accounting

treasury shares represents the a. Number of previously issued shares that have been repurchased by the corporation b. number of shares that the corporation has sold c. number of shares that are currently held by stockholders d. maximum number of shares that can be sold by the corporation

a. Number of previously issued shares that have been repurchased by the corporation

depreciation is a. an effort to match the cost of fixed assets with related revenues b. an accumulation of funds to replace the related plant asset c. the difference between the original cost and salvage value of an asset d. the cash allocated each period to maintain a plant asset

a. an effort to match the cost of fixed assets with related revenues

On June 1, the board of directors declared a $100,000 cash dividend to be distributed to common stockholders of record on June 15. The dividend will be paid on July 1. The required journal entry on June 1 includes a a. debit to retained earnings for $100,000 b. debit to dividends expense for $100,000 c. credit to cash for $100,000 d. credit to common stock for $100,000 e. no entry is necessary

a. debit to retained earnings for $100,000

Assets classified as Property, Plant, and Equipment are reported at a. each assets original cost less depreciation since acquisition b. each assets estimated market value at the balance sheet date less depreciation c. each assets estimated market value at the balance sheet date d. the estimated salvage value at the balance sheet date

a. each assets original cost less depreciation since acquisition

which of the following is an example of a cash flow from an operating activity? a. payment of cash for interest on note payable b. receipt of cash for the sale of common stock c. payment of cash dividends to the company stockholders d. receipt of cash from the sale of operating assets

a. payment of cash for interest on note payable

when determining the amount of interest to be paid on a bond, which of the following information is necessary? a. the stated rate of interest on the bonds b. the market rate of interest on the date of issue c. the value of the bonds in one year d. the selling price of the bonds

a. the stated rate of interest on the bonds

During 2022, payson inc. purchased a copyright for $25,000. the company also had an independent appraiser value their corporate brand at $15,000. What amount should payson record in the intangible assets account of its 2022 annual balance sheet? a. $0 b. $25,000 c. $150,000 d. $175,000

b. $25,000

which of the following would appear on the balance sheet as a contingent liability? a. a possible loss in the amount of $4 million from a pending lawsuit b. a probable loss in the amount of $4 million from a pending lawsuit c. a probable loss from a pending lawsuit, the amount of which is not yet determinable d. a lawsuit for $4 million for which the likelihood of loss is remote

b. a probable loss in the amount of $4 million from a pending lawsuit

which of the following is an example of a cash flow from a financing activity? a. receipt of cash from the sale of operating assets b. receipt of cash from the issuance of bonds c. payment of cash for the purchase of operating assets d. payment of cash for interest on note payable

b. receipt of cash from the issuance of bonds

The premium on bonds payable account is shown on the balance sheet as a. contra asset b. a reduction of an expense c. a separate liability that increases the bond to market value at the issue date d. a subtraction from a long-term liability

c. a separate liability that increases the bond to market value at the issue date

the premium on bonds payable account is shown on the balance sheet as a. contra asset b. a reduction of an expense c. a separate liability that increases the bond to market value at the issue date d. a subtraction from a long-term liability

c. a separate liability that increases the bond to market value at the issue date

at the end of 2022, koosharem corp. calculated and recorded $50,000 in depreciation on a building that it had purchased five years earlier. How will this depreciation affect koosharems 2022 financial statements? a. increase assets, increase net income b. increase assets, decrease net income c. decrease assets, decrease net income d. decrease assets, increase net income e. increase liabilities, increase net income

c. decrease assets, decrease net income

which of the following is incorrect about the statement of cash flows? a. it is on the basic financial statement b. it provides information about cash receipts and cash payment of an entity during a period c. it reconciles the ending cash account balance to the balance per the bank statement d. it provides information about the operating, investing, and financing activities of the business

c. it reconciles the ending cash account balance to the balance per the bank statement

which of the following is an example of a cash flow from an investing activity? a. receipt cash from the issuance of bonds b. payment of cash to repurchase outstanding common stock c. receipt of cash from the sale of operating assets d.payment of cash to suppliers for inventory

c. receipt of cash from the sale of operating assets

when bonds are sold for less than par (i.e. at a discount), this means that the a. maturity value will be less than the par b. maturity value will be greater than the par c. stated rate of interest is less than the market rate of interest d. stated rate of interest is greater than the market rate of interest

c. stated rate of interest is less than the market rate of interest

when bonds are sold for less than par (i.e. at a discount), this means that the a. maturity value will be less than the par b. maturity value will be greater than the par c. stated rate of interest is less than the market rate of interest d. stated rate of interest is greater than the market rate of interest

c. stated rate of interest is less than the market rate of interest

if a company reports goodwill as an intangible asset on its financial statements, what is the one thing you know with certainty? a. the company is valuable company worth investing in b. the company has a well-established brand name c. the company has purchased another company d. the goodwill will generate a lot of positive business for the company for many years to come

c. the company has purchased another company

The discount on bonds payable account is shown on the balance sheet as a. an asset b. an expense c. a long-term liability d. a contra liability account that reduces the bond to market value at the issue date

d. a contra liability account that reduces the bond to market value at the issue date

the discount on bonds payable account is shown on the balance sheet as a. an asset b. an expense c. a long-term liability d. a contra-liability account that reduces the bond to market value at the issue date

d. a contra-liability account that reduces the bond to market value at the issue date

Par value represents the a. current market price of the stock b. amount for which any treasury shares have been acquired by the corporation c. amount for which treasury shares may be reissued d. arbitrary amount that establishes a minimum price for the stock when it is first issued

d. arbitrary amount that establishes a minimum price for the stock when it is first issued

which of the following factors is needed to calculate depreciation on plant and equipment? a. the assets acquisition cost, replacement cost, and its estimated residual value b. the estimated residual value of the asset, its replacement cost, and its market value c. the asset replacement cost, its estimated life, and its estimated residual value d. the estimated life of the asset, its acquisition cost, and its estimated residual value

d. the estimated life of the asset, its acquisition cost, and its estimated residual value

indicate which of the following statements is true a. since intangible asset lack physical substance, they need to be disclosed only in the notes to the financial statements b. goodwill should be reported as a contra account in the stockholder's equity section c. intangible assets are typically combined with plant assets and inventory and then shown in the property, plant, and equipment section d. totals of major classes of assets can be shown in the balance sheet, with asset details disclosed i

d. totals of major classes of assets can be shown in the balance sheet, with asset details disclosed in the notes to the financial statements.