Question 8

The unexpired cost of a plant asset is referred to as its

		depreciable cost.
		carrying value.
		accumulated depreciation.
		original cost.

7 points

Question 9

The cost of a long-term asset is expensed

		in the period in which it is sold.
		in the period in which it is acquired.
		as the asset benefits the company.
		when it is paid for.

7 points

Question 10

On January 2, 2014, Lionel Company issued $40,000 of notes payable, of which $10,000 is due on January 2 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

		Current Liabilities, $40,000.
		Current Liabilities, $10,000; Long-Term Liabilities, $30,000.
		Long-Term Liabilities, $40,000.
		Current Liabilities, $30,000; Long-Term Liabilities, $10,000.

7 points

Question 11

Current liabilities are debts that are expected to be satisfied within

		one year or the normal operating cycle, whichever is shorter.
		one year or the normal operating cycle, whichever is longer.
		one year.
		the normal operating cycle.

7 points

Question 12

What would be the adjusting entry for a note payable whose interest is not included in the face amount of the note?

		Debit Interest Receivable and credit Interest Income.
		Debit Interest Expense and credit Cash.
		Debit Interest Expense and credit Interest Payable.
		Debit Cash and credit Notes Payable.

7 points

Question 13

An employee has gross earnings of $1,200 and withholdings of $91.80 for Social Security and Medicare taxes and $120 for income taxes. The employer pays $91.80 for Social Security and Medicare taxes, $9.60 for FUTA, and $64.80 for SUTA. The total cost of this employee to the employer is

		$1,301.40
		$1,200.00
		$1,366.20
		$1,578.00