WGU D104 INTERMEDIATE ACCOUNTING II
EXAM REVIEW QUESTIONS AND CORRECT
ANSWERS
◉ Cash Dividend Payable.
Answer: An amount to be paid in cash owed by a corporation to its
stockholders as a result of board of directors' authorization.
◉ Cash Dividends.
Answer: When a corporation distributes a dividend in cash to the
stockholders.
◉ Commodity-backed Bonds.
Answer: Bonds that are redeemable in measures of a commodity,
such as barrels of oil, tons of coal, or ounces of rare metal.
◉ Common Stock.
Answer: The residual corporate interest that bears the ultimate risks
of loss and receives the benefits of success.
◉ Complex.
,Answer: When a corporation's capital structure includes securities
that could have a dilutive effect on earnings per common share.
◉ Composite Approach.
Answer: A depreciation method that depreciates a collection of
assets that are heterogeneous and have different lives.
◉ Composite Depreciation Rate.
Answer: Depreciation per year divided by the total cost of the assets.
◉ Contingency.
Answer: An existing condition, situation, or set of circumstances
involving uncertainty as to possible gain (gain contingency) or loss
(loss contingency) to an enterprise that will ultimately be resolved
when one or more future events occur or fail to occur.
◉ Contingent Liabilities.
Answer: Obligations that are dependent upon the occurrence or
nonoccurrence of one or more future events to confirm either the
amount payable, the payee, the date payable, or its existence.
◉ Contributed (Paid-in) Capital.
Answer: Capital stock and additional paid-in capital (also called
paid-in capital).
, ◉ Convertible Bonds.
Answer: Bonds that are convertible into other securities of the
corporation for a specified time after issuance.
◉ Convertible Preferred Stock.
Answer: Preferred stock that provides for the exchange of preferred
stock into common stock at a specified ratio.
◉ Copyright.
Answer: A federally granted right that all authors, painters,
musicians, sculptors, and other artists have in their creations and
expressions, which is granted for the life of the creator plus 70 years.
◉ Cost Depletion.
Answer: The accounting process of allocating the cost of natural
resources (i.e., timber, gravel, oil, and coal) to expense.
◉ Cost Method.
Answer: The Treasury Stock account is debited for the cost of the
shares acquired and is credited upon reissuance for this same cost.
◉ Coupon.
EXAM REVIEW QUESTIONS AND CORRECT
ANSWERS
◉ Cash Dividend Payable.
Answer: An amount to be paid in cash owed by a corporation to its
stockholders as a result of board of directors' authorization.
◉ Cash Dividends.
Answer: When a corporation distributes a dividend in cash to the
stockholders.
◉ Commodity-backed Bonds.
Answer: Bonds that are redeemable in measures of a commodity,
such as barrels of oil, tons of coal, or ounces of rare metal.
◉ Common Stock.
Answer: The residual corporate interest that bears the ultimate risks
of loss and receives the benefits of success.
◉ Complex.
,Answer: When a corporation's capital structure includes securities
that could have a dilutive effect on earnings per common share.
◉ Composite Approach.
Answer: A depreciation method that depreciates a collection of
assets that are heterogeneous and have different lives.
◉ Composite Depreciation Rate.
Answer: Depreciation per year divided by the total cost of the assets.
◉ Contingency.
Answer: An existing condition, situation, or set of circumstances
involving uncertainty as to possible gain (gain contingency) or loss
(loss contingency) to an enterprise that will ultimately be resolved
when one or more future events occur or fail to occur.
◉ Contingent Liabilities.
Answer: Obligations that are dependent upon the occurrence or
nonoccurrence of one or more future events to confirm either the
amount payable, the payee, the date payable, or its existence.
◉ Contributed (Paid-in) Capital.
Answer: Capital stock and additional paid-in capital (also called
paid-in capital).
, ◉ Convertible Bonds.
Answer: Bonds that are convertible into other securities of the
corporation for a specified time after issuance.
◉ Convertible Preferred Stock.
Answer: Preferred stock that provides for the exchange of preferred
stock into common stock at a specified ratio.
◉ Copyright.
Answer: A federally granted right that all authors, painters,
musicians, sculptors, and other artists have in their creations and
expressions, which is granted for the life of the creator plus 70 years.
◉ Cost Depletion.
Answer: The accounting process of allocating the cost of natural
resources (i.e., timber, gravel, oil, and coal) to expense.
◉ Cost Method.
Answer: The Treasury Stock account is debited for the cost of the
shares acquired and is credited upon reissuance for this same cost.
◉ Coupon.
