Acct300 Business Accounting: Week 5 Quiz (Winter 2015)_20 MCQs

Acct300 Business Accounting Week 5 Quiz (Winter 2015)
Question 1 of 20The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:A. depletion.B. deferral.C. amortization.D. depreciation.
Question 2 of 20The market interest rate related to a bond is also called the:A. stated interest rate.B. effective interest rate.C. contract interest rate.D. straight-line rate.
Question 3 of 20A company sold office furniture costing $16,500 with accumulated depreciation of $14,000 for $1,800 cash. The entry to record the sale would include:A. a loss for $700.B. an increase in accumulated depreciation for $14,000.C. a total decrease in office furniture for $2,500.D. a decrease in cash for $1,800.
Question 4 of 20The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:A. depletion.B. deferral.C. amortization.D. depreciation.
Question 5 of 20Which of the following is not an intangible asset?A. GoodwillB. TrademarkC. CopyrightD. Long-term receivable
Question 6 of 20A bond is simply a form of an interest-bearing note.A. trueB. False
Question 7 of 20What options does a business have while financing its operations?A. Debt financingB. Equity financingC. Asset financingD. Both debt financing and equity financing
Question 8 of 20Expenditures made to extend an asset’s life are called revenue expenditures.A. TrueB. False
Question 9 of 20The exclusive right to use a certain name or symbol is called a:A. franchise.B. patent.C. trademark.D. copyright.
Question 10 of 20The accounting term depreciation measures:A. the decline in an asset’s market value.B. the amount of cash a company sets aside for asset replacement.C. the amount of asset cost allocated to expense over periods benefited.D. the anticipated loss if asset is sold in the used-asset market.
Question 11 of 20If paid-in capital in excess of par-preferred stock is $80,000, preferred stock is $500,000, paid-in capital in excess of par-common stock is $50,000, common stock is $1,000,000, and retained earnings is $230,000, the total stockholders’ equity is $1,860,000.A. TrueB. False
Question 12 of 20A current liability is a debt that is reasonable expected to be paid:A. between 6 months and 18 months.B. out of currently recognized revenues.C. within one year.D. out of cash currently on hand.
Question 13 of 20Which of the following is a reason to undergo a reverse stock split?A. To reduce the stock’s market price per share.B. To increase total stockholders’ equity.C. To reduce total stockholders’ equity.D. To increase the market value of the stock per share.
Question 14 of 20Stockholders’ equity:A. is usually equal to cash on hand.B. includes paid-in capital and total liabilities.C. includes retained earnings and paid-in capital.D. is shown on the income statement.
Question 15 of 20A current liability is a debt that is reasonable expected to be paid:A. between 6 months and 18 months.B. out of currently recognized revenues.C. within one year.D. out of cash currently on hand.
Question 16 of 20Fixed assets are reported at their book value on the balance sheet.A. TrueB. False
Question 17 of 20Which of the following expenditures would not be included in the cost of a fixed asset?A. Freight costsB. VandalismC. Sales taxesD. Surveying fees
Question 18 of 20The balance in Accumulated Depreciation account is deducted from the cost of fixed assets on the balance sheet.A. TrueB. False
Question 19 of 20For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?A.$5.00B.$2.50C.$6.00D.$3.00
Question 20 of 20Which of the following is a reason to undergo a reverse stock split?A. To reduce the stock’s market price per share.B. To increase total stockholders’ equity.C. To reduce total stockholders’ equity.D. To increase the market value of the stock per share.
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