12 accounting 1 questions

1. Which one of the following is a current liability?

Select one:

A. Bond payable

B. A credit guarantee provided for a supplier

C. Accounts receivable

D. FICA taxes payable

2. A corporation:

Select one:

A. Has an owner's capital account for each owner, whereas a partnership does not

B. Is subject to federal income taxes on its earnings, whereas a partnership is not

C. Is less costly to organize than a partnership

D. Is subject to less regulation and supervision than a partnership

3. On September 1, 2016, Maibritt Equipment signed a 12-month, 9% interest bearing note payable for $400,000.

Assuming Maibritt maintains its books on a calendar year basis, the amount of interest expense that should be reported in the 2017 income statement for this note would be:

Select one:

A. $36,000

B. $12,000

C. $24,000

D. $16,000

4. If bonds are issued at 103, this means that:

Select one:

A. The bonds sold at a discount.

B. A $1,000 bond sold for $103.

C. The bond rate of interest is 10.3% of the market rate of interest.

D. A $2,000 bond sold for $2,060.00.

5. On September 1, 2016, Caroline Companys balance sheet indicates there are 1,200,000 shares of $60 par value common shares in the Common Stock account and $9,000,000 in the Additional Paid-in Capital account. There are 2,000,000 shares authorized. On September 2, Caroline splits its stock 2 for 1.

How Caroline shares of common stock are issued and outstanding immediately after the stock split?

Select one:

A. 8,000,000

B. 600,000

C. 2,400,000

D. 2,800,000

6. Treasury stock is:

Select one:

A. A corporation's own stock that has been retired

B. Stock of other corporations owned by a corporation

C. A U.S. government security

D. A corporation's own stock that has been reacquired and held for future use

7. Jarrow, Inc. records sales at amounts that include sales tax. During June, total sales of $360,400, including 6% sales tax, were recorded.

The sales tax liability for June is:

Select one:

A. $ 21,624

B. $ 20,000

C. $338,776

D. $340,000

8. Sunshine Company has the following monthly payroll for June, 2016:

Total salaries	$108,000
Salaries subject to FICA taxes (6.2% + 1.45%)	108,000
Salaries subject to FUTA (0.8%) and state unemployment taxes (2.7%)	28,000
Income taxes withheld	9,700

The total employer's payroll tax expense for this period is:

Select one:

A. $ 9,242

B. $18,942

C. $10,476

D. $ 1,558

9. How many payment periods are in a 6-year, 8% bond with an effective interest rate of 6%, and paid semiannually?

Select one:

A. 12

B. 6

C. 48

D. 3

10. When only one class of stock is issued by a corporation, it should be termed:

Select one:

A. Authorized stock

B. Treasury stock

C. Preferred stock

D. Common stock

11. Federal unemployment taxes are:

Select one:

A. Levied against both employee and employer

B. Levied against only the employer

C. Levied against only the employee

D. None of the above

12. A statement of stockholders' equity:

Select one:

A. Replaces the income statement as a basic financial statement

B. Presents an analysis of all components of stockholders' equity for the accounting period

C. May be presented in a single-step or multiple-step format

D. None of the above