66 Which of the following is one logical rationale for making a short term investment Retirement savings The market is on an upward trend Ability to accept the unpredictability of the stock market Need for liquidity 67 If a company purchases a 5 year bond with a face value of $75,000 for $74,000, resulting in a discount of $1,000, accounting rules require which of the following happen The discount is expensed in the year of purchase The discount is amortized over the life of the bond The bond is adjusted to fair value annually The bond investment is recorded at $75,000 68 CBD Company's income statement reported $111,000 of pre tax net income A review of the accounts revealed two errors Sales revenue of $27,000 was not accrued and supplies expense of $9,300 was recorded as $3,900 What income should be recorded $78,600 $143,400 $89,400 $132,600 69 The income tax reported on a company's income statement is $83,000 The company's taxable income is $87,000 Which of the following must the company record Income tax expense of $4,000 Deferred income tax liability of $87,000 Income tax payable of $83,000 Deferred income tax asset of $4,000 70 What are the three important dates related to cash dividends, in order of occurrence Date of record, date of payment, date of declaration Date of declaration, date of record, date of payment Date of record, date of declaration, date of payment Date of declaration, date of payment, date of record 61 Sharon, the accountant for ALM Company, incorrectly debited a maintenance expense for a cost that should have been capitalized What is this error known as Counterbalancing error Error of principle Error of transposition Error of omission 62 At the beginning of the year, Ferber Company had retained earnings of $340,000 For the current year the company had revenues of $1 8 million, net income of $522,000 and paid dividends of $300,000 What are the retained earnings at the end of the year $1,162,000 $562,000 $1,840,000 $2,440,000 63 Using the account balances shown in the image below, calculate total Stockholders' Equity $553,000 $639,000 $425,000 $596,000 64 Which of the following is an example of a permanent difference between accounting and tax income Differences in depreciation from using alternate methods Bad debt expense deduction Installment sale revenue Municipal bond interest 65 Sheldon Company issues a 10 year $100,000 bond that pays coupon interest of $10,000 annually when the market interest rate is 9 The factors for an interest rate of 9 and a 10 year term are shown below What is the issue price of the bond $100,000 $42,200 $106,380 $64,180

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

66. Which of the following is one logical rationale for making a short-term investment? Retirement savings The market is on an upward trend Ability to

66.

Which of the following is one logical rationale for making a short-term investment?

Retirement savings
The market is on an upward trend
Ability to accept the unpredictability of the stock market
Need for liquidity

67.

If a company purchases a 5-year bond with a face value of $75,000 for $74,000, resulting in a discount of $1,000, accounting rules require which of the following happen?

The discount is expensed in the year of purchase
The discount is amortized over the life of the bond
The bond is adjusted to fair value annually
The bond investment is recorded at $75,000

68.

CBD Company's income statement reported $111,000 of pre-tax net income. A review of the accounts revealed two errors. Sales revenue of $27,000 was not accrued and supplies expense of $9,300 was recorded as $3,900. What income should be recorded?

$78,600
$143,400
$89,400
$132,600

69.

The income tax reported on a company's income statement is $83,000. The company's taxable income is $87,000. Which of the following must the company record?

Income tax expense of $4,000
Deferred income tax liability of $87,000
Income tax payable of $83,000
Deferred income tax asset of $4,000

70.

What are the three important dates related to cash dividends, in order of occurrence?

Date of record, date of payment, date of declaration
Date of declaration, date of record, date of payment
Date of record, date of declaration, date of payment
Date of declaration, date of payment, date of record

61.

Sharon, the accountant for ALM Company, incorrectly debited a maintenance expense for a cost that should have been capitalized. What is this error known as?

Counterbalancing error
Error of principle
Error of transposition
Error of omission

62.

At the beginning of the year, Ferber Company had retained earnings of $340,000. For the current year the company had revenues of $1.8 million, net income of $522,000 and paid dividends of $300,000. What are the retained earnings at the end of the year?

$1,162,000
$562,000
$1,840,000
$2,440,000

63.

Using the account balances shown in the image below, calculate total Stockholders' Equity.

$553,000
$639,000
$425,000
$596,000

64.

Which of the following is an example of a permanent difference between accounting and tax income?

Differences in depreciation from using alternate methods
Bad debt expense deduction
Installment sale revenue
Municipal bond interest

65.

Sheldon Company issues a 10-year $100,000 bond that pays coupon interest of $10,000 annually when the market interest rate is 9%. The factors for an interest rate of 9% and a 10-year term are shown below. What is the issue price of the bond?