1 of 50 Investments in debt securities, such as bonds, may be classified as eith

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1 of 50

Investments in debt securities, such as bonds, may be classified as either current or long-term assets.

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2 of 50

Marketable securities that are held until the due date of the securities are

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3 of 50

Which of the following business types is most common as measured by the amount of business transacted?

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4 of 50

Depreciation is based upon cost, useful life, and salvage value.

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5 of 50

Because depreciation is not cash-based, it is NOT reported in the direct method of the statement of cash flows.

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6 of 50

A company has a petty cash fund of $200. At the end of the month, $6.41 remains in the fund along with $190.96 in various receipts. The journal entry to replenish the fund would show a debit(s) to

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7 of 50

A 12-month, 8% note dated August 1, 2013 for $5,000 would have accrued interest payable on December 31, 2013 of $166.67.

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8 of 50

Warranty expense must be estimated and matched to revenues.

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9 of 50

Upgrading the RAM on a computer would be an example of a(n)

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10 of 50

The formula for the quick ratio is quick assets divided by noncurrent assets.

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11 of 50

Which of the following are considered to be legal entities that exist separate and distinct from their owners?

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12 of 50

Patents and copyrights can be seen, held, or touched.

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13 of 50

Which of the following would be considered part of the cost of machinery and equipment?

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14 of 50

The business or person that signs the note and promises to pay the required amount is called the payee.

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15 of 50

Conley Company has a petty cash fund of $300. At the end of the month, $42.38 remains in the fund along with $260.75 in various receipts. The journal entry to replenish the fund would be debit

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16 of 50

Neither land nor land improvements are depreciated.

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17 of 50

Using a 365-day year, the maturity value of a 180-day note for $2,700 at 9% annual interest is (rounded to the nearest cent)

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18 of 50

On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year. The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar) to

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19 of 50

Allied Industries purchased a piece of equipment for $65,000 with an estimated salvage value of $15,000 on January 1. Its estimated life is five years. To the nearest dollar, what is the equipment's depreciation using double-declining-balance for year two?

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20 of 50

Payroll is also called employee compensation and can consist of many parts.

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21 of 50

The number of shares of stock that a corporation is given the right to sell is called

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22 of 50

Which of the following would NOT be considered part of the cost of machinery and equipment?

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23 of 50

Equipment costing $118,000 has accumulated depreciation of $92,000. The equipment is a trade-in for new equipment costing $187,000. If the trade-in value received for the old equipment is $30,000, the journal entry to record this transaction is to

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24 of 50

Liberty Company has declared a $40,000 cash dividend to shareholders. The company has 5,000 shares of $20-par, 6% preferred stock and 10,000 shares of $15-par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $12,000 in arrears?

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25 of 50

In accounting, what is the meaning of capitalized?

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26 of 50

Interest is an expense to the debtor and income to the creditor.

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27 of 50

Cash consists of anything that a bank will take as a deposit.

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28 of 50

The cost of long-term assets must be allocated to an expense as the asset is used up.

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29 of 50

The process of acquiring merchandise from a supplier begins with the

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30 of 50

Appleway Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method will be

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31 of 50

Book value is depreciable cost minus accumulated depreciation.

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32 of 50

The records of Inland Equipment showed a net loss of $30,000, depreciation expense of $25,000, and an increase in supplies on hand of $5,000. The amount of net cash flow from operating activities using the indirect method is

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33 of 50

Retained earnings represent internally generated capital.

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34 of 50

A company issues 15,000 shares of its $25 par common stock for $29 per share. The amount to be debited to Cash is

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35 of 50

On September 1, 2012, Juno Corp. lent $2,400 to Bill Askins on a six-month 8% promissory note. The journal entry to record the note for Juno Corp. would be to:

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36 of 50

Separation of duties is essential for internal control over cash receipts and cash payments.

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37 of 50

Which of the following would indicate poor internal control over accounts receivable?

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38 of 50

Limited liability means that the stockholders of a corporation share a personal liability for all debts of the corporation.

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39 of 50

Accumulated depletion is a(n)

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40 of 50

Allied Industries reported net income of $52,000, depreciation expenses of $13,000, a gain on a land sale of $3,000, and a decrease in accounts receivable of $1,500. Under the indirect method, net cash flows from operations is

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41 of 50

The portion of stockholders' equity that can be used for dividends is referred to as legal capital.

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42 of 50

Franklin Industries had total assets of $560,000; total liabilities of $250,000; and total stockholders' equity of $310,000. Franklin Industries debt ratio is

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43 of 50

Financial analysis is used to predict the future of a business.

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44 of 50

Online banking should NOT be used to reconcile the bank account.

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45 of 50

Costs of testing machinery or equipment before they are used would be included in the price of the machinery or the equipment.

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46 of 50

There are two methods for accounting for uncollectible receivables.

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47 of 50

Assets that are NOT expected to provide benefits for a number of accounting periods are called

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48 of 50

The allowance method of accounting for bad debts is required by GAAP because of the materiality principle.

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49 of 50

A stock dividend affects total stockholders' equity.

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50 of 50

Realized gains and losses only occur when the security is sold for more or less than the original cost.

True False

Explanation / Answer

1) True - Investment can be classifieds as current or long term assets depend upon the purpose for it invested if it is invested with a purpose to sell next year the current otherwise Long term.

2) Held -to - maturity securities

3) Corporations

4) True

5) False

6) various expenses for $190.96 and Cash Short of $2.63

7) True ( 5,000 X 8% X 5/12)

8) True

9) Betterment

10) False ( quick assets/ Current liabilities)

11) Corporation

12) False ( they are intangible asset)

13) Insurance after purchase

14) false ( payer)

15) various expenses, $260.75, credit Cash Over for $3.13, and credit Cash for $257.62

16) True

17) $2,819.84. ( 2,700 + ( 2,700 X 9% X 180/365)

18) debit Interest expense, $6,971; debit Mortgage payable, $764; credit Cash, $7,735.

19) $ 15,600

20) True

21) authorized stock.

22) Repair & maaintenance after Startup

23) debit Equipment (New) for $187,000, debit Accumulated Depreciation – Equipment for $92,000, credit Equipment (Old) for $118,000, and credit Cash for $161,000.

24) $18,000 preferred, $22,000 common

25) Capitalized means that an asset account is debited (increased) for the cost of an asset.

Please ask other 26 to 50 searately by mentioning to please provide answer for 26 to 50 below your question. answers for 1 to 25 have been provided.

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