Quia True/False Ch. 14
In order to make adjustments to federal income tax, you must first determine the net income before federal income tax expense
True
Most accounts needing adjustment at the end of a fiscal period have a related temporary account
True
The amount of federal income tax expense a corporation must pay is calculated using a tax rate table furnished by the IRS
True
The dividends account has a normal debit balance and is increased by a debit
True
The risk of uncollectible accounts should be recorded as an expense in the same account period that the revenue is earned.
True
Federal income tax is an expense of a corporation
True
A declared dividend is classified as an expense
False
Accounts Receivable is a contra account to its related asset account, Allowance for Uncollectible Accounts
False
Accumulated depreciation is the depreciation expense that has been recorded since the purchase of a current asset
False
Dividends are earnings retained by the corporation
False
During a fiscal period, the amount of merchandise on hand remains unchanged
False
Each unit of ownership in a corporation is known as a stock dividend.
False
General ledger account balances are changed when adjustments are entered on the work sheet
False
Many businesses use a percentage of total sales to estimate uncollectible accounts expense
False
Merchandise Inventory is an asset account with a normal credit balance
False
Owner's equity accounts for a corporation normally are listed under a major chart of accounts division title Operating Expenses
False
The adjustment for merchandise inventory is common for all businesses
False
The difference between an asset's account balance and its related contra account balance is called par value
False
The prepaid insurance account is adjusted to show the value of insurance that has been prepaid
False
The steps for preparing a work sheet are very different for proprietorship and corporations
False
The supplies-store account must be adjusted to show the expense of the supplies that are purchased during the year
False
When a corporation makes the quarterly payment of estimated federal income tax, the cash account is debited
False
When a declared divdend is paid, Dividends Payable is credited.
False
A board of directors distributes earnings of a corporation to its stockholders and declaring a dividend
True
A corporation's board of directors is elected by the stockholders
True
A stockholder is an owner of one or more shares of a corporation.
True
A work sheet is used to plan adjustments and summarize the information necessary to prepare financial statments
True
An amount earned by a corporation and yet distributed to stockholders is called retained earnings.
True
Assets that will be used for a number of years in the operation of a business are called plant assets
True
Depreciation accumulated each year of a plant asset's useful life.
True
