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$6,500 Câu hỏi 10 Estimating and recording product warranty expense in the period of the sale best follows the Select one: a.. future period when the cost of repairing the product is pai

Câu hỏi 1

Hannah Johnson contributed equipment, inventory, and $53,000 cash to a partnership The equipment had

a book value of $25,000 and a market value of $28,000 The inventory had a book value of $50,000 but only had a market value of $15,000 due to obsolescence The partnership also assumed a $12,000 note payable owed by Hannah that was originally used to purchase the equipment

What amount should be recorded to Hannah’s capital account?

Select one:

a $108,000

b $96,000

c $116,000

d $84,000

Câu hỏi 2

The Calvin-Dogwood Partnership plans to form a new partnership with Alexis The existing partnership owns inventory that was purchased for $90,000, has a current replacement cost of $85,900, and is priced

to sell for $125,000 At what amount should the inventory be recorded in the accounts of the new

partnership if Alexis is to be admitted?

Select one:

a $129,100

b $90,000

c $125,000

d $85,900

Câu hỏi 3

Dayton Corporation began the current year with a retained earnings balance of $32,000 During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense

of $3,000 on equipment Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000 Compute the year-end retained earnings balance

Select one:

a $41,000

b $44,000

c $34,000

d $37,000

Câu hỏi 4

How is treasury stock shown on the balance sheet?

Select one:

a as an asset

b Treasury stock is not shown on the balance sheet

c as a decrease in stockholders' equity

d as an increase in stockholders' equity

Câu hỏi 5

Stockholders' equity

Select one:

a includes paid-in capital and liabilities

b is usually equal to cash on hand

c includes retained earnings and paid-in capital

d is shown on the income statement

Match each of the following contingent liability scenarios to its proper accounting treatment (a–d) Each treatment may be used more than once, and some treatments may not be used.

Event is reasonably possible and amount is estimable

Event is probable and amount is estimable.

Event is remote and amount is estimable

Event is remote and amount is not estimable

Event is probable but amount is not estimable

Event is reasonably possible but amount is not estimable

Câu hỏi 7

A current liability is a debt that is reasonably expected to be paid

Select one:

a out of cash currently on hand

b out of currently recognized revenues

c between 6 and 18 months

d within one year

Câu hỏi 8

Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be

Select one:

a $250

b $1,000

c $20,250

d $21,000

Câu hỏi 9

During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $21,500 and $15,000, respectively The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years What is the total cost

of vacation pay and pension rights to be recognized in the first year?

Select one:

a $36,500

b $15,000

c $21,500

d $6,500

Câu hỏi 10

Estimating and recording product warranty expense in the period of the sale best follows the

Select one:

a matching concept

b business entity concept

c materiality concept

d cost concept

Câu hỏi 11

Chưa trả lời

Hall Company sells merchandise with a one-year warranty In the current year, sales consist of 4,500 units It is estimated that warranty repairs will average $10 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year On the current year's income statement, Hall should show warranty expense of

Select one:

a $0

b $13,500

c $45,000

d $31,500

Câu hỏi 12

Martinez Co borrowed $50,000 on March 1 of the current year by signing a 60-day, 9%, interest-bearing note Assuming a 360-day year, when the note is paid on April 30, the entry for the payment should include a

Select one:

a credit to Cash for $54,500

b debit to Interest Expense for $750

c debit to Interest Payable for $750

d credit to Cash for $50,000

Câu hỏi 13

On January 5, Thomas Company, which follows a calendar year, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 each of the next four years The proper balance sheet presentation on December 31 is

Select one:

a Long-term debt, $1,000,000

b Current liabilities, $750,000; Long-term debt, $250,000

c Current liabilities, $1,000,000

d Current liabilities, $250,000; Long-term debt, $750,000

Câu hỏi 14

Taylor Bank lends Guarantee Company $150,000 on January 1 Guarantee Company signs a $150,000, 8%, nine-month note The journal entry made by Guarantee Company on January 1 for the proceeds and issuance of the note is

Select one:

a Cash 150,000

Notes Payable 150,000

b Interest Expense 12,000

Cash 138,000

Notes Payable 150,000

c Notes Payable 120,000

Interest Payable 7,200

Cash 120,000

Interest Expense 7,200

d Cash 162,000

Interest Expense 12,000

Notes Payable 150,000

Câu hỏi 15

The cost of a product warranty should be included as an expense in the

Select one:

a period of the sale of the product

b future period when the product is repaired or replaced

c period the cash is collected for a product sold on account

d future period when the cost of repairing the product is paid

Câu hỏi 16

The current portion of long-term debt should

Select one:

a be paid immediately

b be classified as a long-term liability

c not be separated from the long-term portion of debt

d be reclassified as a current liability

Câu hỏi 17

The journal entry a company uses for accrued vacation privileges for its employees at the end of the year is

Select one:

a debit Vacation Pay Expense; credit Vacation Pay Payable

b debit Salaries Expense; credit Cash

c debit Salaries Expense; credit Salaries Payable

d debit Vacation Pay Payable; credit Vacation Pay Expense

Câu hỏi 18

The journal entry a company uses for the estimated product warranty expense is

Select one:

a debit Product Warranty Expense; credit Product Warranty Payable

b debit Product Warranty Expense; credit Cash

c debit Product Warranty Payable; credit Cash

d debit Product Warranty Payable; credit Product Warranty Expense

Câu hỏi 19

Vacation pay payable is reported on the balance sheet as a(n)

Select one:

a current liability

b expense

c current liability or long-term liability, depending on when the vacations will be taken by

employees

d long-term liability

Câu hỏi 20

Wright Company sells merchandise with a one-year warranty In the current year, sales consisted of 2,000 units It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year On the current year's income statement, Wright should show warranty expense of

Select one:

a $30,000

b $0

c $9,000

d $21,000

Câu hỏi 21

Zennia Company provides its employees with varying amounts of vacation per year, depending on their length of employment The estimated amount of the current year’s vacation cost is $135,000 On

December 31, the end of the current year, the current month’s accrued vacation pay is

Select one:

a $67,500

b $135,000

c $11,250

d $0

Câu hỏi 22

Abbey Co sold merchandise to Gomez Co on account, $35,000, terms 2/15, net 45 The cost of the goods sold was $24,500 Abbey Co issued a credit memo for $3,600 for merchandise returned that originally cost $1,700 Gomez Co paid the invoice within the discount period What is the amount of gross profit earned by Abbey Co on the above transactions?

Select one:

a $30,772

b $10,500

c $7,972

d $31,400

Câu hỏi 23

Details of invoices for purchases of merchandise are as follows:

Allowances

What will be the total amount collected on all four invoices, assuming that credit for returns and

allowances was received prior to payment and that all invoices were paid within the discount period

Select one:

a $$10,863

b $10,653

c $10,803

d $10,753

Câu hỏi 24

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on

account would include a

Select one:

a debit to Inventory

b credit to Sales

c credit to Inventory

d debit to Accounts Payable

Câu hỏi 25

For a buyer using a perpetual inventory system, the entry to record the return of merchandise purchased

on account includes a

Select one:

a credit to Accounts Payable

b credit to Sales

c credit to Merchandise Inventory

d debit to Cost of Merchandise Sold

Câu hỏi 26

Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000 The retailer receives

a 30% trade discount and credit terms of 2/10, n/30 What amount should Norfolk debit to the

merchandise inventory account?

Select one:

a $21,000

b $30,000

c $29,400

d $20,580

Câu hỏi 27

The journal entry for the receipt of inventory purchased for cash in a perpetual inventory system would be

Select one:

a Jan 1 Purchases 1,500

Accounts Payable 1,500

b Jan 1 Cash 1,500

Accounts Receivable 1,500

c Jan 1 Merchandise Inventory 1,500

Cash 1,500

d Jan 1 Office Supplies 1,500

Cash 1,500

Câu hỏi 28

The proper journal entry for the receipt of inventory purchased on account in a periodic inventory system would be

Select one:

a Jan 1 Purchases 1,600

Accounts Payable 1,600

b Jan 1 Merchandise Inventory 1,600

Accounts Payable 1,600

c Jan 1 Office Supplies 1,600

Accounts Payable 1,600

d Jan 1 Purchases 1,600

Accounts Receivable 1,600

Câu hỏi 29

Contingent liabilities that are probable but cannot be reasonably estimated are disclosed in the _

Select one:

a current liabilities section of the balance sheet

b notes to the financial statements

c long term-liabilities section of the balance sheet

d retained earnings section of the statement of stockholders' equity

Câu hỏi 30

Glow Co reacquired 60,000 shares of its common stock at $25 per share The balance of the treasury stock account is reported on the balance sheet as a(n) _

Select one:

a reduction of stockholders' equity

b increase in long-term liabilities

c reduction of fixed assets

d increase in current liabilities

Câu hỏi 31

Liabilities due beyond one year are classified as _

Select one:

a long-term liabilities

b contingent liabilities

c current liabilities

d fixed liabilities

Câu hỏi 32

The cost of a product warranty should be included as an expense in the _

Select one:

a period of the sale of the product

b future period when the product is repaired or replaced

c period the cash is collected for a product sold on account

d future period when the cost of repairing the product is paid

Câu hỏi 33

Treasury stock is reported in the _ section of the balance sheet

Select one:

a stockholders' equity

b contingent liabilities

c current liabilities

d investment

Câu hỏi 34

On May 1, a company borrowed $30,000 from the First National Bank on a 1-year, 6% note Assuming the company keeps its records on a calendar year basis, an entry is needed on December 31st to increase

Select one:

a interest payable by $900

b interest expense by $600

c interest payable by $1,200.

d interest expense by $1,800

Câu hỏi 35

The amount of a current liability reported on the balance sheet for interest payable includes

Select one:

a all interest currently owed related to amounts borrowed in past transactions.

b all interest to be paid in the future related to amounts borrowed in past transactions

c all interest to be paid within one year into the future related to amounts borrowed in past transactions

d all interest paid-to-date related to amounts borrowed in past transactions

Câu hỏi 36

There are some liabilities, such as income taxes payable and the estimated warranty liability, for which the amounts must be estimated so they can be recorded in the same period as the related revenues Failure

to record these amounts in the same period as the related revenues is a violation of the

Select one:

a expense recognition principle.

b concept of historical cost

c going concern assumption

d limitation of materiality

Câu hỏi 37

Which of the following statements regarding accounts payable is false?

Select one:

a Accounts payable arise when a business promises to purchase goods or services in the future.

b Accounts payable seldom require the payment of interest

c Accounts payable arise when a business purchases goods or services on credit

d Accounting for accounts payable is really just the flip side of accounts receivable

Câu hỏi 38

Which of the following would appear on the balance sheet as a current liability?

Select one:

a Payments that are likely to occur for pension benefits to employees.

b A loss that could be expected upon the occurrence of a strike by employees

c A possible loss from a threatened lawsuit

d Potential damages from the risk of explosions in a fireworks factory

Câu hỏi 39

Which of the following would appear only in the footnotes accompanying the financial statements?

Select one:

a A liability resulting from a recent lawsuit settlement

b A probable loss from a pending lawsuit, the amount of which is not yet determinable.

c A probable loss in the amount of $4 million from a pending lawsuit

d A loss that is likely to occur in the amount of $4 million related to a pending lawsuit

Câu hỏi 40

A company provides a one-year warranty for its products The estimated cost of parts and labor required

to satisfy warranty claims should be recorded as a current liability in the period the products are sold

Select one:

True

False

Câu hỏi 41

Sales taxes collected from customers should be recorded in a liability account until the cash is passed along to the taxing authority

Select one:

True

False

Câu hỏi 42

On November 1, 2017, Brownsville Co borrowed $80,000 from State Bank and signed a 12%, six-month note payable, all due at maturity The interest on this loan is stated separately At December 31, 2017, Brownsville Co.'s overall liability for this loan amounts to

Select one:

a $83,200

b $80,000

c $81,600

d $84,800

Câu hỏi 43

On November 1, Greenfield Corporation borrowed $55,000 from a bank and signed a 12%, 90-day note payable in the amount of $55,000 If you assume 360 days in year, the November 30 adjustment will

Select one:

a increase interest expense by $550 and increase notes payable by $550

b increase discount on notes payable by $1,100 and increase interest payable by $1,100

c increase interest expense by $550 and decrease cash by $550

d increase interest expense by $550 and increase interest payable by $550.

Câu hỏi 44

Proctor Inc has a weekly payroll of $8,000 for a five-day workweek, Monday through Friday If

December 31, the last day of the accounting year, falls on Wednesday, Proctor would make an adjustment that would

Select one:

a decrease wages payable by $4,800

b increase wages payable by $8,000

c increase wages expense by $4,800.

d decrease cash by $4,800

Câu hỏi 45

There are some liabilities, such as income tax payable, for which the amounts must be estimated Failure

to estimate these amounts and record them would be a violation of the

Select one:

a matching principle.

b concept of historical cost

c practice of consistency

d convention of conservation