Question 1

Which of the following pairs of terms in the area of financial statement analysis are synonymous?

Accepted Answer

A)   Ratio - Trend
B)   Horizontal - Trend
C)   Vertical - Ratio
D)   Horizontal - RatioE) A) and C)
F) B) and C)

Question 2

The cost of intangible assets should be:

Accepted Answer

A)   amortized over the assets' estimated useful life, or its legal life, whichever is shorter.
B)   amortized over a period not exceeding 5 years.
C)   amortized over the assets' estimated useful life.
D)   charged to an expense account at acquisition.E) All of the above
F) B) and D)

Question 3

Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:

Accepted Answer

A)   loss on disposal of $40,000.
B)   gain on disposal of $40,000.
C)   loss on disposal of $10,000.
D)   gain on disposal of $10,000.E) B) and C)
F) A) and B)

Question 4

If the market rate of interest is lower than the stated rate, bonds will sell at an amount:

Accepted Answer

A)   equal to face value.
B)   not determinable from the given information.
C)   lower than face value.
D)   higher than face value.E) A) and B)
F) All of the above

Question 5

In a period of rising prices, the inventory method that results in the lowest income tax payment is:

Accepted Answer

A)   LIFO.
B)   FIFO.
C)   average cost.
D)   specific identification.E) All of the above
F) C) and D)

Question 6

The Discount on Bonds Payable account:

Accepted Answer

A)   is a contra account to Bonds Payable.
B)   will cause interest expense to be less than cash interest payable.
C)   is increased over the life of the bond until it equals the bond's face value.
D)   is an adjunct account to Bonds Payable.E) C) and D)
F) A) and B)

Question 7

The building should be recorded on Poin's books at:

Accepted Answer

A)   $1,344,000.
B)   $1,519,000.
C)   $1,130,000.
D)   $1,464,000.E) B) and D)
F) B) and C)

Question 8

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:

Accepted Answer

A)   debit to an expense account.
B)   credit to an expense account.
C)   credit to the Allowance account.
D)   debit to the Allowance account.E) B) and C)
F) A) and B)

Question 9

One of the two constraints in accounting is:

Accepted Answer

A)   comparability.
B)   materiality.
C)   faithful representation.
D)   relevance.E) A) and B)
F) A) and C)

Question 10

Which of the following statements is true?

Accepted Answer

A)   Trading securities are debt securities that the investor has the intent to hold to maturity.
B)   Trading securities are securities bought and held primarily for sale in the near term.
C)   Trading securities are securities that may be sold in the future.
D)   Trading securities are reported at cost in the balance sheet.E) B) and C)
F) A) and D)

Question 11

Allowance for Doubtful Accounts is reported in the:

Accepted Answer

A)   balance sheet as a contra asset.
B)   balance sheet as a contra liability account.
C)   income statement under other expenses and losses.
D)   income statement under other revenues and gains.E) B) and C)
F) A) and D)

Exam 11: Reporting and Analyzing Stockholders Equity

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:

Correct Answer
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The cost of intangible assets should be:

Correct Answer
verified

Allowance for Doubtful Accounts is reported in the:

Correct Answer
verified

In a period of rising prices, the inventory method that results in the lowest income tax payment is:

Correct Answer
verified

If the market rate of interest is lower than the stated rate, bonds will sell at an amount:

Correct Answer
verified

One of the two constraints in accounting is:

Correct Answer
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The building should be recorded on Poin's books at:

Correct Answer
verified

The Discount on Bonds Payable account:

Correct Answer
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Which of the following statements is true?

Correct Answer
verified

Which of the following pairs of terms in the area of financial statement analysis are synonymous?

Correct Answer
verified

Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:

Correct Answer
verified

Exam 11: Reporting and Analyzing Stockholders Equity

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:

Correct AnswerverifiedShow Answer

The cost of intangible assets should be:

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts is reported in the:

Correct AnswerverifiedShow Answer

In a period of rising prices, the inventory method that results in the lowest income tax payment is:

Correct AnswerverifiedShow Answer

If the market rate of interest is lower than the stated rate, bonds will sell at an amount:

Correct AnswerverifiedShow Answer

One of the two constraints in accounting is:

Correct AnswerverifiedShow Answer

The building should be recorded on Poin's books at:

Correct AnswerverifiedShow Answer

The Discount on Bonds Payable account:

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following pairs of terms in the area of financial statement analysis are synonymous?

Correct AnswerverifiedShow Answer

Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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