Accounting final

the price a corporation pays when it reserves the right to retire or redeem stock at a specific price

Redemption value is defined as:

Services are performed

Revenue is traditionally recognized in the accounting records when:

$833

Robert purchased a truck for $50,000 with a life expectancy of 5 years; the amount of the depreciation adjustment for the first month would be:

SOC SEC, MEDICARE, FUTA, SUTA

employer's portion of the taxes

charged to an expense account

expenditures for changing oil in a machine or a car would be:

an increase in accounts payable

in the statement of cash flows, which event would cause cash to be increased?

A decrease in prepaid insurance

in the statement of cash flows, which of the following would be an addition to net income

preferred stockholders get their yearly dividend and the remainder goes to common stockholder's

preferred stock is considered to be non-participating when:

subtract the increase from the net income in operating activities section

ricks accounts receivable increased by $25,000 during the year. What is the adjustment to the cash flow?

operating activities

the activity that is probably the most important indicator for financial health

The checks the bank has paid and any deposits received

the bank statement does NOT show;

a deduction from the balance per company books

the bank statement included bank charges. On the bank reconciliation, this item is:

Debit FUTA payable; credit cash

the correct journal entry to record the payment of FUTA to the federal govt is to:

the employer's portion of the payroll taxes

the debit amount to payroll tax expense represents:

as credits to liability accounts until paid

the employer records deductions from the employee's paycheck:

a debit to payroll tax expense

the employer's total FICA, SUTA, and FUTA tax is recorded as:

debit retained earnings; credit dividends payable

the entry required to declare a dividend

A credit to FICA taxes payable

the entry to record the payroll tax expense would include:

debit machinery $17,200; credit accounts payable $17,200

the entry to record the purchase of a machine on account that costs $15,000, instillation costs $1500 and freight $700 would be:

debit dividends payable: credit cash

the journal entry to pay a cash dividend is to:

debit dividends payable; credit cash

the journal entry to pay a cash dividend is to:

authorized capital stock

the max number of shares of capital stock that a corporation can sell is known as:

Corporation

the type of business organization that can continue indefinitely is known as:

$5,000

what would the book value be at the end of year 6 for a piece of equipment using the straight line method when cost is $11,000, residual value is $1,000 and the expected life is 10 years

rate of return on common stockholder's equity

which of the following ratios helps evaluate how well a company is earning profit for the common stockholders

Credit to cash for $80

A $100 petty cash fund has cash of $20 and valid receipts for $40. the entry to replenish the fund would include a:

added to the balance per the books

A check for $46 is incorrectly recorded on the books as $64. The $18 error should be shown on the bank reconciliation as:

loss of $500

A dishwasher that originally cost $5,000 has no estimated salvage value and was depreciated over 5 years at the end of the second year it was sold for 2500 cash. the transaction would result in:

the cash received is greater than the book value of the asset

A gain on the sale of an asset occurs when:

double taxation of income to the corporation and of dividends paid to shareholders

A major disadvantage of a corporation is the:

purchase of office equipment for 12,000, paying $8,000 cash, with the rest on account

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and total liabilities. This transaction could have been:

a liability, and it has a normal credit balance

Accounts payable is:

Balance sheet and credit

Accumulated Depreciation is found on which of the following financial statements and which is the normal balance?

Accounts Payable

An account that would be increased by a credit is:

addition to the balance per the books

An error, on the company's books, in recording a $72 deposit as $27 would be included on the bank reconciliation as a:

$1,935

Bob Stein's hourly wage is $45, and he worked 42 hours during the week. Assuming and overtime rate of time and a half over 40 hours, Bob's gross pay is:

Purchase of supplies for $800 with a down payment of $200 and the remainder on account

Conner sales' total assets and total liabilities increased $600. the transaction could have been:

a decrease in stockholders equity

Declaration of a cash dividend causes:

cumulative preferred stockholders

Dividends in arrears occur when the company does NOT pay dividends to:

Accounts payable, debit; Cash, credit

During the month of October, Ford advertised on the internet. Ford received the bill for $600 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is:

debit cash 2000; credit-treasury stock-common 1500; credit paid in capital from treasury stock 500

Farm and supply reissued 100 shares of treasury stock at 20 that had been reacquired for $15 per share. what is the entry?

Credit to food inventory for $1,600; Debit to food expense for $1,600

Food inventory on the original trial balance equals $13,500. A physical count of food on hand on Nov. 30 values the inventory at $11,900. the adjusting entry would be:

debit to loss on disposal $7,000, Credit to van $22,000, debit to accumulated depreciation $15,000

Greetings online disposed of a van that cost $22,000 with accumulated depreciation of $15,000. the journal entry would include:

they would be subtracted from the balance of the bank statement

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement?

A payment was made on account

If accounts payable has been debited, it is most likely that:

The company collected a payment from a customer

If accounts receivable has been credited, it is most likely that:

assets will be overstated and expenses will be understated

If prepaid rent expense for the period is NOT adjusted:

Expenses would be too low

If the adjustment for supplies used during the period was NOT made:

No effect on Owner's equity

If total liabilities increased by 2000 and the assets increased by 2000 during the accounting period, what is the change in owner's equity

all cash receipts will be deposited into the bank the same day they arrive, all cash payments will be made by check(except petty cash), responsibilities and duties of employees will be divided

Internal control over a company's assets should include the following procedures:

$9,000

Lacy purchased equipment for $76,000 on Jan. 1. its residual value is $4,000 with a useful life of 8 years. the amount of depreciation expense each year under the straight line method is:

Decrease an asset and decrease owner's equity

Mary withdrew cash in her new business. what affect will this have?

total revenues-total expenses

Net income or net loss for a period is calculated by the following formula:

Debit prepaid insurance; credit cash

On July 1, Hill's construction paid 6 months' insurance in advance. the journal entry to record this transaction is:

$4,277.50

On June 15, Bob love earned $5,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; Federal income tax of $300; and state income tax of $40. What is his net pay?

Debit rent expense, $2000

On Nov. 1, Duane paid $24,000 in advance for a year's rent. the adjusting entry for rent expense for the month of Nov. would be:

Have not been presented to the bank for payment but have been subtracted in the checkbook

Outstanding checks:

have not been presented to the bank for payment but have been subtracted in the checkbook

Outstanding checks:

$200

Shelly's cumulative earnings before this pay period were $6,800 and gross pay for the week is 1,000. assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for FUTA and SUTA

Federal Income Tax

The account for payroll tax expense includes all of the following except:

a deduction from the balance per company books

The bank statement included bank charges: On the bank reconciliation, this item is:

Assets=liabilities+owner's equity

The basic accounting equation is:

Book Value

The cost of an asset less accumulated depreciation equals:

Total assets decreasing and total expenses increasing

The depreciation of equipment will require an adjustment that results in:

The statement of Owner's equity

The ending figure for capital, used on the balance sheet, will be obtained from:

A debit to cash and a credit to accounts receivable

The journal entry to record a shift of assets would include:

Credit to cash

The journal entry to record the entry of a customer's non sufficient funds check would include a:

A debit to supplies expense for $1,100; a credit to supplies inventory for $1,100

Unlimited doors' supplies inventory on Sep. 30 is $1,900. A count of the supplies on hand as of Oct. 31 is $800. The adjusting entries for supplies inventory/supplies expense for October's financial results would be:

Liability

What type of account is wages and salaries payable?

Debit

When recording a transaction in a journal, the account listed first is always the:

Note collected by the bank

Which item should be added to the company's book balance during the bank reconciliation

Assets, expenses and withdrawals

Which of the following groups have normal debit balances?

Land

Which of the following is a non-depreciate asset

A withdrawal by the owner

Which of the following will decrease owner's equity?

Recording of salaries incurred but not paid

Which of the following would cause a liability to be credited and an expense to be debited?

Liabilities

Which type of account would NOT be reported on the income statement

Paid by the employer to protect the employee against job-related injury or death

Worker's comp insurance is?

issuing stock or bonds

a cash increase from a financing activity would be:

balance on the bank statement+deposits in transit-outstanding checks

adjusted cash balance per bank

limited liability to the shareholders

an advantage of a corporation would be:

the purchase of fixed assets

an outflow of cash from investing activities would be: