multiple choice

DU A = = = = = 0 Font Paragraph 36. If $3,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is a. $3,300,000 b. $3,000,000 c. $3,090,000 d. $2,910,000 37. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? a $2,500 loss b. $1,000 loss c. $2,500 gain d. $1,000 gain 38. The excess of issue price over par of common stock is termed an) a discount b. income c. deficit . d. premium 39. A partnership liquidation occurs when a. a new partner is admitted b. a partner dies c. the ownership interest of one partner is sold to a new partner d. the assets are sold, liabilities paid, and business operations terminated 40. A ten-year bond was issued at par for $150,000 cash. This transaction should be shown on a statement of cash flows under 2. investing activities financing activities c. noncash investing and financing activities d. operating activities 41. Which intangible assets are amortized over their useful life? 2 trademarks b goodwill c. patents d all of the above 42. The equity method of accounting for investments a requires a year-end adjustment to revalue the stock to lower of cost or market b. requires the investment to be reported at its original cost e requires the investment be increased by the reported net income of the investee d requires the investment be decreased by the reported net income of the investee 43. A characteristic of a fixed asset is that it is a intangible used in the operations of a business c. held for sale in the ordinary course of the business d none of the above 24 words Type here to search O RI 99. 9 Styles 44. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section 45. In regards to the shares of a corporation, which statement is not valid: a authorized shares may be greater than issued shares b. issued shares may be greater than outstanding shares c. outstanding shares may be greater than authorized, due to any treasury shares held d. treasury shares reduce the number of issued shares to determine outstanding shares 46. When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are a convertible bonds b.unsecured bonds c. debenture bonds d. callable bonds 47. The balance in Premium on Bonds Payable a. should be reported on the balance sheet as a deduction from the related bonds payable b. should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest method c. would be added to the related bonds payable on the balance sheet d. should be reported in the paid in capital section of the balance sheet 48. The excess of sales price of treasury stock over its cost should be credited to a Treasury Stock Receivable . Premium on Capital Stock c. Paid-In Capital from Sale of Treasury Stock d. Income from Sale of Treasury Stock 49. A corporation issues for cash $8,000,000 of 8%, 30-year bonds, interest payable semiannually. The amount received for the bonds will be a present value of 60 semiannual interest payments of $320,000, plus present value of 58,000,000 to be repaid in 30 years b. present value of 30 annual interest payments of $640,000 present value of 30 annual interest payments of 5640,000, plus present value of $8,000,000 to be repaid in 30 years d. present value of 58,000,000 to be repaid in 30 years, less present value of 60 semiannual interest payments of $320,000 Font 50. The following information is available from the current period financial statements: Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $140,000 28,000 16,000 21,000 The net cash flow from operating activities using the indirect method is a $131,000 b. $163,000 c. $107,000 d. $205,000 51. The relationship of $225,000 to $125,000, expressed as a ratio, is a 2.0 to 1 b. 1.8 to 1 c. 1.5 to 1 d 0.56 to 1 52. The Poe Corporation has a simple capital structure. Thaw company has 50.000 shares of common stock outstanding. Net income for the year was $142,000. Poe declared and paid preferred stock dividends of $16,000 during the year. Earnings per share for the year is a $3.16 b. $2.84 c. $2.52 d. $.32 53. A new machine with a purchase price of $94,000, with transportation costs of $8,000. installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of a $ 96,000 b. $108 000 C$102,000 d. $110,000 54. Pilgrim Company sells merchandise with a one year warranty. In 2020, sales consisted of 1,500 units. It is estimated that warranty repairs will average slo per unit sold, and 30% of the repairs will be made in 2020 and 70% of the repairs will be made in 2021. In the 2020 income statement, Pilgrim should show warranty expense of . $4,500 b. $10.500 c. $15.000 d $0 55. The percentage analysis of increases and decreases in individual items in comparative financial statements is called & vertical analysis b solvency analysis c. profitability analysis d horizontal analysis earch Styles 56. Which of the following assets is not included in the computation of the quick ratio? a. Inventory b. Marketable securities c. Accounts receivable d. Cash A company with working capital of $400,000 and a current ratio of 2.5 pays a $75,000 short-term liability. The amount of working capital immediately after payment is a $475,000 b. $325,000 c. $400,000 d. $75,000 58. When a corporation completes a 3-for-1 stock split a. the ownership interest of current stockholders is decreased b. the market price per share of the stock is decreased c. the par value per share is decreased d.bandc 59. When a new partner is admitted, this change in the ownership of a partnership results in a consolidation of the partnership b. liquidation of the partnership c. realization of the partnership d. dissolves the old partnership 60. The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be a debit Bonds Payable, credit Cash b. debit Cash and Discount on Bonds Payable, credit Bonds Payable c. debit Cash, credit Premium on Bonds Payable and Bonds Payable d. debit Cash, credit Bonds Payable 61. When using the Cost Method of accounting for equity Investments, the receipt of cash dividends a decreases the amount of the Dividend Revenue b. increases the amount of the Dividend Revenue C. decreases the amount of the Investment account d. increases the amount of the Investment account 62. The required form that is to be provided to the employee as well as to the Social Security Administration each year, showing an employee's earnings and taxes withheld is the a Employment Withholding Allowance Certificate (Form 940) b. Employer's Quarterly Federal Tax Return (Form 941) c. Wage and Tax Statement (Form W-2) d. Corporate Income Tax Return (Form 1120) 63. When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their book values on the partners' books prior to their being contributed to the partnership b. fair market value at the time of the contribution c. original costs to the partner contributing them d. assessed values for property tax purposes E s += 21 dew Ron - 1 A A Aa A Uab xxA P. A. AaBbCcDd 1 Normal . Paragraph Font 64. A building with a book value of $ 45,000 is sold for $50,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows: a an increase of $45,000 from investing activities b. an increase of $50,000 from investing activities and a deduction from net income of $5,000 c. an increase of $50,000 from investing activities d. an increase of $45,000 from investing activities and an addition to set income of $5,000 65. The numerator used to calculate accounts receivable turnover is a total sales b. net sales C. accounts receivable at year-end d. average accounts receivable 66. Which of the following listed below is generally the most useful in analyzing companies of different sizes a comparative statements b. common-sized financial statements c. price-level accounting d. audit report The liability for a dividend is recorded on which of the following dates? a. the date of record b. the date of payment c. the date of announcement d. the date of declaration 68. On the statement of cash flows, a $20,000 gain on the sale of fixed assets would be a added to set income in converting the net income reported on the income statement to cash flows from operating activities b. deducted from set income in converting the net income reported on the income statement to cash flows from operating activities c. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends d. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends 69. Which one of the following below should be added to net income in calculating set cash flow from operating activities using the indirect method? a again on the sale of land b. a decrease in accounts payable c an increase in accrued liabilities d. dividends paid on common stock 70. The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is a debit Vacation Pay Expense; credit Vacation Pay Payable b. debit Vacation Pay Payable, credit Vacation Pay Expense c. debit Salary Expense, credit Cash d. debit Salary Expense; credit Salaries Payable