ACCT TEST (last!!!!!!!!!!)

The type of intangible asset related to the exclusive right to reproduce and sell a book or intellectual property is a _____. A) franchise B) copyright C) patent D) trademark

copyright

The expected value of an asset at the end of its useful life is known as ___________. A) book value B) market value C) residual value D) carrying value

residual value

Which of the following represents a privilege granted by a government to use public property in performing services? A) trademark B) franchise C) license D) goodwill

license

The date on which the principal amount is repaid to the bondholder is known as the _____. A) interest date B) installment date C) maturity rate D) issuing date

maturity rate

The interest rate on which cash payments to bondholders are based is the ______. A) discount rate B) market rate C) stated rate D) amortization rate

stated rate

Regarding impairment of intangible assets, which of the following statements is incorrect? A) If any impairment occurs, the company records a loss in the period in which the intangible asset was aquired B) Impairment occurs when the fair value of an intangible asset is less than the book value C) Intangible assets with an indefinite life are tested for impairment annually D) Intangible assets are impaired when there has been a permanent decline in the value of the asset

A) If any impairment occurs, the company records a loss in the period in which the intangible asset was aquired

Which of the following is true of a contingent liability? A) It is a potential liability that depends on a future event B) It is an actual liability that is difficult to estimate C) It is a liability resulting from a lawsuit settled in court D) It is an actual liability that depends on a past event

A) It is a potential liability that depends on a future event

Intangible assets ____. A) convey special rights from patents, copyrights, trademarks, and other creative works B) represent assets for which the market value cannot be determined C) are not recorded in the books because they have no physical substance D) All of the statements are correct

A) convey special rights from patents, copyrights, trademarks, and other creative works

Regarding the time value of money, which of the following statements is incorrect? A) present value is always greater than future value B) future value is the value of an investment at the end of a specific time frame C) the time value of money is recognition that money earns interest over time D) the time value of money affects bond prices

A) present value is always greater than future value

The statement of stockholders' equity ______. A) reports the number of shares and any changes during the year in preferred, common, and treasury stock B) is required to be presented along with the statement of retained earnings C) does not show the changes to the Retained Earnings account because that information is provided in the statement of retained earnings D) is not required by IFRS

A) reports the number of shares and any changes during the year in preferred, common, and treasury stock

Regarding net pay, which of the following statements is incorrect? A) the net pay amount is not important for accounting purposes B) net pay equals gross pay minus all deductions C) the amount of compensation that the employee actually takes home is net pay D) the employer either writes a paycheck to each employee for his or her net pay or directly deposits the employee's net pay into the employee's bank account

A) the net pay amount is not important for accounting purposes

Which of the following is a reason for a company to announce a stock split? A) to decrease the market price at which the stock is trading B) to reward investors C) to increase total stockholders' equity D) to provide the shareholders with something of value, when the company cannot afford a cash dividend

A) to decrease the market price at which the stock is trading

Which of the following occurs when a corporation distributes a stock dividend? A) Total liabilities would increase B) Total stockholders' equity would be unchanged C) Total assets would decrease D) Total stockholders' equity would increase

B) Total stockholders' equity would be unchanged

Which of the following is true of good internal controls over payroll? A) hiring and firing employees should not be separated from accounting and from disbursing paychecks B) accounting for payroll should be separate from hiring and firing of employees C) disbursement of paychecks should not be separate from the function of maintaining payroll records D) cash receipts from customers should be separated from the accounting for accounts receivable

B) accounting for payroll should be separate from hiring and firing of employees

Regarding gross and net pay, which of the following statements is correct? A) employers are required to deposit net pay into the employee's bank account B) gross pay minus all deductions such as income tax withheld equals net pay C) for most businesses, gross pay equals net pay D) net pay represents the total salaries and wages expense to the employer

B) gross pay minus all deductions such as income tax withheld equals net pay

Which of the following items should be amortized? A) tangible property, plant, and equipment, other than land B) patents, copyrights, trademarks C) goodwill D) natural resources

B) patents, copyrights, trademarks

Which of the following depreciation methods always allocates a higher amount of depreciation in earlier years than in later years? A) the straight-line method B) the double-declining-balance method C) the first-in, first-out method D) the units-of-production method

B) the double-declining-balance method

An asset is considered to be obsolete ______. A) only at the end of its useful life B) when a newer asset can perform the job more efficiently than the old asset can C) only when it wears out D) when it is fully depreciated

B) when a newer asset can perform the job more efficiently than the old asset can

The amount of income taxes _________. A) the corporation owes, but has not yet paid, is recorded as a debit to the Income Tax Payable account B) the corporation owes, but has not yet paid, is reported as a long-term liability on the balance sheet C) required by the federal government for a corporation is calculated on a Form 1120 D) is calculated on a Form 1040 for a corporation

C) required by the federal government for a corporation is calculated on a Form 1120

which of the following describes a secured bond? A) a bond that is not backed by specific assets B) a bond that matures in installments at regular intervals C) a bond that matures at one specified time D) a bond that is backed by issuer's specific assets

D) a bond that is backed by issuer's specific assets

Which of the following is included in the cost of a plant asset? A) regular repair and maintenance costs B) wages of workers who use the asset in normal operations C) replacement of damaged parts of the asset D) amounts paid to make the asset ready for its intended use

D) amounts paid to make the asset ready for its intended use

A fully depreciated plant asset _________. A) can no longer be used in the business B) is removed from the accounting records C) is no longer reported on the balance sheet D) can be discarded, sold, or exchanged for another plant asset

D) can be discarded, sold, or exchanged for another plant asset

Which of the following should be included in the cost of land? A) cost of installing signage B) cost to build sidewalks on the land C) cost of installing fences D) cost to clear the land of old buildings

D) cost to clear the land of old buildings

IFRS permits the presentation of plant assets at their fair market value because ______. A) financial statements users are indifferent as to how plant assets are presented B) fair market value is easier to compute than book value C) U.S. GAAP requires this presentation D) fair market value may be more relevant

D) fair market value may be more relevant

Which of the following best describes the appropriation of retained earnings? A) designating certain amounts of retained earnings for cash dividends that are required to be paid to shareholders B) setting cash aside for expansion C) limiting company transactions in order to boost earnings D) restricting part of retained earnings for expansion or contingencies

D) restricting part of retained earnings for expansion or contingencies

Which of the following actions will increase the Common STock account? A) stock split B) cash dividend C) purchase of treasury stock D) stock dividend declared and distributed

D) stock dividend declared and distributed

Which of the following taxes has a ceiling on the amount of annual earnings subject to tax? A) FICA - OASDI taxes B) FICA - Medicare taxes C) Sales tax D) federal income tax

FICA - OASDI taxes

Which of the following is an asset that represents distinctive identifications of a product or service? copyright, franchise, license, trademark

Trademark

A stream of equal cash payments made at equal time intervals is called a(n) ___________. A) future value B) compound interest C) annuity D) present value

annuity

Stock dividends are declared by the ______. A) stockholders of the company B) chief financial officer of the company C) chief executive officer of the company D) board of directors of the company

board of directors of the company

The gain or loss on the sale of a plant asset is determined by comparing the market value of assets received with the ______ of asset sold. A) book value B) original cost C) salvage value D) residual value

book value

Which of the following columns is typically included in a payroll register? A) Warranties Payable B) Sales Tax C) Direct Labor Hours Worked D) Current Period Earnings

current period earnings

Which of the following asset categories would include the cost of clearing land and removing unwanted buildings? A) land B) land improvements C) buildings D) machinery and equipment

land

When a bond is issued at a price higher than the face value, the difference is known as a _____. A) discount B) premium C) maturity value D) face value

premium

Cash received in advance of providing goods or performing services is recorded as _________. A) unearned revenue B) service revenue C) uncollected revenue D) accrued revenue

unearned revenue

________ is a pay amount stated at an hourly rate A) Bonus B) Commission C) Salary D) Wage

wage