Answer the following 20 questions please.

Question 31

Traylor Beauty Supply is in the business of selling hair care and other beauty products. It recently sold an old piece of equipment to Shaw Company for an amount more than what it had originally paid. Traylor should record a(an) _____ on the sale of the equipment.

Select one:

a. expense

b. loss

c. revenue

d. gross profit

e. gain

Question 32

Janus Corporation purchases all of the outstanding stock of Paula Company for $500,000. The net assets of Paula have a fair value of $350,000 which includes a copyright with a book value of $6,000 and a fair value of $80,000. Determine the amount of goodwill to be reported on consolidated financial statements on the date of purchase?

Select one:

a. $156,000

b. $144,000

c. $74,000

d. $70,000

e. $150,000

Question 33

A company's creditors are those who:

Select one:

a. are eligible to receive dividends declared by the company.

b. have purchased the company's inventory.

c. have invested in the company's shares.

d. the company have lent money.

e. have lent the company money.

Question 34

Who elects a corporation's board of directors?

Select one:

a. Stockholders

b. Employees

c. Creditor

d. Government

e. Management

Question 35

Charlie Corporation purchased 2,000 shares of Robbins Company for $5 per share on October 15, 2017 and accounts for it as an available-for-sale security. On December 31, 2017, Robbins' stock was selling for $8 per share. On November 8, 2018, Charlie sold all of its shares of Robbins for $7 per share. Which of the following would be the amount credited to the Investment in Available-for-Securities account on November 8, 2018?

Select one:

a. $16,000

b. $10,000

c. $2,000

d. $1,000

e. $14,000

Question 36

Which of the following is an intangible asset?

Select one:

a. Franchise

b. Accounts Receivable

c. Retained Earnings

d. Equipment

e. Accounts Payable

Question 37

_____ is defined as the anticipated sales price of the item reduced by the estimated costs to complete the item and any estimated costs needed to make the sale.

Select one:

a. Replacement cost

b. Estimated original price

c. Net realizable value

d. Market value

e. Selling price

Question 38

Flanders Company sells capital stock of $4,500. Which of the following correctly identifies the accounts and their movements for this transaction?

Select one:

a. Cash increases by $4,500; Capital Stock increases by $4,500.

b. Cash increases by $4,500; Note Payable increases by $4,500.

c. Cash increases by $4,500; Capital Stock decreases by $4,500.

d. Capital Stock decreases by $4,500; Note Payable increases by $4,500.

e. Cash decreases by $4,500; Capital Stock decreases by $4,500.

Question 39

Assuming a proprietorship, partnership, and corporation earns equal amount of income and it is distributed evenly among owners, the amount collected by government toward tax will be:

Select one:

a. least for partnership.

b. equal for all three entities.

c. highest for partnership.

d. highest for corporation.

e. highest for proprietorship.

Question 40

What type of an account is accumulated depreciation?

Select one:

a. Liability

b. Contra asset

c. Expense

d. Equity

e. Loss

Question 41

When a perpetual inventory system is in use, all additions and reductions are monitored in the _____ T-account.

Select one:

a. inventory

b. perpetual purchases

c. purchases

d. accounts payable

e. assembly of inventory

Question 42

Who is responsible for the development of effective internal control systems in a company?

Select one:

a. The management

b. The creditors

c. The auditor

d. The stockholders

e. The government

Question 43

Chris Company prepays insurance for the month of February and records it by debiting prepaid insurance and crediting cash. At the end of February, Chris' accountant debits rent expense and credits cash. Which of the following statements is true?

Select one:

a. Assets are overstated

b. Net Income is overstated

c. Prepaid Insurance is overstated

d. Assets are understated

e. Expenses are understated

Question 44

A company ends Year One with 100,000 shares of common stock and 30,000 shares of preferred stock outstanding. Net income for the year is reported as $400,000. During the year, the company paid a $1 per share cash dividend on its common stock and a $2 per share cash dividend on its preferred stock. The number of preferred shares did not change during the year. The number of common shares at the beginning of the year was 80,000 and an additional 20,000 shares were issued on July 1. Determine the company's basic earnings per share.

Select one:

a. $4.44 per share

b. $5.00 per share

c. $4.00 per share

d. $3.78 per share

e. $3.84 per share

Question 45

Yates Corporation issued 400 shares of $1 par value common stock for $5 per share. Yates' accountant credited common stock for $2,000. Which of the following statements is true of this transaction?

Select one:

a. Yates retained earnings is understated.

b. Yates' stockholders' equity is overstated.

c. Yates' assets are overstated.

d. Yates' stockholders' equity is correctly stated.

e. Yates' common stock is understated.

Question 46

On January 1, 2013, Opie Corporation issues $200,000 in term bonds with a stated rate of interest of 7% and an effective rate of interest of 8%. The term of the bonds is 6 years and interest is paid every June 30 and December 31. Determine the balance in the Bonds Payable account on June 30, 2013.

Select one:

a. $200,000

b. $191,240

c. $191,889

d. $190,615

e. $190,000

Question 47

Who pays auditor's remuneration?

Select one:

a. The group of investors and creditors

b. The PCAOB

c. The SEC

d. The AICPA

e. The reporting company

Question 48

In October, Janus Corporation received a payment in advance from a customer for work to be performed in November. To record this, Janus' accountant debited Cash and credited Revenue. Which of the following is true?

Select one:

a. Unearned revenue is overstated

b. Assets are overstated

c. Cash is understated

d. Revenue is understated

e. Liabilities are understated

Question 49

Which of the following is reported as an asset?

Select one:

a. Salaries paid for the current year

b. Insurance expense paid for next year

c. Income tax paid for the current year

d. Dividends paid during the year

e. Rent paid for last year

Question 50

Which of the following organizations produces accounting standards for state and local governments in the U.S.?

Select one:

a. The GASB

b. The IASB

c. The EITF

d. The FASB

e. The SEC