Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers?

The business checks customers' credit ratings.

The business pays a processing fee.

The business bears the risk of nonpayment by the customer.

The business bears the responsibility of collecting cash from the customer.

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Question 41

2 pts

The maturity value of a note is the ________.

face amount of the note

principal amount times the interest rate

principal amount plus interest due at maturity

principal amount minus interest due at maturity

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Question 42

2 pts

Which of the following is an asset that represents distinctive identifications of a product or service?

trademark

franchise

copyright

license

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Question 43

2 pts

The gain or loss on the sale of a plant asset is determined by comparing market value of assets received with ________.

book value

residual value

original cost

salvage value

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Question 44

2 pts

Which of the following asset categories would include the cost of clearing land and removing unwanted buildings?

machinery and equipment

land

buildings

land improvements

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Question 45

2 pts

Which of the following statements about franchises is correct?

The acquisition cost of a franchise is always amortized over its legal life.

Franchises are privileges granted by a government to use public property in performing services.

The acquisition cost of a franchise cannot be amortized because its useful life cannot be determined.

Franchises are privileges granted by a business to sell goods or services under qualified conditions.

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Question 46

2 pts

Which of the following is included in the cost of a plant asset?

wages of workers who work use the asset in normal operations

regular repair and maintenance costs

replacement of damaged parts of the asset

amounts paid to make the asset ready for its intended use

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Question 47

2 pts

Which of the following is included in the cost of land?

cost of outdoor lighting

cost of paving

brokerage commission

cost of fencing

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Question 48

2 pts

At the maturity of a note payable, a borrower will pay ________.

the principal minus interest

the interest amount only

the principal plus interest

the principal amount only

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Question 49

2 pts

Which of the following is true of good internal controls over payroll?

Hiring and firing employees should not be separated from accounting and from disbursing paychecks.

Accounting for payroll should be separate from hiring and firing of employees.

Disbursement of paychecks should not be separate from the function of maintaining payroll records.

Cash receipts from customers should be separated from the accounting for accounts receivable.

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Question 50

2 pts

On April 1, 2017, Planet Services received $7,400 in advance of performing the services from a customer for three months of service - April, May and June. What would be the journal entry to adjust the accounts at the end of May? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

Debit Service Revenue $4,933, and credit Accounts Receivable $4,933.

Debit Unearned Revenue $7,400 , and credit Service Revenue $7,400.

Debit Service Revenue $2,467, and credit Unearned Revenue $2,467.

Debit Unearned Revenue $4,933, and credit Service Revenue $4,933.

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Question 51

2 pts

Regarding gross and net pay, which of the following statements is correct?

For most businesses, gross pay equals net pay.

Gross pay minus all deductions such as income tax withheld equals net pay.

Employers are required to deposit net pay into the employee's bank account.

Net pay represents the total salaries and wages expense to the employer.

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Question 52

2 pts

Which of the following is a characteristic of a current liability?

It creates a present obligation for future payment of cash or services.

It is an avoidable obligation.

It occurs because of a future transaction or event.

It cannot be settled with services.

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Question 53

2 pts

The reason investors buy bonds is to ________.

exercise voting rights in a company

own controlling interest in the company

earn interest

receive dividend payments

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Question 54

2 pts

The date on which the principal amount is repaid to the bondholder is known as the ________.

interest date

issuing date

installment date

maturity date

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Question 55

2 pts

When bonds are retired at maturity ________.

the entry to retire the bonds may include a gain or loss on retirement of bonds

the bondholders are paid the the face value plus the unamortized premium or less the unamortized discount

the carrying value equals the face value plus the unamortized premium or less the unamortized discount

the carrying value always equals the face value