Financial Acc Clicker Q's Final
C. Amortization
All but which of the following are acceptable depreciation methods under GAAP? A. Straight-line B. Units of Production C. Amortization D. Double declining balance
C. Research and Development
All but which of the following are amortized over the useful life of the asset? A. Patent B. Copyright C. Research and Development D. Franchise fees
D. Goodwill
All but which of the following are amortized under GAAP? A. Patents B. Trademarks C. Copyrights D. Goodwill
C. Research and Development costs
All but which of the following are considered Intangible Assets? A. Goodwill B. Patents C. Research and Development costs D. Franchise fees
C. Accumulated Depreciation
All but which of the following would be recorded by Cainas Cookies on the investing section of the statement of cash flows? A. Purchase of equipment B. Sale of a building C. Accumulated Depreciation D. Investment in stock of XYZ Company
D. Bonds Payable
All of the following are considered current liabilities except for: A. Unearned revenues B. Accounts payable C. Accrued payables D. Bonds Payable
D. A non-cash transaction
Suppose Yummy Treats Bakery issues common stock in exchange for a building. What type of transaction would this be on the statement of cash flows? A. Operating activity B. Investing activity C. Financing activity D. A non-cash transaction
C. $5,000 (PV ann n = 3 I = 6%) + $7,500 (PV ann n = 5 I = 6% - PV ann n = 3 I = 6%)
The Dean promises me a bonus of $5,000 for the next 3 years, and another $7,500 for year 4 and 5 if I continue to give hard final exams! Assuming a 6% return, to solve for what that bonus is worth, I need to solve for: A. $5,000 (PV ann n = 5, I = 6% ) + $2,500 (PV ann n 2 I = 6%) B. $5,000 (PV ann n = 3 I = 6%) + $7500 (PV ann n = 2 I = 6%) C. $5,000 (PV ann n = 3 I = 6%) + $7,500 (PV ann n = 5 I = 6% - PV ann n = 3 I = 6%) D. It is worth $30,000
A. + $8,000, Investing activity
The company sold a piece of equipment originally costing $10,000 with accumulated depreciation of $2,000 for $8,000. How is this recorded on the statement of cash flows? A. + $8,000, Investing activity B. + $8,000, Financing activity C. - $8,000, Investing Activity D. - $10,000 Investing Activity, + $2,000 operating activity
C. Contra equity
Treasury Stock is considered what type of account? A. Contra asset B. Contra revenue C. Contra equity D. Stockholder's Equity
B. A contra equity account
Treasury stock is: A. A contra revenue account B. A contra equity account C. A contra asset account D. An investment account
C. Assets decrease and stockholder's equity decreases
When treasury stock is purchased with cash, what is the impact on the balance sheet equation? A. No change B. Assets decrease and stockholder's equity increases C. Assets decrease and stockholder's equity decreases D. Assets decrease and losses increase
C. Land
Which of the following assets is not depreciated?A. Land Improvements B. Leasehold Improvements C. Land D. Buildings E. All of the above are depreciated
A. Payroll tax liabilities are considered long term liabilities on the balance sheet.
Which of the following statements is FALSE? A. Payroll tax liabilities are considered long term liabilities on the balance sheet. B. FUTA and SUTA are employer payroll tax expenses C. Interest payable to the bondholders this year would be considered a current liability on the balance sheet. D. The currently maturing portion of long-term debt must be reported as a current liability on the balance sheet.
D. Annual maintenance on the building's air conditioning system
Which of the following would not be considered a capital expenditure? A.Real estate commission paid to buy the building B. Construction materials and labor C. Concrete for the building's parking lot D. Annual maintenance on the building's air conditioning system
C. Increase of a Financing activity
XYZ Company issued 10,000 shares of $1 par value common stock for $30,000. How would this be classified on the statement of cash flows? A. Decrease of a financing activity B. Increase of an Investing activity C. Increase of a Financing activity D. Decrease of an investing activity
B. Debit: Interest receivable $500 and Credit: Interest Income $500
XYZ Company loaned ABC Company $30,000 on 11/1/15 and had ABC sign a 6 month, 10% note with no interest paid until maturity. Assuming NO adjusting entries were made during the year, the entry on XYZ's books for 12/31 would be: A. Debit: Interest Expense $500 and Credit: Interest Payable $500 B. Debit: Interest receivable $500 and Credit: Interest Income $500 C. Debit: Interest Expense $3,000 and Credit: Interest Payable $3,000 D. Debit: Interest receivable $1,500 and Credit: Interest Income $1,500
B. Investing activity
XYZ Company purchased some equipment with cash on 10/15/15. What type of activity would this be classified as on the statement of cash flows? A. Operating activity B. Investing activity C. Financing activity D. None of the above
A. Higher than the cash interest paid each year.
A $50,000, 5%, 2 year bond was sold on 1/1/15 for $47,325, and interest is paid annually on the bond. The interest expense will be: A. Higher than the cash interest paid each year. B. Lower than the cash interest paid each year. C. The same amount as the cash interest paid each year. D. It cannot be determined with the information given.
C. $30,000
A company issues a $1,000,000, 6%, 10 year bond when the market rate was 4%, and the bond pays interest semi-annually. The interest paid each period will be: A. $60,000 B. $40,000 C. $30,000 D. $15,000
D. At a premium
A company issues a $1,000,000, 6%, 10 year bond when the market rate was 4%. The bond will be issued: A. At par value B. At face value C. At a discount D. At a premium
A. More than $60,000
A company issues a $1,000,000, 6%, 10 year bond when the market rate was 8%, and the bond pays interest annually. The interest expense recorded in the first payment period will be: A. More than $60,000 B. Less than $60,000 C. $60,000 each payment period D. $80,00 each payment period
C. There is a $4,000 gain on this transaction
A computer server with a cost of $50,000, $5,000 residual value, is purchased on 1/1/16 with an estimated 5 year life, and the company uses double declining balance depreciation. The company decides to sell the server for $22,000 on 12/31/17. Which of the following statements is true? A. There is an $8,000 loss on this transaction B. There is an $800 loss on this transaction C. There is a $4,000 gain on this transaction D. There is an $8,000 gain on this transaction
B. There is a $7,000 gain on this transaction.
A copy machine with a cost of $40,000 (and no residual value) is purchased on 1/1/12 with an estimated 5 year life, and the company uses straight line depreciation. The company decides to sell the machine for $25,000 on 9/30/14. Which of the following statements is true? A. There is a $1,000 gain on this transaction. B. There is a $7,000 gain on this transaction. C. There is a $7,000 loss on this transaction. D. The net book value of this asset is $24,000
C. Has no net effect on stockholder's equity
A small stock dividend: A. Increases stockholder's equity B. Decreases stockholder's equity C. Has no net effect on stockholder's equity D. Decreases stockholder's equity and assets
C. $1,000
ABC Company files Articles of Incorporation on 1/1/15 and 1,000 shares are authorized. ABC issues 700 shares on 2/1/15, but decides to buy back 200 shares of treasury stock on 6/1/15. On 7/1/15 ABC decides to declare a dividend of $2 per share for all stockholders of record on 8/1/15 to be paid 9/30/15. How much is the dividend payable? A. $2,000 B. $1,400 C. $1,000 D. $400
A. $5,000
ABC Company issued 1,000 shares of $100, 5% preferred stock, par value $100 for $300,000 on 1/1/15, and 10,000 shares of Common stock, $1 par value for $30,000. On 6/30/15, the company declared a cash dividend of $15,000. What amount of the dividend will be paid to preferred stockholders? A. $5,000 B. $10,000 C. $15,000 D. It cannot be determined with the information given.
B. $100,000
ABC Company issued 1,000 shares of $100, 5% preferred stock, par value $100 for $300,000. How much will the company record to its preferred stock account? A. $5,000 B. $100,000 C. $200,000 D. $300,000
B. Debit: Interest Expense $533.33 and Credit: Interest Payable $533.33
Cainas Cookies borrowed $20,000 cash on September 1, 2017 and signed a 10 month, 8% note with interest due upon maturity. Assuming no adjusting entries have been made during 2017, what adjusting entry will need to be recorded on 12/31/17? A. Debit: Interest Expense $1,600 and Credit: Interest Payable $1,600 B. Debit: Interest Expense $533.33 and Credit: Interest Payable $533.33 C. Debit: Interest Expense $400 and Credit: Interest Payable $400 D. Debit: Interest Expense $640 and Credit: Interest Payable $640
C. 10/1/15 and 12/31/15
Cainas Cookies declares a $10,000 on 10/1/15 for all shareholders of record on 10/31/15, to be paid on 12/31/15. Journal entries are required on: A. 10/1/15 B. 10/1/15 and 10/31/15 C. 10/1/15 and 12/31/15 D. 10/1/15, 10/31/15 and 12/31/15
B. Debit: Retained earnings (Dividends) and Credit: Dividends Payable
Cainas Cookies declares a $10,000 on 10/1/15 for all shareholders of record on 10/31/15, to be paid on 12/31/15. The journal entry required on 10/1 is: A. Debit: Retained earnings (Dividends) and Credit: Cash B. Debit: Retained earnings (Dividends) and Credit: Dividends Payable C. Debit: Dividends Payable and Credit: Cash D. Debit: Cash and Credit: Dividends
B. $1.00 per share
Cainas Cookies had the following information reported for 2015: Revenues $100,000 Expenses $40,000 Preferred Dividends $10,000 Common Dividends $20,000 Preferred shares outstanding - 10,000 shares, $100 par value Common shares outstanding - 50,000 shares, $1 par value EPS is: A. $1.20 per share B. $1.00 per share C. $.60 per share D. $.50 per share
B. $1.00 per share
Cainas Cookies had the following information reported for 2015: Revenues $100,000 Expenses $40,000 Preferred Dividends $10,000 Common Dividends $20,000 Preferred shares outstanding - 10,000 shares, $100 par value Common shares outstanding - 50,000 shares, $1 par value EPS is: A. $1.20 per share B. $1.00 per share C. $.60 per share D. $.50 per share
D. $3,000 (PV ann n = 3 I = 10%) + $4,000 (PV ann n = 5 I = 10% - PV ann n = 3 I = 10%)
Cainas Cookies is deciding whether to lease a copier for 5 years. Lease payments for years 1-3 will be $3,000 per year, and years 4-5 will be $4,000 per year. Assuming a 10% interest rate, to solve for what this is costing her today, Cainas needs to solve for: A. $3,000 (FV ann n = 3 I = 10%) + $4,000 (FV ann n = 2 I = 10%) B. $3,000 (PV ann n = 3 I = 10%) + $4,000 (PV ann n = 2 I = 10%) C. $3,000 (PV ann n = 3 I = 10% + $4,000 (PV ann n = 1 I = 10%) + $4,000 (PV ann n = 2 I = 10%) D. $3,000 (PV ann n = 3 I = 10%) + $4,000 (PV ann n = 5 I = 10% - PV ann n = 3 I = 10%)
C. Debit: Cash $112,000 and Credit: Common Stock $5,000, APIC- Common stock $7,000, Preferred Stock $100,000
Cainas Cookies issued 5,000 shares of $1 par value common stock for $12,000 and 1,000 shares of 5% preferred stock, $100 par value, for $100,000. What journal entries should the company make for issuance of the stock? A. Debit: Cash $112,000 Credit: Stock $112,000 B. Debit: Cash $112,000 Credit: Common Stock $12,000, Credit Preferred Stock $100,000 C. Debit: Cash $112,000 and Credit: Common Stock $5,000, APIC- Common stock $7,000, Preferred Stock $100,000 D. Debit: Cash $112,000 and Credit: Common Stock $5,000, APIC - CS $7,000, Preferred stock $500, APIC $99,500
D. $1,000,000 (PV ss n = 10 I = 4%) + $60,000 (PV ann n = 10 I = 4%)
Cainas Cookies issues a $1,000,000, 5 year, 12% bond when the market rate of interest is 8%. Interest is paid semi-annually. To solve for the issue price of the bond, you need to solve for: A. $1,000,000 (PV ss n = 5 I = 8%) + $120,000 (PV ann n = 10 I = 4%) B. $1,000,000 (PV ss n = 10 I = 6%) + $40,000 (PV ann n = 10 I = 6%) C. $1,000,000 (PV ss n = 10 I = 4%) + $120,000 (PV ann n = 10 I = 4%) D. $1,000,000 (PV ss n = 10 I = 4%) + $60,000 (PV ann n = 10 I = 4%)
C. $7,480
Cainas Cookies issues a $100,000, 10 year bond for $93,500 on 1/1/15. The stated rate of interest was 6% and the market rate was 8% when the bond was sold, and interest is paid annually. How much interest expense will be recorded on 12/31?A. $6,000 B. $8,000 C. $7,480 D. $5,610
D. A discount
Cainas Cookies issues a $100,000, 6%, 10 year bond when the market rate is 8%. The bond pays interest on 6/30 and 12/31 of each year. The bond will be sold at: A. Face value B. Par value C. A premium D. A discount
B. $100,000 (PV ss n = 20 I = 4%) + $3,000 (PV ann n = 20 I = 4%)
Cainas Cookies issues a $100,000, 6%, 10 year bond when the market rate is 8%. The bond pays interest on 6/30 and 12/31 of each year. To solve for the issue price of the bond, I need to solve for: A. $100,000 (PV ss n = 10 I = 8%) + $6,000 (PV ann n = 20 I = 4%) B. $100,000 (PV ss n = 20 I = 4%) + $3,000 (PV ann n = 20 I = 4%) C. $100,000 (PV ss n = 20 I = 3%) + $4,000 (PV ann n = 20 I = 3%) D. $100,000 (PV ss n = 10 I = 8%) + $3,000 (PV ann n = 10 I = 8%)
C. $100,000 (PV ss n = 40 I = 1%) + $2,000 (PV ann n = 40 I = 1%)
Cainas Cookies issues a $100,000, 8%, 10 year bond that pays interest quarterly when the market rate of interest was 4%. To solve for the issue price, I need to solve for: A. $100,000 (PV ss n = 10 I = 4%) + $2,000 (PV ann n = 40 I = 4%) B. $100,000 (PV ss n = 40 I = 1%) + $8,000 (PV ann n = 40 I = 1%) C. $100,000 (PV ss n = 40 I = 1%) + $2,000 (PV ann n = 40 I = 1%) D. $100,000 (PV ss n = 10 I = 4%) + $4,000 (PV ann n = 10 I = 4%)
C. $6,720
Cainas Cookies purchases a $28,000 commercial stove, estimated 5 year life or 10,000 baking hours with estimated salvage value $3,000 on 1/1/17. Actual baking hours for 2017 were 1,800 hours, and for 2018 were 2,200 hours. Assuming double declining balance, what will be her depreciation expense for 2018? A. $5,600 B. $11,200 C. $6,720 D. $6,000
B. $5,000
Cainas Cookies purchases a $28,000 commercial stove, estimated 5 year life or 10,000 baking hours with estimated salvage value $3,000 on 1/1/17. Actual baking hours for 2017 were 1,800 hours, and for 2018 were 2,200 hours. Assuming straight line depreciation, what will be her depreciation expense for 2018? A. $5,600 B. $5,000 C. $4,500 D. $5,500
D. $5,500
Cainas Cookies purchases a $28,000 commercial stove, estimated 5 year life or 10,000 baking hours with estimated salvage value $3,000 on 1/1/17. Actual baking hours for 2017 were 1,800 hours, and for 2018 were 2,200 hours. Assuming units of production depreciation, what will be her depreciation expense for 2018? A. $5,600 B. $5,000 C. $4,500 D. $5,500
D. She sold the equipment at a loss of $3,000.
Cainas Cookies purchases equipment on 1/1/15 for $40,000, to be used for a total of 72,000 baking hours, with a $4,000 residual value. Cainas uses a units of production method. She bakes for 5,000 hours in 2015 and 9,000 hours in 2016. On 1/1/17 she sells the equipment for $30,000. Which of the following is true? A. To record the entry, she will need to credit the equipment account for $33,000. B. To record the entry, she will need to credit accumulated depreciation for $7,000. C. She sold the equipment at a gain of $8,000. D. She sold the equipment at a loss of $3,000.
D. $10,000
Cainas Cookies purchases equipment on 1/1/15 for $40,000, with an estimated 4 year life, to be used for a total of 24,000 baking hours, with a $4,000 residual value. She bakes for 4,000 hours in 2015 and 7,000 hours in 2016. What is her depreciation expense for 2016 if she uses double declining balance method? A. $18,000 B. $9,000 C. $20,000 D. $10,000
B. $10,500
Cainas Cookies purchases equipment on 1/1/15 for $40,000, with an estimated 4 year life, to be used for a total of 24,000 baking hours, with a $4,000 residual value. She bakes for 4,000 hours in 2015 and 7,000 hours in 2016. What is her depreciation expense for 2016 if she uses units of production depreciation method? A. $6,000 B. $10,500 C. $9,000 D. $11,667
B. False
Federal Income taxes payable, FUTA, and SUTA are all employer payroll tax expenses on a company's books. A. True B. False
B. False You need to solve for: $6,000 (FV ann n = 20, I = 12%)
I decide I want to retire in 20 years, and plan to invest $6,000 a year. Assuming a 12% interest rate, to solve for how much I will have in my fund to retire with, I need to solve for: $6,000 (PV ann n = 20, I = 12%) A. True B. False
B. False
I decide I want to retire to have $2,000,000 when I retire in 20 years. Assuming I can earn 8% interest with interest compounding semi-annually, to solve for how much I need to invest each year to reach my goal, I need to solve for: PMT (FV ann n = 40 i = 8%) = $2,000,000 A. True B. False
B. PMT (PV ann n = 12 I = 1%) = $10,000
I decide to buy a new car today for $10,000, that I must pay monthly for the next year. Assuming a 12% interest rate, how do I solve for my monthly payment? A. PMT (FV ann n = 12 I = 12%) = $10,000 B. PMT (PV ann n = 12 I = 1%) = $10,000 C. PMT (PV ann n= 1 I = 12%) = $10,000 D. PMT (FV ann n = 12 I = 1%) = $10,000
D. PMT (FV ann n = 12 I = 2%) = $30,000
I need $30,000 in 3 years. To determine how much I need to invest each quarter, assuming an 8% interest rate, I need to solve for: A. PMT (PV ann n = 12, I = 2%) = $30,000 B. PMT (FV ann n = 12 I = 8%) = $30,000 C. PMT (FV ann n = 3 I = 8%) = $30,000 D. PMT (FV ann n = 12 I = 2%) = $30,000
B. False You need to solve for $20,000 (FV ann n = 40 I = 4%)
I plan on investing $20,000 a year for the next 20 years, with interest compounding semi-annually. Assuming an 8% interest rate, to determine how much I will have in 20 years, I need to solve for: $20,000 (FV ann n = 40 I = 8%) A. True B. False
D. PMT (PV ann n = 60 I = 1%)
I purchase a Lexus today for $25,000, and agree to pay for the car for the next 5 years. Assuming a 12% interest rate, to solve for my monthly payment I need to solve for: A. PMT (FV ann n = 5 I = 12%) B. PMT (PV ann n = 5 I = 12%) C. PMT (FV ann n = 60 I = 1%) D. PMT (PV ann n = 60 I = 1%)
D. PMT (FV ann n = 40 I = 5%)
I want to have $3,000,000 when I retire in 20 years. If I am able to earn 10% on my investments with interest compounded semi annually, to determine how much I should deposit each year, I need to solve for: A. $3,000,000(PV ann n = 20 I = 10%) B. $3,000,000 (FV ann n = 20 I = 5%) C. PMT (PV ann n = 20 I = 10%) D. PMT (FV ann n = 40 I = 5%)
D. PMT (FV ann n = 40 I = 5%)
I want to have $3,000,000 when I retire in 20 years. If I am able to earn 10% on my investments with interest compounded semi annually, to determine how much I should deposit each year, I need to solve for: A. $3,000,000(PV ann n = 20 I = 10%) B. $3,000,000 (FV ann n = 40 I = 5%) C. PMT (PV ann n = 20 I = 10%) D. PMT (FV ann n = 40 I = 5%)
A. $1,000,000(PV ann n = 20 I = 8%)
I win the lottery, and have the option of receiving $1,000,000 a year for 20 years or $13,000,000 today. Assuming an 8% interest rate, to make this decision I need to solve for: A. $1,000,000(PV ann n = 20 I = 8%) B. $1,000,000 (FV ann n = 20 I = 8%) C. PMT (PV ann n = 20 I = 8%) D. PMT (FV ann n = 20 I = 8%) = $13,000,000
B. $380,000
Katz Corporation has issued 400,000 shares of common stock and holds 20,000 in treasury. The chapter authorized the issuance of 500,000 shares. The company declared and paid a cash dividend of $1 per share. What is the total amount of the dividend is: A. $400,000 B. $380,000 C. $20,000 D. $500,000
