accounting final ch 10 - 17
Chapter 11 On January 1, 2016, a business borrowed $11,000 on a five-year, 55% note payable. At December 31, 2016, the business should record A. interest payable of $550. B. cash payment of $11,000. C. note receivable of $11,000. D. nothing. (The note is already on the books.)
A. interest payable of $550.
Chapter 11 Known liabilities of estimated amounts are A. reported on the balance sheet. B. ignored. (Record them when paid.) C. reported on the income statement. D. reported only in the notes to the financial statements.
A. reported on the balance sheet.
Chapter 14 A bond that matures in installments at regular intervals is a A. serial bond. Your answer is correct.B. periodic bond. C. terminal bond. D. term bond.
A. serial bond.
Chapter 17 Pacific Corporation reported the following financial statements: The company has 2,600 shares of common stock outstanding. What is Pacific's earnings per share? (Round the earnings per share to two decimal places, X.XX.) Review Only LOADING... Click the icon to see the Worked Solution. A. $5.60 Your answer is correct.B. 2.06 times C. $1.62 D. $6.51
A. $5.60
Chapter 15 Which of the following investments is most likely classified as a held-to-maturity investment? A. 10-year bonds Your answer is correct.B. 80% stock ownership in a subsidiary C. 100% ownership in voting stock of a supplier D. None of the above
A. 10-year bonds
Chapter 10 AnAn United Trans ServiceUnited Trans Service jet costs $28,000,000 and is expected to fly 200,000,000 miles during its 12-year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels 32,000,000 miles the first year, how much depreciation should United Trans Service record under the units-of-production method? (Round the depreciation per unit to two decimal places.) A. $4,480,000 B. $2,333,333 C. $4,666,666 D. Cannot be determined from the data given
A. $4,480,000
Chapter 10 How should you record a capital expenditure? A. Debit an asset B. Debit capital C. Debit a liability D. Debit an expense
A. Debit an asset
Chapter 10 Which method almost always produces the most depreciation in the first year? A. Double-declining-balance Straight-line C. Units-of-production D. All produce the same depreciation in the first year.
A. Double-declining-balance
Chapter 15 Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified? A. Held-to-maturity investment B. Trading investment Your answer is correct.C. Significant interest investment D. Controlling interest investment
B. Trading investment
Chapter 14 Americo signed a 15-year note payable on January 1, 2016, of $1,500,000. The note requires annual principal payments each December 31 of $100,000 plus interest at 8%. The entry to record the annual payment on December 31, 2020, includes A. a debit to Interest Expense for $120,000. B. a debit to Interest Expense for $88,000. Your answer is correct.C. a credit to Notes Payable for $100,000. D. a credit to Cash of $220,000.
B. a debit to Interest Expense for $88,000.
Chapter 12 Partner withdrawals A. decrease partnership net income. B. decrease partnership capital. C. increase partnership liabilities. D. increase partnership capital.
B. decrease partnership capital
Chapter 13 Assume that a company paid $8 per share to purchase 2,000 shares of its $3 par common stock as treasury stock. A. increased total equity by $6,000. B. decreased total equity by $16,000. Your answer is correct.C. increased total equity by $16,000. D. decreased total equity by $6,000.
B. decreased total equity by $16,000.
Chapter 15 Putnam Co. purchased an available-for-sale stock investment on October 4 of the current year for $38,000. The market value of the stock investment at year-end is $34,500. What value will be reported in net income for the adjustment, if any? A. $34,500 B. $0 Your answer is correct.C. $(3,500) D. Not enough information is given to determine the amount included in net income.
B. $0
Chapter 10 Which method is used to compute depletion? A. Straight-line method B. Units-of-production method C. Double-declining-balance method D. Depletion method
B. Units-of-production method
Chapter 14 Daniels's bonds payable carry a stated interest rate of 5%, and the market rate of interest is 7%. The price of the Daniels's bonds will be at A. face value. B. par value. C. a discount. Your answer is correct.D. a premium.
C. a discount.
Chapter 15 If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold until the bond maturity date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a A. debit to Dividend Revenue, $2,500. B. credit to Cash, $2,500. C. credit to Interest Revenue, $2,500 Your answer is correct.D. debit to Long-term Investmentslong dash—Held-to-Maturity, $2,500.
C. credit to Interest Revenue, $2,500
Chapter 15 If a company owns 25% of the voting stock of Pink Co., dividends received will be A. credited to Dividend Revenue. B. credited to Cash. C. credited to Long-term Investments dash—Pink Co. Your answer is correct.D. debited to Long-term Investmentslong dash—Pink Co.
C. credited to Long-term Investments —Pink Co.
Chapter 16 Operating activities are most closely related to A. dividends and treasury stock. B. long-term liabilities and stockholders' equity. C. current assets and current liabilities. Your answer is correct.D. long-term assets.
C. current assets and current liabilities
Chapter 13 A small stock dividend A. increases Retained Earnings. B. decreases common stock. C. has no effect on total equity. Your answer is correct.D. Items a, b, and c are correct.
C. has no effect on total equity.
Chapter 17 Pacific Corporation reported the following financial statements: LOADING... (Click the icon to view the financial statements.) Pacific's rate of return on common stockholders' equity can be described as (Assume a rate of return on common stockholders' equity of 15% - 20% year after year is considered good in most industries.) A. normal. B. weak. C. strong. Your answer is correct. D. average.
C. strong.
Chapter 13 A company's own stock that it has issued and repurchased is called A. dividend stock. B. outstanding stock. C. treasury stock. Your answer is correct.D. issued stock.
C. treasury stock.
Chapter 16 Mountain Water Corp. issued common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded? A. Financing activities cash receipt, $28,000 B. Financing activities payment of note, $(28,000) C. Non-cash investing and financing activities, $28,000 Your answer is correct.D. Both a and b are correct.
C. Non-cash investing and financing activities, $28,000
Chapter 16 The main categories of cash flow activities are A. direct and indirect. B. non-cash investing and financing. C. operating, investing, and financing. Your answer is correct.D. current and long-term
C. operating, investing, and financing.
Chapter 13 The two basic sources of stockholders' equity are A. retained earnings and dividends. B. preferred and common. C. paid-in capital and retained earnings. Your answer is correct.D. assets and equity.
C. paid-in capital and retained earnings.
Chapter 10 Which cost is not recorded as part of the cost of a building? A. Concrete for the building's foundation B. Real estate commission paid to buy the building C. Annual building maintenance Your answer is correct. D. Construction materials and labor
C. Annual building maintenance
Chapter 13 Corporation has the following data: Net income $16,540 Preferred dividends 8,800 Average common stockholders' equity 86,000 BrookeBrooke's rate of return on common stockholders' equity is A. 19% B. 53% C. 29% D. 9%
D. 9%
Chapter 11 The employer is responsible for which of the following payroll taxes? A. Federal and state unemployment taxes B. 6.2% FICAlong dash—OASDI tax C. 1.45% FICAlong dash—Medicare tax D. All of the above
D. All of the above
Chapter 12 Which characteristic identifies a limited liability company? A. Members have limited personal liability. B. Members can actively participate in the management of the business. C. The LLC can elect not to pay business income tax. D. All of the above
D. All of the above
Chapter 12 The book value of the non-cash assets of the Upper HTP partnership is $ $175,000. In liquidation, the partnership sells the non-cash assets for $235,000. Partners HTP split profits equally. How should the partnership account for the sale of the non-cash assets? A. Debit cash for $235,000 B. Credit the non-cash assets for $175,000 C. Increase each of the partners' capital accounts by $20,000 D. All of the above
D. All of the above
Chapter 12 Ackers and Becker form a partnership. Ackers contributes $20,000 cash and merchandise inventory with a current market value of $50,000. Becker contributes $6,500 in cash and land with a current market value of $18,000 (cost of $3,000). Which of the following is correct? A. Becker, Capital is credited for $9,500. B. Becker receives a bonus of $18,000 from Ackers. C. Becker, Capital is debited for $9,500. D. Becker, Capital is credited for $24,500.
D. Becker, Capital is credited for $24,500.
Chapter 17 Freedom Corporation reported the following financial statements: Vertical analysis of Freedom's balance sheet for 2017 would report A. a 19% increase in Cash. B. a current ratio of 1.00. C. inventory turnover of 8 times. D. Cash as 9.42% of total assets.
D. Cash as 9.42% of total assets.
Chapter 17 Liberty Corporation reported the following financial statements: Which statement best describes Liberty's acid-test ratio for 2017? A Less than 1 Your answer is correct. B. Equal to 1 C. Greater than 1 D. None of the above
A Less than 1
Chapter 13 Suppose Home Value FurnitureHome Value Furniture issued 200,000 shares of &0.05 par common stock at $5 per share. Which journal entry correctly records the issuance of this stock? A. Cash 1,000,000 Common Stock—$0.05 Par Value 10,000 Paid-In Capital in Excess of Par-Common 990,000 Your answer is correct.B. Common Stock—$0.05 Par Value 1,000,000 Cash 1,000,000 C. Cash 1,000,000 Common Stock—$0.05 Par Value 1,000,000 D. Common Stock—$0.05 Par Value 1,000,000 Cash 10,000 Paid-In Capital in Excess of Par-Common 990,000
A. Cash 1,000,000 Common Stock—$0.05 Par Value 10,000 Paid-In Capital in Excess of Par-Common 990,000
Chapter 12 The partnership of Williams and Davis splits profits 3 divided by 3/5 to Williams and 2 divided by 2/5 to Davis. There is no provision for losses. The partnership has a net loss of $250,000. What is Davis's share of the loss? A. $100,000 B. $250,000 C. $150,000 D. Cannot be determined because the loss-sharing ratio is not given.
A. $100,000
Chapter 15 Haven Co. purchased a trading investment on December 11 of the current year for $55,000. The market value of the stock investment at year-end is $59,500. What value will be reported in net income for the adjustment, if any? A. $4,500 Your answer is correct.B. $(4,500) C. $ 55,000 D. $ 59,500
A. $4,500
Chapter 13 Winston Corporation has 11,000 shares of 88%, $5 par cumulative preferred stock and 51,000 shares of common stock outstanding. Winston declared no dividends in 2015 and had no dividends in arrears prior to 2015. In 2016, Winston declares a total dividend of $52,000. How much of the dividends go to the common stockholders? A. $43,200 Your answer is correct.B. $52,000 C. $47,600 D. None; it all goes to preferred stockholders.
A. $43,200
Chapter 14 Alan Smith Fitness Gym has $700,000 of 20-year bonds payable outstanding. These bonds had a discount of $42,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is A. $679,000. Your answer is correct.B. $721,000. C. $700,000. D. $658,000.
A. $679,000.
Chapter 11 and Associates reported the following amounts on its 20162016 income statement: Year Ended December 31, 2016 Net income $22,950 Income tax expense 6,600 Interest expense 3,000 What was McDaniel's times-interest-earned ratio for 2016? A. 10.85 B. 8.65 C. 7.65 D. 9.85
A. 10.85
Chapter 17 Trust Corporation reported the following financial statements: Assume all sales are on credit. During 2017, Trust's days' sales in receivables ratio was (amounts rounded). (Use a 365-day year. Round interim calculations to three decimal places and round your final answer to the nearest whole number.) A. 24 days. Your answer is correct B. 27 days. C. 25 days. D. 23 days.
A. 24 days.
Chapter 11 Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company makes timely principal payments of $5,000 each year at December 31 plus interest at 8%. Which of the following is true? A. After the first payment is made, $5,000 would be shown as the current portion due on the long-term note. B. After the first payment is made, the company owes $15,000 plus three years' interest. C. After the first payment, $15,000 would be shown as a long-term liability. D. Just before the last payment is made, $5,000 will appear as a long-term liability on the balance sheet.
A. After the first payment is made, $5,000 would be shown as the current portion due on the long-term note.
Chapter 14 Paragon, Inc.'s trial balance shows$100,000 face value of bonds with a discount balance of $2,500. The bonds mature in 10 years. How will the bonds be presented on the balance sheet? A. Bonds payable $97,500 (net of $2,500 discount) will be listed as a long-term liability. Your answer is correct. B. Bonds payable $100,000 will be listed as a long-term liability. A $2,500 discount on bonds payable will be listed as a contra current liability. C. Bonds payable $100,000 will be listed as a long-term liability. A $2,500 discount on bonds payable will be listed as a current liability. D. Bonds payable $100,000 will be listed as a long-term liability.
A. Bonds payable $97,500 (net of $2,500 discount) will be listed as a long-term liability. Your answer is correct.
Chapter 12 Steve and Montel admit Magean to their partnership, with Magean paying $52,000 more than the book value of her equity in the new business. Steve and Montel have no formal profit-and-loss-sharing agreement. What effect does admitting Magean to the partnership have on the capital balances of Steve and Montel question mark Montel? A. Credit the SteveSteve and Montel capital accounts for $26,000 each. B. Cannot be determined because there's no profit-and-loss sharing ratio. C. Credit the SteveSteve and Montel capital accounts for $52,000 each. D. Debit the SteveSteve and Montel capital accounts for $26,000 each.
A. Credit the SteveSteve and Montel capital accounts for $26,000 each.
Chapter 16 If accrued liabilities increased during the year, which of the following is correct when using a spreadsheet to complete the statement of cash flows (indirect method)? A. Increase in Accrued Liabilities would be debited Your answer is correct.B. Accrued Liabilities would be debited C. Increase in Accrued Liabilities would be credited D. None of the above is correct.
A. Increase in Accrued Liabilities would be debited
Chapter 11 Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swell's attorney advises that the likelihood the customer will win is remote. GAAP requires at a minimum that this contingent liability be A. No disclosure is required. B. recorded as a journal entry, as well as disclosed in the footnotes. C. disclosed in the footnotes. D. disclosed in the footnotes, with ranges of potential loss.
A. No disclosure is required.
Chapter 12 Which financial statement shows the changes in each partner's capital account for a specific period of time? A. Statement of Partners' Equity B. Income Statement C. Statement of Owner's Equity D. Balance Sheet
A. Statement of Partners' Equity
Chapter 16 Hobby Gas Station earned net income of $55,000 after deducting depreciation of $6,000 and all other expenses. Current assets decreased by $5,000, and current liabilities increased by $7,000. How much was Hobby Gas Station's cash provided by operating activities (indirect method)? A. $37,000 B. $73,000 Your answer is correct.C. $47,000 D. $63,000
B. $73,000
Chapter 15 Amini Company reported the following information on its financial statements Total Assets, December 31, 2016 $460,000 Total Assets, December 31, 2017 620,000 For Year Ended December 31, 2017: Interest Expense $18,000 Net Income 90,000 What is Amini's rate of return on total assets? A. 17.4% B. 20.0% C. 23.5% D. None of the above
B. 20.0%
Chapter 17 Liberty Corporation reported the following financial statements: Liberty's inventory turnover during 2017 was (amounts rounded) A. 6 times. B. 5 times. Your answer is correct. C. 7 times. D. not determinable from the data given.
B. 5 times.
Chapter 15 Best Appliances owns 90% of the voting stock of Wratchet, Inc. Which of the following is true? A. The financial statements of Best would be consolidated into Wratchet. B. Best would be considered the parent entity. Your answer is correct.C. Wratchet would be considered the parent entity. D. Both a and c are correct.
B. Best would be considered the parent entity.
Chapter 16 Which item does not appear on a statement of cash flows prepared by the indirect method? A. Gain on sale of land B. Collections from customers Your answer is correct.C. Net income D. Depreciation expense
B. Collections from customers
Chapter 16 The Plant Assets account and Accumulated Depreciation—Plant Assets account of Vacation Club show the following: Vacation Club sold plant assets at a $13,000 loss. Where on the statement of cash flows should Vacation Club report the sale of plant assets? How much should the business report for the sale? A. Investing cash flows—cash receipt of$46,000 B. Investing cash flows—cash receipt of $33,000 Your answer is correct.C. Investing cash flows—cash receipt of $59,000 D. Financing cash flows—cash receipt of $ 46,000
B. Investing cash flows—cash receipt of $33,000
Chapter 12 Allen retires from the partnership of James, Nelson, and Allen. The partners share profits and losses in the ratio of 3:2:5, respectively. AllenAllen's capital balance is $17,000, and he receives $22,000 in final settlement. What is the effect on the capital accounts of James and Nelson? A. James' capital decreases by $5,000. B. James' capital decreases by $3,000. C. Nelson's capital decreases by $5,000. D. James capital increases by $3,000.
B. James' capital decreases by $3,000.
Chapter 12 Which characteristic identifies a general partnership? A. Unlimited life B. No business income tax C. Limited personal liability D. All of the above
B. No business income tax
Chapter 13 Conner Health Foods has 20,000 shares of $3 par common stock outstanding, which were issued at $10 per share. Conner also has a deficit balance in Retained Earnings of $81,000. How much is Conner's total stockholders' equity? A. $60,000 B. $200,000 C. $119,000 Your answer is correct.D. $ 281,000
C. $119,000
Chapter 11 An employee has year-to-date earnings of $114,500. The employee's gross pay for the next pay period is $6,300. If the FICAlong dash—OASDI is 6.26.2% and the wage base is $117,000, how much--FICAlong dash—OASDI tax will be withheld from the employee's pay? (Answer is rounded to whole dollar.) A. $265 B. $91 C. $155 D. $ 391
C. $155
Chapter 14 Sarah Jackson Antiques issued its 8%, 20-year bonds payable at a price of $266,940 (face value is $300,000). The company uses the straight-line amortization method for the bond discount or premium. Interest expense for each year is (Round your answer to the nearest whole dollar.) A. $24,000. B. $21,355. C. $25,653. Your answer is correct.D. $22,347.
C. $25,653.
Chapter 11 Belair Elecric (BEBE) owed Estimated Warranty Payable of $1,400 at the end of 2015. During 2016, BEBE made sales of $130,000 and expects product warranties to cost the company 55% of the sales. During 2016, BEBE paid $2,800 for warranties. What is BEBE's Estimated Warranty Payable at the end of 2016? A. $2,800 B. $7,900 C. $5,100 D. $ 6,500
C. $5,100
Chapter 16 Bakugon Furniture Center had accounts receivable of $28,000 at the beginning of the year and $57,000 at year-end. Revenue for the year totaled $113,000. How much cash did the business collect from customers? A. $56,000 B. $142,000 C. $84,000 Your answer is correct.D. $ 113,000
C. $84,000
Chapter 15 A company invested $45,000 in Yale Co. stock. The investment represented 5% of the voting stock of Yale Co. If the Yale Co. stock investment paid dividends, what account would be credited? A. Interest Revenue B. Long-term Investmentslong dash—Available-for-Sale C. Dividend Revenue Your answer is correct.D. Cash
C. Dividend Revenue
Chapter 13 Which characteristic of a corporation is a disadvantage? A. Mutual agency B. Limited liability C. Double taxation Your answer is correct.D. None are disadvantages.
C. Double taxation
Chapter 15 Bendi Corp. purchased 1,000 shares of Kala Corp. for $16 per share. The investment represents 5% ownership, and Bendi holds the investment as an available-for-sale investment. The fair value at year-end is $15 per share. Assuming no other transactions occurred where would the $1 per share difference be reported on the year-end financial statements? A. Retained Earnings B. Unrealized Holding Gain—AFS C. Other Comprehensive Income Your answer is correct.D. Both b and c are correct.
C. Other Comprehensive Income
Chapter 11 A company sells $140,000 (selling price) of goods and collects sales tax of 66%. What current liability does the sale create? A. Sales revenue of $148,400 B. Unearned revenue of $8,400 C. Sales tax payable of $8,400 D. None; the company collected cash up front.
C. Sales tax payable of $8,400
The debt to equity ratio is calculated as A. Total liabilities / Total assets. B. Total assets / Total equity. C. Total liabilities / Total equity. Your answer is correct.D. Current liabilities / Total equity.
C. Total liabilities / Total equity.
Chapter 12 CharlesCharles pays $ 30 comma 000$30,000 to StevenSteven to acquire StevenSteven's $ 15 comma 000$15,000 interest in a partnership. The journal entry to record this transaction is Date Accounts and Explanation Debit Credit A. Charles, Capital 30,000 Steven, Capital 30,000 B. Charles, Capital 15,000 Steven, Capital 15,000 C. Steven, Capital 30,000 Charles, Capital 30,000 D. Steven, Capital 15,000 Charles, Capital 15,000
D. Steven, Capital 15,000 Charles, Capital 15,000
Chapter 16 Systern, Inc. expects net cash flow from operating activities to be $100,000, and the company plans purchases of equipment of $73,000 and repurchases of stock of $16,000. What is Systern's free cash flow? A. $100,000 B. $73,000 C. $11,000 D. $ 27,000
D. $ 27,000
Chapter 14 Trent Robinson wishes to have $70,000 in seven years. If he can earn annual interest of 2%, how much must he invest today? A. $65,310 B. $29,200 C. $80,430 D. $ 60,970
D. $ 60,970
Chapter 10 ExclusiveExclusive Company reported beginning and ending total assets of $28,000 and $30,000, respectively. Its net sales for the year were $27,840. What was ExclusiveExclusive's asset turnover ratio? A. 0.99 B. 1.04 C. 0.93 D. 0.96
D. 0.96
Chapter 17 Trust Corporation reported the following financial statements: LOADING... (Click the icon to view the financial statements.) Which measure expresses Trust's times-interest-earned ratio? (amounts rounded) Review Only LOADING... Click the icon to see the Worked Solution. A. 26.8% B. 54 times C. 45.3% D. 64 times
D. 64 times
Chapter 14 Vasquez issued a $400,000 face value, 8%, 20-year bond at 95. Which of the following is the correct journal entry to record the retirement of the bond at maturity? A. Date Accounts and Explanation Debit Credit Cash 380,000 Bonds Payable 380,000 B. Date Accounts and Explanation Debit Credit Cash 400,000 Bonds Payable 400,000 C. Date Accounts and Explanation Debit Credit Bonds Payable 380,000 Cash 380,000 D. Date Accounts and Explanation Debit Credit Bonds Payable 400,000 Cash 400,000
D. Date Accounts and Explanation Debit Credit Bonds Payable 400,000 Cash 400,000
Chapter 14 SandersSanders Corporation issued $ 480 comma 000$480,000 of 44%, 10-year bonds payable at a price of 9494. The market interest rate at the date of issuance was 55%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is Review Only LOADING... Click the icon to see the Worked Solution. A. Date Accounts and Explanation Debit Credit Interest Expense 10,752 Discount on Bonds Payable 1,152 Cash 9,600 B. Date Accounts and Explanation Debit Credit Interest Expense 13,680 Discount on Bonds Payable 1,680 Cash 12,000 C. Date Accounts and Explanation Debit Credit Interest Expense 13,152 Discount on Bonds Payable 1,152 Cash 12,000 D. Date Accounts and Explanation Debit Credit Interest Expense 11,280 Discount on Bonds Payable 1,680 Cash 9,600
D. Date Accounts and Explanation Debit Credit Interest Expense 11,280 Discount on Bonds Payable 1,680 Cash 9,600
Chapter 10 A truck costs $70,000 when new and has accumulated depreciation of $60,000. Suppose FrankFrank Towing exchanges the truck for a new truck. The new truck has a market value of $69,000, and FrankFrank pays cash of $45,000. Assume the exchange has commercial substance. What is the result of this exchange A. No gain or loss B. Gain of $59,000 C. Loss of $14,000 D. Gain of $ 14,000
D. Gain of $ 14,000
Chapter 10 Which intangible asset is recorded only as part of the acquisition of another company? A. Copyright B. Patent C. Franchise D. Goodwill
D. Goodwill
Chapter 17 Pacific Corporation reported the following financial statements: LOADING... (Click the icon to view the financial statements.) Horizontal analysis of Pacific's balance sheet for 2017 would report A. Cash as 9.23% of total assets. B. a current ratio of 1.05. C. inventory turnover of 8 times. D. a 19% increase in Cash and Cash Equivalents.
D. a 19% increase in Cash and Cash Equivalents.
Chapter 11 Corporation expects to pay a 44% bonus on net income after deducting the bonus. Assume the corporation reports net income of $153,920 before the calculation of the bonus. The journal entry to record the accrued bonus includes A. a credit to Cash, $6,157. B. a debit to Employee Bonus Payable, $5,920. C. a debit to Employee Bonus Expense, $6,157. D. a credit to Employee Bonus Payable,$5,920.
D. a credit to Employee Bonus Payable,$5,920.
Chapter 13 Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at A. its book value. B. the par value of the stock given. C. a value assigned by the board of directors. D. its market value.
D. its market value.
Chapter 17 In order for an item to be reported in the extraordinary items section of the income statement, it must be A. unusual. B. infrequent. C. unusual or infrequent. D. unusual and infrequent.
D. unusual and infrequent.
Chapter 17 What part of the Liberty's annual report is written by the company and could present a biased view of financial conditions and results? A. Auditor's Report B. Balance Sheet C. Income Statement D. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
D. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
Chapter 16 The purposes of the statement of cash flows are to A. predict future cash flows. B. determine ability to pay debts and dividends. C. evaluate management decisions. D. All of the above
D. All of the above
Chapter 10 A copy machine cost $43,000 when new and has accumulated depreciation of $29,000. Suppose ABC Printing junks this machine, receiving nothing. What is the result of the disposal transaction A. No gain or loss B. Loss of $26,000 C. Gain of $14,000 D. Loss of $14,000
D. Loss of $14,000
Chapter 10 A copy machine cost $39,000 when new and has accumulated depreciation of $33,000. Suppose Print and Photo CenterPrint and Photo Center sold the machine for $6,000. What is the result of this disposal transaction? A. Loss of $6,000 B. Loss of $33,000 C. Gain of $6,000 D. No gain or loss
D. No gain or loss
