accounting final

Which of the following most likely would be classified as a current liability? A. Dividends payable B. Mortgage payable as a single payment in 10 years C. Three-year notes payable D. Bonds payable in 5 years

A. Dividends payable

Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, an inventory increase with cash would be classified on the statement of cash flows. A. Operating activities section. B. Does not represent a cash flow. C. Investing activities section. D. Financing activities section.

A. Operating activities section.

Which of the following is not a significant date with respect to dividends? A. The incorporation date. B. The record date. C. The payment date. D. The declaration date.

A. The incorporation date.

Current liabilities are due A. and payable within one year. B. but not receivable for more than one year. C. and receivable within one year. D. but not payable for more than one year.

A. and payable within one year.

Dividends in arrears are dividends on A. cumulative preferred stock that have not been declared for a given period of time. B. common dividends that have been declared but have not yet been paid. C. non-cumulative preferred stock that have not been declared for a given period of time. D. cumulative preferred stock that have been declared but have not been paid.

A. cumulative preferred stock that have not been declared for a given period of time.

Regular dividends are declared out of A. retained earnings. B. treasury stock. C. paid-in capital in excess of par value. D. common stock.

A. retained earnings.

Which of the following is not an advantage of issuing bonds instead of common stock? A. Stockholder control is not affected B. Earnings per share on common stock may be lower C. Tax savings result D. Each of these answer choices is an advantage.

B. Earnings per share on common stock may be lower

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, dividends received on securities held would be reported on the statement of cash flows. A. Investing activities section. B. Operating activities section. C. Does not represent a cash flow. D. Financing activities section.

B. Operating activities section.

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the ______________ in the investing activities section. A. cash inflow and cash outflow can either be reported separately or presented as one item B. cash inflow and cash outflow must be reported separately C. cash outflow is only is presented D. two cash effects must be netted and presented as one item

B. cash inflow and cash outflow must be reported separately

Significant noncash transactions would not include A. asset acquisition through bond issuance. B. treasury stock acquisition. C. exchange of plant assets. D. conversion of bonds into common stock.

B. treasury stock acquisition.

Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle? A. Cash from financing is positive. B. Collections on accounts receivable will lag behind sales. C. Cash from investing is positive. D. Cash from operations on the statements of cash flows will be less than net income on the income statement.

C. Cash from investing is positive.

Which of the following is not typically a characteristic experienced by a company during the introductory phase of the corporate life cycle? A. Cash from financing is positive. B. Cash used in operations will exceed cash generated by operations. C. Cash from investing is positive. D. Considerable cash will be used to purchase productive assets.

C. Cash from investing is positive.

Which of the following activities would be classified as an investing activity? A. Cash received from dividend revenue. B. Cash received from interest revenue. C. Cash paid (loaned) to a borrower as a loan. D. Cash paid to reacquire capital stock.

C. Cash paid (loaned) to a borrower as a loan.

The amount of sales tax collected by a retail store when making sales is A. not recorded because it is a tax paid by the customer. B. recorded as an operating expense. C. a current liability. D. a miscellaneous revenue for the store.

C. a current liability.

Treasury Stock is a(n) A. asset account. B. retained earnings account. C. contra stockholders' equity account. D. contra asset account.

C. contra stockholders' equity account.

Which of the following represents the largest number of common shares? A. Issued shares. B. Outstanding shares. C. Treasury shares. D. Authorized shares.

D. Authorized shares.

Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to: A. Common Stock $50,000 and Retained Earnings $20,000. B. Common Stock $70,000. C. Common Stock $50,000 and Paid-in Capital in Excess of Stated Value $20,000. D. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.

D. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.

Which of the following is not true of a corporation? A. It may sue and be sued. B. It may enter into binding legal contracts in its own name. C. It may buy, own, and sell property. D. The acts of its owners bind the corporation.

D. The acts of its owners bind the corporation.

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is: A. not reported on a statement of cash flows. B. added to net income. C. ignored because it does not affect cash. D. deducted from net income.

D. deducted from net income.

The two ways that a corporation can be classified by ownership are A. stock and non-stock. B. inside and outside. C. majority and minority. D. publicly held and privately held.

D. publicly held and privately held.

The contractual interest rate on a bond is often referred to as the A. market rate. B. the maturity rate. C. callable rate. D. stated rate.

D. stated rate.