15._______ If a company wishes to become incorporated, to which branch of government must they submit the paperwork? a. Seattle municipal government b. the Federal Government in Washington D.C. c. a state government such as Washington State d. SCCC Accounting Dept.

16.______ Lacey Corporation issued 20,000 shares of its $1.00 par common stock for $3.00 per share. What effect does this issuance of stock have on net income for Lacey Corporation? a. increase of $40,000 b. increase of $20,000 c. increase of $60,000 d. no effect on net income

17._______ On an installment loan, each payment you make consists of interest expense and principal reduction. Which item declines in amount on each payment over the life of the loan? a. the principal portion of the payment declines b. the interest portion of the payment declines c. the payment itself declines d. your credit rating declines

18._______ Bob borrows $5,000 for 3 years with annual payments. If Bobs annual payment turns out to be $2,010.53, what interest rate is Bob paying on the loan? (Use PV table) a. 4% b. 6% c. 8% d. 10% e. 12%

19._______ Alice borrows $3,000 at 8% for 3 years, with semiannual payments. Which combination of interest rate and periods should Alice use in amortizing the loan? a. use 8% for 3 periods b. use 3% for 8 periods c. use 8% for 6 periods d. use 4% for 6 periods e. use 16% for 6 periods

20._______ Johnson sells equipment with original cost of $12,000 and accumulated depreciation of $9,000. If the equipment is sold for $5,000, Johnson will record a a. loss of $2,000 b. gain of $2,000 c. neither a gain nor a loss d. a gain of $5,000

21._______ On a cash flow statement, how would a decrease in accounts receivable be treated in the operations section, using the indirect method? a. add to net income b. subtract from net income c. no effect on the operations section d. it should be ignored

22._______ Which of the following dates requires no journal entry? A. declaration date b. record date c. payment date d. all of these require entries

23._______ Diane earns $15 per hour and overtime hours (above 40) are compensated at 1.5 times the regular rate. If Diane works for 44 hours, her gross pay would be: a. $600 b. $690 c. $990 d. none of these

24._______ Retained Earnings isa. a big pile of cash b. the net income earned for this year only c. the accumulated income minus the dividends since the corporation began d. net income this year minus this years dividends

25._______ What is the present value of a $5,000 annuity for 3 years, discounted at 6%? A. $13,365 b. $300 c. $15,000 d. $4198