ACC 131

Credit to unearned subscription revenue for $90

Computing Magazine receives $90 in advance from a customer for 3 year subscription. Computing Magazine's entry to record the receipt of funds would include a:

expense in the period incurred

GAAP requires that research and development cost to develop a new product be

increase wages expense by 4,800

Stasia, Inc. has a weekly payroll of $8,000 for 5-day work week beginning each Monday and ending each Friday. Stasia's year-end is December 31st. If December 31st falls on a Wednesday, Stasia would make an adjustment entry to

if it is a probable that is will become an actual liability and the amount can be reasonably estimated

a contingent liability is recorded as a journal entry in the accounting records

the bondholder can convert the bond into common stock at a future time

a convertible bond is one where:

the asset its sold for price greater than the asset's book value

a gain is recorded on the sale of a plan asset when:

Warranty liability is debited

a repair to an appliance under warranty occurs within the warranty period. what adjustment is made?

expense account

a revenue expenditure usually results in debit to a(n):

debiting interest expense and crediting interest payable

accrued intrest on a short-term not payable is recorded by?

debit to loss on sale of asset for 800

an asset that cost 24,000 and has accumulated depreciation of 18,000 is sold for 5,200. the entry to record the sale would include a...

the issuing company is likely to retire the bonds before maturity if the bonds are paying 8% interest while the market rate of interest is 4%

if a company's bonds are callable,

increase as the bonds approach their maturity date

if bonds were initially issued at a discount, the carrying value of the bond on the issuer's books will,

obligation that extend beyond one year

long-term debt generally includes:

contingent liabilities

potential liabilities on short-term payable is recorded by:

matching

recording estimated product warranty expense in the year of the sale best follows which of the following account principles.

Interest expense discount on bonds payable

the Collins Company sold $200,000 of 10-year bonds for $190,000. The stated rate on the bonds was 8% and interest is paid annually on Dec. 31. What entry would be made on Dec.31 when the interest is paid?

cost less accumulated depreciation

the book value or carrying value of an asset is defined as:

original cost minus accumulated depreciation

the depreciable cost of an asset is?

amortization

the term used for allocation the cost of an intangible asset to the periods its benefits is:

the started rate of interest is less than yield/market rate of interest at the time of issue

when will bonds sell at discount?

Land

which of the following assets is not subject to depreciation, depletion, and amortization?

estimated useful life in years

which of the following is irreverent in computing a machine's depreciation expense using the units-of-production method?

The risk of becoming bankrupt is reduced

which of the following is not an advantage of issuing long-term debt?

State income tax

which of the following is tax paid by the employee but not the employer

Salaries payable

which of the following most likely would be classified as a current liability

effective rate

which of the following terms does not describe the interest rate printed on the bond certificate?