Acc 204 final
A firm owns 1% of Big Deal Co. as an investment. They have been receiving dividends each year from Big Deal Co. but this year they did not receive a dividend. What is the appropriate year end entry for dividends?
No entry
Customer paid for services received from prior month. How does that impact total equity?
no effect
Equipment is purchases for cash. How does that impact total assets?
no effect
A bond includes a feature that allows the issuer to pay off the bonds prior to maturity date. What type of bond is this?
Callable bond
An amount of money owed to a creditor as an annual installment payment on a ten-year note is reported as:
Current portion of long term debt in Current Liabilities
Which line item would you not see on a direct method presentation of the cash flow statement?
Gain on sale of operating assets
How is an indirect presentation different from a direct presentation in the cash flow statement?
Indirect method reconciles net income to operating cash flows
Which of these is NOT true about intangibles?
Legal life may be shorted than useful life
Dividends are declared and paid to stockholders. How does that impact total assets?
decrease
Pay for this month's utilities expense. How does that impact total assets?
decrease
Building is purchased using a loan to pay the purchase price. How does that impact total assets?
increase
On June 1, a board of directors declared a $3 per share cash dividend, payable on June 30 to all common stockholders of record on June 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued, and 200 shares in the treasury. The entry to record the dividend declaration
increases a liability account by $2,400
Which of these expenditures would be capitalized (added to the cost of) an operating asset?
rebuilding an engine that increases salvage value
If a company uses the direct write off method to account for doubtful accounts (not allowed by GAAP), when will the company's Stockholders' equity decrease?
when adjusting for expected bad debts
Issue a promissory note for $2,500. How does that impact total assets?
increase
Issue shares of capital stock to stockholders for cash. How does that impact total assets?
increase
Land is acquired in exchange for shares of stock issued to the land owner. How does that impact total assets?
increase
Land is acquired in exchange for shares of stock issued to the land owner. How does that impact total equity?
increase
When do you record dividend income from an investment?
when dividends are received in cash