1. (TCO 6) Which of the following is a natural resource?(Points : 3) Patents Timber Gas reserves both B and C

Question 2. 2. (TCO 6) The process of depreciating an asset over its useful life is an application of the _____ principle.(Points : 3)

full disclosure revenue recognition historical cost matching

Question 3. 3. (TCO 6) All of the following are classified as natural resources and are depleted except for(Points : 3)

land. timber. minerals. oil.

Question 4. 4. (TCO 6) When an investor owns between 20% and 50% of the outstanding stock of another company, the _____ method is used to account for stock investments.(Points : 3)

market value equity consolidated historical cost.

Question 5. 5. (TCO 6) The future value of 1 will always be(Points : 3)

equal to 1. greater than 1. less than 1. equal to the interest rate.

Question 6. 6. (TCO 6) A current liability is a debt that can reasonably be expected to be paid(Points : 3)

within 1 year or the company's normal operating cycle (if it is longer than 1 year). between 6 months and 18 months. out of cash on hand. out of current revenues.

Question 7. 7. (TCO 6) Failure to record an accrued liability causes a company to(Points : 3)

overstate income. overstate assets. understate liabilities. understate owners' equity.

Question 8. 8. (TCO 6) If bonds are issued at a discount, it means that the(Points : 3)

market interest rate is higher than the stated interest rate. market interest rate is lower than the stated interest rate. financial strength of the issuer is weak. bond is convertible.

Question 9. 9. (TCO 6) Bonds that mature at a single specified future date are called(Points : 3)

term bonds. coupon bonds. serial bonds. debentures.

Question 10.10. (TCO 6) A disadvantage of using bonds as a method of long-term financing is that(Points : 3)

interest must be paid regardless of earnings. interest expense is tax deductible. bond holders do not have voting rights. issuing bonds results in higher earnings per share.