6.Goodwill is an intangible asset that arises when:

a. a company sells a really popular product

b. the company wins the Presidents Award

c. Mr. ONeill brings a box of Krispy Kremes to class

d. one company purchases another company, paying more for it than the value of its net assets

7.Leonard purchased a delivery truck and hired a local artist $2,500 to paint his company name on the side of the truck.

Which account would be debited for this cost?

A. debit Art Expense

b. debit Advertising Expense

c. debit the Truck account

d. debit Repairs Expense

8. William sold equipment and made a loss of $3,000. Would the loss be a debit item or a credit item, and on which financial statement would the loss appear?

A. credit the loss and report on the balance sheet

b. debit the loss and report on the income statement

c. debit the loss and report on the balance sheet

d. none of these

9. Who pays unemployment taxes?

A. employee only

b. employer only

c. employer and employee

d. neither employer nor employee

10. Elgin borrows $10,000 on a 3-month 6% note. The interest expense Elgin will pay at maturity on this note will be:

a. $60

b. $600

c. $6,000

d. $150