Which of the following debit or credit entries are made when recording the disposal of equipment for a loss?

Multiple Choice

a) Credit to accumulated depreciation for the total depreciation accumulated to the date of disposal.

b) A credit to cash for the book value of the equipment.

c) A debit to a loss account for the difference between the equipments book value and the cash received on the sale.

d) A credit to the equipment account for the equipment's book value.

Which type of intangible asset does a company capitalize when the only costs incurred to date are research and development costs?

Multiple Choice

a) Franchise.

b) Patent.

c) Goodwill.

d) No intangible asset would be recorded.

Current liabilities:

Multiple Choice

a) Are due and payable within one year or the current operating cycle whichever is longer.

b) Includes the current portion of long-term debt.

c) Will require the future sacrifice of another asset or the creation of another liability.

d) All of the Above.

The price of a bond is equal to: Multiple Choice

a) The present value of the face amount of the bond only.

b) The future value of the face amount of the bond plus the future value of the stated interest payments.

c) The present value of the face amount of the bond plus the present value of the cash interest payments discounted at the market rate of interest.

d) The present value of the face amount of the bond plus the present value of the cash interest payments discounted at the stated rate of interest.