Cash equivalents are

	very liquid and carry high risk.
	very liquid and carry little risk.
	not liquid and carry little risk.
	not liquid and carry high risk.

Question

14 of 35

Cesario Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method will be

	$35,500.
	$33,350.
	$36,250.
	$31,250.

Question

15 of 35

A bank statement shows the

	book errors as of a specific date.
	ending bank balance as of a specific date.
	reconciled balance as of a specific date.
	ending book balance as of a specific date.

Question

16 of 35

During the month, Northwest Electric paid $582 to settle warranty claims. Northwest uses an estimated warranty account. The journal entry to record the payment would have been

	debit Warranty expense, $582; credit Cash, $582.
	debit Warranty expense, $582; credit Estimated Warranty payable, $582.
	debit Estimated warranty payable, $582; credit Cash, $582.
	debit Estimated warranty payable, 582; credit Warranty expense, $582.

Question

17 of 35

A journal entry for the sale of $10 par-common stock for $18 per share would include a

	credit to Paid-In Capital in Excess of ParCommon Stock.
	credit to Cash.
	debit to Common Stock.
	debit to Paid-In Capital in Excess of ParCommon Stock.

Question

18 of 35

The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be

	debit Cash $21,000; credit Common Stock $18,000; credit Paid-in Capital in Excess of Stated Value$3,000.
	debit Cash $21,000; credit Common Stock $21,000.
	debit Cash $18,000; debit Paid-in Capital in Excess of Stated Value$3,000; credit Common Stock $21,000.
	debit Cash $18,000; credit Common Stock $18,000.

Question

19 of 35

Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is

	44.6%.
	28.7%.
	80.6%.
	55.4%.

Question

20 of 35

S&C Roofing had sales on account of $28,500, which were subject to state sales tax of 9%. The entry to record the sales would be to

	debit Accounts Receivable, $28,500; debit Sales tax payable, $2,565; credit Sales revenue, $31,065.
	debit Accounts Receivable, $28,500; credit Sales revenue, $28,500.
	debit Accounts Receivable, $31,065; credit Sales revenue, $28,500; credit Sales tax payable, $2,565.
	debit Accounts Receivable, $31,065; credit Sale revenue, $31,065.

Question

21 of 35

Taylor Fish Farm's Stockholders' Equity section includes the following information:

Preferred Stock	$13,000
Paid-in Capital in Excess of Par-Preferred	3,400
Common Stock	17,000
Paid-in Capital in Excess of Par-Common	2,100
Retained Earnings	9,100

What was the total selling price of the common stock?

	$15,100
	$19,100
	$13,000
	$16,400

Question

22 of 35

The type of stock that does NOT carry paid-in capital in excess of par is called

	par stock.
	stated value stock.
	no-par stock.
	outstanding stock.

Question

23 of 35

The adjusting entry to record incurred but not yet paid employee wages includes

	a debit to Cash.
	a debit to Wages Payable.
	a debit to Wages Expense.
	a debit to Wages Earned.

Question

24 of 35

A $150,000 bond issue sold at 93.8 will cost

	whatever cost is negotiated.
	$150,000.
	$140,700.
	$159,300.

Question

25 of 35

By NOT accruing warranty expense

	reported expenses will be understated, and net income will be understated.
	reported expenses will be overstated, and reported liabilities will be understated.
	reported liabilities will be understated, and net income will be overstated.
	reported liabilities will be overstated, and net income will be understated.