Thẻ ghi nhớ: ACC101 NEW SP26 | Quizlet

Which of the following statements is true?

A. Interest on bonds is tax deductible.

B. Interest on bonds is not tax deductible.

C. Dividends to stockholders are tax deductible.

D. Bonds do not have to be repaid.

E. Bonds always increase return on equity.

A

Sales discounts under perpetual system:

A. Reduce inventory cost

B. Reduce revenue received

C. Increase sales revenue

D. Increase accounts receivable

B

What is the bond interest rate called, which is also known as the coupon rate or stated rate?

A. Market rate

B. Premium rate

C. Contract rate

D. Discount rate

E. Risk rate

C

A corporation's distribution 0! additional shares to its own stock to its stockholders Without the receipt cl any payment in return is caled a:

A. Stock dividend.

B. Stock subscription.

C. Premium on stock.

D. Discounton stock.

E. Treasury stock.

A

Which accounting principle is primarily supported by the lower of cost or market (LCM) rule?

A. Matching principle

B. Historical cost principle

C. Consistency principle

D. Conservatism principle

E. Revenue recognition principle

D

Shares of stock that have been issued by the corporation and are currently it the hands of investors are caled:

A. Authorized Stock

B. Treasury Stock

C. Selling (issuing) Stock

D. Outstanding Stock

E. No-Par Value Stock

D

If a bond has a contract rate of 8% on a $1,000 bond, how much annual interest will it pay?

A. $100.

B. $80.

C. $40.

D. $1,000.

E. $8.

B

What is the primary disadvantage of bond financing related to a company's return on equity?

A. Bonds increase the company's return on equity.

B. Bonds can decrease the company's return on equity if the company has lower income.

C. Bonds allow the company to withdraw dividends freely.

D. Bonds do not require interest payments.

E. Bonds reduce the company's equity investments.

B

What is the total preferred stock value on Dillon's balance sheet for the issuance of preferred stock at $100 par value for 50 shares?

A. $1,000.

B. $5,000.

C. $6,000.

D. $10,000.

E. $300,000.

B

A corporation issued 10,000 shares of its $5 par value common stock in exchange for equipment that has a market value of $120,000. The entry to record this transaction would include:

A. A debit to Common Stock for $50,000.

B. A debit to Land for $50,000.

C. A credit to Equipment for $50,000.

D. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $70,000.

E. A credit to Common Stock for $120,000.

D

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

A. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000.

B. A debit to Cash for $14,000.

C. A credit to Common Stock for $182,000.

D. A credit to Common Stock for $14,000.

E. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000.

D

Which statement about no-par value stock is correct?

A. It must have a stated value.

B. It cannot be legally issued in most states.

C. It is not assigned a value per share by the charter.

D. It requires a minimum dividend.

E. It is usually preferred stock.

C

The total value of the owners' stake in the corporation is best represented by:

A. Market Capitalization

B. Authorized Capital

C. Paid-In Capital

D. Retained Earnings

E. Stockholders' Equity

E

What is the primary purpose of a purchase discount?

A. To increase sales

B. To encourage prompt payment

C. To inflate revenue

D. To reduce cost of goods sold

E. To manage inventory levels

B

Which of the following statements regarding liabilities is not true?

A. A liability is a probable future payment of assets or services.

B. Unearned future wages to be paid to employees should be recorded as liabilities.

C. For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services.

D. Information about liabilities is more useful when the balance sheet identifies them as either current or long term.

E. Liabilities can involve uncertainty in whom to pay.

B

At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be: (Soạn độc quyền bởi Thủy Tiên)

a. $54,700

b. $49,700

c. $47,000

d. $64,500

e. $42,200

B (Collected $14,800 from customers on account:=>New balance: $52,000 - $14,800 = $37,200. Provided additional services to customers on account totaling $12,500=>New balance: $37,200 + $12,500 = $49,700. One customer paid $5,000 for services to be provided in the future=>Accounts receivable balance remains unchanged: $49,700) Học kỹ cách làm, có thể thay số.

When bonds are issued at a premium, the stated interest rate is:

A. Lower than the market rate.

B. Equal to the market rate.

C. Higher than the market rate.

D. Unrelated to the market rate.

E. Always zero.

C

Which of the following normally reduces retained earnings?

A. Net income earned during the year.

B. Declaration of cash dividends.

C. Issuance of additional common stock.

D. Stock split.

E. Sale of treasury stock above cost.

B

When a corporation issues par value stock at its par value, what is the primary effect on the company's

accounting equation?

A. Assets decrease and Equity increases.

B. Assets increase and Liabilities decrease.

C. Assets increase and Equity increases.

D. Liabilities increase and Equity decreases.

E. There is no change to the accounting equation.

C

What is the primary role of a registrar in a corporation?

A. To assist investors in trading company shares on the stock exchange.

B. To maintain a list of stockholders and handle dividend payments.

C. To issue physical stock certificates for all public companies.

D. To transfer shares between companies during mergers.

E. To manage the company's investment portfolio.

B

Which of the following is an advantage of the corporate form of organization?

A. Double taxation.

B. Limited liability of stockholders.

C. Mutual agency of owners.

D. Unlimited liability of owners.

E. Difficulty in raising capital.

B

Which of the following best describes "known liabilities"?

A. Obligations whose amounts and timing are uncertain.

B. Obligations created only through litigation.

C. Obligations that are measurable and certain, such as accounts payable or notes payable.

D. Obligations payable only at liquidation.

E. Obligations that require issuing stock.

C

If net income is $50,000 and dividends are $10,000, retained earnings will:

A. Increase by $40,000

B. Increase by $60,000

C. Decrease by $40,000

D. Decrease by $60,000

A

When ending inventory is overstated:

A. Net income is overstated

B. Net income is understated

C. COGS is overstated

D. Assets are understated

A

Perpetual system advantages include:

A. Real-time inventory tracking

B. Lower bookkeeping costs

C. Simpler periodic calculation

D. Ignoring cost of goods sold

A

On September 1, Hoa Binh Company borrows $10,000 from ACB Bank by signing a 60-day, 6% note. What is the correct journal entry to record the payment of the note at maturity?

A. Debit Notes Payable $10,000; Credit Cash $10,000.

B. Debit Notes Payable $10,000; Credit Interest Expense $100; Credit Cash $9,900.

C. Debit Notes Payable $10,000; Debit Interest Expense $100; Credit Cash $10,100.

D. Debit Interest Expense $100; Credit Notes Payable $10,100.

E. Debit Cash $10,100; Credit Notes Receivable $10,000; Credit Interest Revenue $100.

C

Stock that does not have a stated value in the corporate charter is referred to as:

A. Par Value Stock

B. Common Stock

C. Stated Value Stock

D. No-Par Value Stock

E. Preferred Stock

D

What is recorded when a corporation issues stock at a premium?

A. Paid-in capital in excess of par value is reported as revenue.

B. The excess amount over par value is listed under liabilities.

C. Paid-in capital in excess of par value is reported as part of equity.

D. The premium is recorded under operating expenses.

E. The premium is reported as income.

C

A company using a periodic inventory system had a beginning inventory of $20,000. Duing the period, they purchased merchandse worth $60,000. At the end of the period, the physical count of inventory was $15,000.

Calculate the cost at goods sold tor the perlod.

A. $75,000

B. $65,000

C. $60,000

D. $55,000

E. $15,000

B

All at the Following statements regarding long-term liabilities are true except?

A. Liabilities not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.

B. Long—term liabilities include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable.

C. Liabiities that do not have a fixed due date, but are payable on demand, are reported as lorg-term liabilities.

D. Long-lean liabilities can be reported on the balance sheet in a single total or in multiple categories.

E. A single liability can be divided between current and noncurrent sections on the balance sheet.

C

The following transactions occurred during July:

1. Received $900 cash for services provided to a customer during July.

2. Received $2,200 cash investment from Barbara Hanson, the owner of the business.

3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June.

4. Provided services to a customer on credit, $375.

5. Borrowed $6,000 from the bank by signing a promissory note.

6. Received $1,250 cash from a customer for services to be rendered next year.

What was the amount of revenue for July?

a. $ 900.

b. $ 1,275.

c. $ 2,525.

d. $ 3,275.

e. $11,100.

b (Total revenue for July = $900 + $375 = $1,275)

If assets are $365,000 and equity is $120,000, then liabilities are:

a. $120,000.

b. $245,000.

c. $365,000.

d. $485,000.

e. $610,000.

b ( liabilities = 365,000 - 120,000 = 245,000)

At the beginning of 2009, a company's balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner's Capital = $50,000. During 2009, the company reported revenues of $46,000 and expenses of $30,000. In addition, owner's withdrawals for the year totaled $20,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

a. $66,000.

b. $86,000.

c. $(4,000).

d. $46,000.

e. Cannot be determined from the information provided.

d (Net Income= 46,000 - 30,000 = 16,000

Ending Owner's Capital = 50,000 + 16,000 - 20,000 = 46,000)

A company has sales of $350,000, Account Receivable of 50,000 and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debts expense is

a. $350

b. $2,450.

c. $3,450.

d. $300

e. $530

b (Bad Debts Expense=0.7%×350,000=2,450)

A company has the following inventory information: Item A: Cost $12, Market $10; Item B: Cost $8, Market $9; Item C: Cost $15, Market $14. Using the lower of cost or market method, what is the total value of the inventory?

A. $34

B. $36

C. $37

D. $32

E. $39

D (Total inventory value = 10 + 8 + 14 = 32 )

A company sold merchandise on account for $15,000 with terms 3/10, n/30. The cost of the merchandise sold was $11,000. The customer paid within the discount period. What is the journal entry to record the receipt of payment?

a. Debit Cash $14,550, Credit Accounts Receivable $14,550

b. Debit Cash $15,000, Credit Sales Discounts $450, Credit Accounts Receivable $15,000

c. Debit Cash $14,550, Credit Sales Discounts $450, Credit Accounts Receivable $14,450

d. Debit Cash $14,550, Debit Sales Discounts $450, Credit Accounts Receivable $15,000 E. Debit Cash $15,000, Credit Accounts Receivable $15,000

d (Câu này xem kỹ cách làm, áp dụng các câu tương tự, khi đề đổi số liệu nha:

The discount is: 15,000 x 0.03 = 450

The amount received = 15,000 - 450 = 14,550

=>>Debit Cash $14,550

Debit Sales Discounts $450

Credit Accounts Receivable $15,000 )

A company issued 8%, 15-year bonds with a par value of $600,000 that pay interest semiannually. The current market rate is 8%. The journal entry to record each semiannual interest payment is:

A. Debit Bond Interest Expense $24,000; credit Cash $24,000.

B. Debit Bond Interest Expense $48,000; credit Cash 348,000.

C. Debit Bond Interest Payable $24,000; credit Cash $24,000.

D. Debit Bond Interest Expense $600,000; credit Cash $600,000.

E. No entry is needed.

A

The balance in Tee Tax Services' office supplies account on February 1 and February 28 was $1,200 and $375, respectively. If the office supplies expense for the month is $1,900, what amount of office supplies was purchased during February?

a. $1,075

b. $1,500

c. $1,525

d. $2,325

e. $3,100

a (Purchases = Ending Balance + Supplies Used - Beginning Balance= $375 + $1,900 - $1,200)

A company uses the perpetual inventory system and the LIFO method. The inventory records show the following data: Beginning inventory: 50 units at $18 each; Purchases: 100 units at $20 each; Sales: 120 units at $35 each. Calculate the gross profit using the LIFO method.

a. $1,400

b. $2,360

c. $1,840

d. $2,900

e. $4,200

c (Total COGS: $2,000 + $360 = $2,360

Sales Revenue: 120 units × $35 = $4,200

Gross Profit: $4,200 - $2,360 = $1,84)

A company uses the perpetual inventory system and the weighted average method. The inventory records show the following data: Beginning inventory: 150 units at $10 each; Purchases: 200 units at $12 each; Sales: 250 units. Calculate the cost of ending inventory using the weighted average method.

a. $1,120

b. $1,200

c. $1,502

d. $1,410

e. $1,114

e (Beginning inventory: 150 units × $10 = $1,500

Purchases: 200 units × $12 = $2,400

Total cost of inventory available:1,500 + 2,400 = 3,900

Total units available: 150 + 200 = 350

Weighted average cost per unit: 3,900 / 350 = 11.14

Units remaining after sales: 350 - 250 = 100

Ending inventory value: 100 x 11.14 = 1,114 )

Zed Bennett opened an art gallery and as a dealer completed these transactions:

1. Started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000.

2. Purchased $70 of office supplies on credit.

3. Paid $1,200 cash for the receptionist's salary.

4. Sold a painting for an artist and collected a $4,500 cash commission on the sale.

5. Completed an art appraisal and billed the client $200.

What was the balance of the cash account after these transactions were posted?

a. $12,230.

b. $12,430.

c. $43,300.

d. $43,430.

e. $61,430.

c (Cash balance: $38,800 + $4,500 = $43,300)

A company has the following account balances before closing entries are made: Service Revenue $100,000, Rent Expense $20,000, Salaries Expense $30,000, and Dividends $10,000. What is the closing entry for the expense accounts?

A. Debit income Summary $50,000; Credit Rent Expense $20,000, Credit Salaries Expense $30,000

B. Debit Income Summary $100,000; Credit Service Revenue $100,000

C. Debit Rent Expense 820,000, Debit Salaries Expense $30,000; Credit Income Summary $50,000

D. Debit Dividends $10,000; Credit Income Summary $10,000

E. Debit Income Summary $50,000; Credit Rent Expense $10,000, Credit Salaries Expense $40,000

A

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:

A. Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000.

B. Debit Common Dividends Payable $4,000; credit Cash $4,000.

C. Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500.

D. Debit Common Dividends Payable $4,500; credit Cash $4,500.

E. Debit Retained Earnings $10,000; credit Common Dividends Payable $10,000.

A

A company's board of directors votes to declare a cash dividend of $0.50 per share on its 24,000 common shares outstanding. The journal entry to record the payment of the cash dividend is:

A. Debit Dividend Expense $12,000; credit Cash $12,000.

B. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.

C. Debit Common Dividend Payable $12,000; credit Cash $12,000.

D. Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.

E. Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.

C

Justin Corporation uses a weighted-average perpetual inventory system.

August 2, 10 units were purchased at $12 per unit.

August 18, 15 units were purchased at $14 per unit.

August 29, 12 units were sold.

What was the amount of the cost of goods sold for this sale?

a. $148.00.

b. $150.50.

c. $158.40.

d. $210.00.

e. $330.00.

c (August 2 Purchase: 10 units × $12 = $120

August 18 Purchase: 15 units × $14 = $210

Weighted-Average Unit Cost = (210+120 )/(10 + 15) =13.2

=>>The COGS for the sale on August 29=13.2 x 12 =$158.4 )

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