Final Exam 101 -- MyAccountingLab Quizzes 9-13 Flashcards
What type of account is Discount on Bonds Payable and what is its normal balance?
contra liability, debit
Bond carrying value equals Bonds Payable
Minus Discount on bonds payable
Plus Premium on bonds payable
Moment’s Fashions has a debt that has been properly reported as a long-term liability up to the present (2012). Some of this debt comes due in 2012. If moment’s continues to report the current position as a long-term liability, the effect will be to
overstate the current ratio
Failure to accrue interest expense results in
an overstatement of net income and an understatement of liabilities
What kind of account is Unearned Revenueq
Liability account
For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to
the time period between purchases of merchandise and the conversion of this merchandise back to cash
see question #7 chapter 9 quiz
true
An end-of-period adjusting entry that debits Unearned Revenue most likely will creidt
a revenue
see question #9 chapter 9 quiz
true
the payment of the face amount of a bond on its maturity date regraded as a what kind of activity
Financing acitivity
Which of the following classifications represents the Most shares of common stock?
authorized shares
Par Value
is an arbitrary amount that establishes the legal capital for each share
see question #3 chapter 10 quiz
true
*** I’m sure you will see stuff like this, so see question #4 chapter 10 quiz
true
*** I’m sure you will see stuff like this, so see question #4 chapter 10 quiz
true
see question #6 chapter 10 quiz
3-for-1 stock split facts - not math
true
Which of the following is a characteristic of a corporation?
limited liability of stockholders
*** I’m sure you will see stuff like this, so see question #8 chapter 10 quiz
true
Stockholders are eligible for a dividend if they own the stock on the date of
record
the paid-in capital portion of stockholders’ equity includes
common stock
preferred stock
paid-in capital in excess of par value
(check this – question #10, chapter 10 quiz)
An auditor report by independent accountatnts
gives investors assurance that the company’s financial statements conform to GAAP
what is most closely related to prior-period adjustments
retained earnings
see question #3 chapter 11 quiz
true
discontinued operations are a separate category on the income statement
true
Deferred Tax Liability is usually
a Long-term account
reported on the Balance Sheet
What is the best source of income for a corporation
continuing operations
GAAP governs the form and content of the financial statements
true
foreign-currency transaction gains and losses are reported on the
Income Statements
see question #9 chapter 11 quiz
true
Earnings Per Share (EPS) is reported for
discontinued operations
continuing operations
extraordinary items
(NOT- comprehensive income - NOT)
On an indirect method statement of cash flows, an increase in a prepaid insurance would be
deducted from net income
see question #2 chapter 12 quiz
true
what appears on a statement of cash flows - indirect method
depreciation expense
NOT THE FOLLOWING
collections from customers – NOT
payments to suppliers – NOT
cash receipt of interest revenue – NOT
The sale of inventory for cash is reported on the statement of cash flows under
operating activities
On an indirect method statement of cash flows, an increase in accounts payable would be
added to net income in the operating activities section
On an indirect method statement of cash flows, a gain on the sale of plan assets would be
deducted from net income in the operating activities section
Paying off bonds payable is reported on the statement of cash flows under
Financing activities
Selling equipment is reported on the statement of cash flows under
investing activiites
Paying cash dividends is a/an
financing activity
Receiving cash dividends is a/an
operating activity
see question #10 chapter 12 quiz
true
see question #1 chapter 13 quiz
true
see question #2 chapter 13 quiz
true
see question #3 chapter 13 quiz
true
see question #4 chapter 13 quiz
true
see question #5 chapter 13 quiz
true
see question #6 chapter 13 quiz
true
see question #7 chapter 13 quiz
true
see question #8 chapter 13 quiz
true
see question #9 chapter 13 quiz
true
see question #10 chapter 13 quiz
true
