ACCT 212 Week 5 Quiz 5
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Question 13 pts
(TCO 6) Which of the following is a natural resource?
Patents
Timber
Gas res
...
ACCT 212 Week 5 Quiz 5
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This test was scored at 100%
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Question 13 pts
(TCO 6) Which of the following is a natural resource?
Patents
Timber
Gas reserves
both B and C
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Question 23 pts
(TCO 6) Depreciation expense
allocates a portion of the cost of an asset against the revenue the asset helps earn each period.
is not required for plant assets according to GAAP.
is reported on the balance sheet.
is required for land according to GAAP.
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Question 33 pts
(TCO 6) Natural resources
are not physically used up over time.
have a contra account, accumulated amortization.
are recorded on the books using the relative sales-value method.
are depleted using the unit-of-production method.
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Question 43 pts
(TCO 6) When an investor owns between 20% and 50% of the outstanding stock of another company, the _____ method is used to account for stock investments.
market value
equity
consolidated
historical cost.
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Question 53 pts
(TCO 6) Which of the following is not necessary to know in computing the future value of an annuity?
Amount of the initial payment
Interest rate
Length of time between investment and payment
Year the payments begin
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Question 63 pts
(TCO 6) A current liability is a debt that can reasonably be expected to be paid
within 1 year or the company's normal operating cycle (if it is longer than 1 year).
between 6 months and 18 months.
out of cash on hand.
out of current revenues.
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Question 73 pts
(TCO 6) Failure to record an accrued liability causes a company to
overstate income.
overstate assets.
understate liabilities.
understate owners' equity.
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Question 83 pts
(TCO 6) If the market interest rate is greater than the stated interest rate, bonds will sell
at face value.
at a discount.
at a premium.
at market value.
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Question 93 pts
(TCO 6) Bonds which are backed only by the good faith of the borrower are referred to as
junk bonds.
unregistered bonds.
debenture bonds.
callable bonds.
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Question 103 pts
(TCO 6) A disadvantage of using bonds as a method of long-term financing is that
interest must be paid regardless of earnings.
interest expense is tax deductible.
bond holders do not have voting rights.
issuing bonds results in higher earnings per share.
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