Acc final

Question 1

The amount of stock that may be issued according to the corporation’s chatter is referred to as the

Answer 1

Authorized stock

Question 2

The shares of issued stock equals

Answer 2

Outstanding plus treasury stock

Question 3

The date on which a cash dividend becomes a binding legal obligation is on the:

Answer 3

deceleration date

Question 4

A current liability is a debt than can be paid:

Answer 4

Within a year

Question 5

Which of the following is an appropriate general journal entry to record the decleration of cash dividends?

Answer 5

debit dividends, credit dividend payable

Question 6

Cash flow from operating activities, as reported on the statement of cash flows under the indirect method, would include

Answer 6

Net Income

Question 7

If Norben Company issues 6000 shares of $5 par value common stock for 210000, the account:

Answer 7

Paid in capital in excess of par value will be credited for 180000

Question 8

If the market interest rate for a bond is higher than the standard rate, the bond will sell at

Answer 8

A Discount

Question 9

A corporation has the following account balances: common stock, $1 par value. 80000; Paid in Capital in Excess of Par Value, 27000000, Based on this information, the:

Answer 9

number of shares issued is 80000

Question 10

Sales Taxes collected by a retailer are recorded by

Answer 10

Crediting sales taxes payable

Question 11

If common stock is issued for an amount greater than par value, the excess should be credited to

Answer 11

Paid-in capital in excess of par value

Question 12

The current portion of long-term debt should

Answer 12

be reclassified as a current liability

Question 13

The statement of cash flows:

Answer 13

Summarizes the operating, financing, and investing actives of an entity

Question 14

Unearned rent Revenue :

Answer 14

is reported as a current liability

Question 15

McGoff company deposits 20,000 in a fund at the end of each year for 5 years. The fund pays interest of 4% compounded annually. the balance in the fund at the end of 5 years is computed by multiplying:

Answer 15

20,000 by the future value of an annuity factor

Question 16

look at number 19 on review

Answer 16

OK

Question 17

Liabilites are classified on the balance sheet as:

Answer 17

Current or long term liability

Question 18

If the marekt rate of interest is 10% a 10,000, 12%, 10 year bond that pays interest annually would sell at an amount

Answer 18

Greater than face value

Question 19

Dividends in arrears on cumulative preferred stock:

Answer 19

Must be paid before common stock holders can receive a dividend

Question 20

Treasury Stock is :

Answer 20

A corporations own stock, which has been reacquired and held for future use

Question 21

A 100,000, 6%, 5 year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which of the following period interest combinations?

Answer 21

20 interest periods. 1.5% interest

Question 22

Peninsula Company reported net income of 290,000 for the year. During the year, accounts receivable increased by 21,000, accounts payable decreased by 9000 and depreciation expense of 45000 was recorded. Net Cash provided by operating activities for the year is

Answer 22

305,000

Question 23

Bonds with a face value of 500,000 and a quoted price of 102.25 have a selling price of

Answer 23

511,250

Question 24

The category that is generally considered to be the best measure of a companys ability to continues as a going concern is

Answer 24

Cash flows from operating expenses

Question 25

Starting with net income and adjusting it for items affects reported net income but didn’t effect cash:

Answer 25

Indirect method

Question 26

Look over question 29

Answer 26

OK

Question 27

Logan Corporation issues 70,000 shares of 50 per value preferred stock for cash at 60 per share. The entry to record the transaction will consist of a debit to cash for 42,000,000 and a credit to

Answer 27

preferred stock for 3.5 mil and (paid in excess preferred of 700k)

Question 28

The interest charged on a 300,000 note payable at the rate of 6% on a 90 day note would be:

Answer 28

4500

Question 29

The following totals for the month of April were taken from the payroll records of Metz Company
salaries-90,000
FICA-6885

Answer 29

Answer: debit to salaries and wages expense

Question 30

On the dividend record date:

Answer 30

no entry is required

Question 31

What is the total stockholder’s equity based on the following account balances: common stock 2.3 mil, paid in capital, 120K, net earnings 57k, treasury stock 60k

Answer 31

2,930,000

Question 32

A cash register tape shows cash sales of 8,000 and sales taxes of 400. The journal entry to record the information is

Answer 32

debit cash 8400, credit sales revenue 8000, sales tax payable 400

Question 33

Lantz company purchased 2500 shares of its own previously issued 10 par common stock or 62500

Answer 33

Kaplan’s total stockholders equity decreased by 62500

Question 34

Moss county bank agrees to lend the sadiki brick company $500000 on January 1. Sadowski Brick Company signs a $500000, 6%, 9 month note. What is the adjusting entry required if Sadowski Brick Company prepares finical statement of June

Answer 34

Debit to interest expense and credit to interest payable

Question 35

Bonds with a face value of 600,000 and a quoted price of 98.5

Answer 35

selling price is 591,000