Accy 201 Ole Miss Final Exam 2025/2026
Exam Questions and Answers | 100%
Solved
What is earnings per share? - 🧠 ANSWER ✔✔the amount of income earned per
share of a company's outstanding common stock
How do you calculate earnings per share? - 🧠 ANSWER ✔✔net income - preferred
dividends / the weighted-average common shares outstanding
What is premium on stock? - 🧠 ANSWER ✔✔when a corporation sells its stock for
more than par (or stated) value
What journal entry would you use to record issuing par value stock at premium? -
🧠 ANSWER ✔✔debit cash
credit common stock and capital excess of par value
What are the components of stockholders' equity? - 🧠 ANSWER ✔✔paid-in (or
contributed) capital and retained earnings
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,What is paid-in capital? - 🧠 ANSWER ✔✔total amount of cash and assets the
corporation receives from its stockholders in exchange for its stock
How do you calculate semiannual interest paid to bondholders? - 🧠 ANSWER
✔✔if a company issues a $1,000, 8% bond paying interest semiannually it pays
annual interest of $80 (8% x $1,000) in 2 semiannual payments, they payments
would equal $40 (80/2)
What journal entry would you use to record issues of bonds at discount or
premium? - 🧠 ANSWER ✔✔at discount: debit cash and discount on bonds payable
at premium: debit cash and credit premium on bonds payable and bonds payable
How are bonds payable reported on the balance sheet? - 🧠 ANSWER ✔✔
What journal entry would you use to record borrowing on short-term notes
payable? How would you record when it is paid? - 🧠 ANSWER ✔✔debit cash and
credit notes payable
when paid: debit notes payable & interest expense and credit cash
What are known liabilities accounted for? - 🧠 ANSWER ✔✔accounts payable,
notes payable, payroll sales taxes, unearned revenue, and leases
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, When plant assets are sold, or disposed of, how is gain or loss calculated? - 🧠
ANSWER ✔✔when it is no longer useful to the company and it has no market
value; it is calculated by comparing the equipment book value with the zero net
cash proceeds
What is the difference between revenue expenditures and capital expenditures? - 🧠
ANSWER ✔✔revenue expenditures are additonal costs of plant assets that DO
NOT materially increase the assets life or productive capabilities
capital expenditures are additional costs of plant assets that provide benefits
extending beyond the current period
What are some examples of revenue expenditures? - 🧠 ANSWER ✔✔cleaning,
repainting, adjustments, lubricants
What are some examples of capital expenditures? - 🧠 ANSWER ✔✔roofing
replacement, plant expansion, major overhauls of machinery and equipment
What is depreciation? - 🧠 ANSWER ✔✔the process of allocating the cost of a
plant asset to expense in the accounting periods benefitting from its use
What are the factors for computing depreciation? - 🧠 ANSWER ✔✔1) cost
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Exam Questions and Answers | 100%
Solved
What is earnings per share? - 🧠 ANSWER ✔✔the amount of income earned per
share of a company's outstanding common stock
How do you calculate earnings per share? - 🧠 ANSWER ✔✔net income - preferred
dividends / the weighted-average common shares outstanding
What is premium on stock? - 🧠 ANSWER ✔✔when a corporation sells its stock for
more than par (or stated) value
What journal entry would you use to record issuing par value stock at premium? -
🧠 ANSWER ✔✔debit cash
credit common stock and capital excess of par value
What are the components of stockholders' equity? - 🧠 ANSWER ✔✔paid-in (or
contributed) capital and retained earnings
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,What is paid-in capital? - 🧠 ANSWER ✔✔total amount of cash and assets the
corporation receives from its stockholders in exchange for its stock
How do you calculate semiannual interest paid to bondholders? - 🧠 ANSWER
✔✔if a company issues a $1,000, 8% bond paying interest semiannually it pays
annual interest of $80 (8% x $1,000) in 2 semiannual payments, they payments
would equal $40 (80/2)
What journal entry would you use to record issues of bonds at discount or
premium? - 🧠 ANSWER ✔✔at discount: debit cash and discount on bonds payable
at premium: debit cash and credit premium on bonds payable and bonds payable
How are bonds payable reported on the balance sheet? - 🧠 ANSWER ✔✔
What journal entry would you use to record borrowing on short-term notes
payable? How would you record when it is paid? - 🧠 ANSWER ✔✔debit cash and
credit notes payable
when paid: debit notes payable & interest expense and credit cash
What are known liabilities accounted for? - 🧠 ANSWER ✔✔accounts payable,
notes payable, payroll sales taxes, unearned revenue, and leases
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, When plant assets are sold, or disposed of, how is gain or loss calculated? - 🧠
ANSWER ✔✔when it is no longer useful to the company and it has no market
value; it is calculated by comparing the equipment book value with the zero net
cash proceeds
What is the difference between revenue expenditures and capital expenditures? - 🧠
ANSWER ✔✔revenue expenditures are additonal costs of plant assets that DO
NOT materially increase the assets life or productive capabilities
capital expenditures are additional costs of plant assets that provide benefits
extending beyond the current period
What are some examples of revenue expenditures? - 🧠 ANSWER ✔✔cleaning,
repainting, adjustments, lubricants
What are some examples of capital expenditures? - 🧠 ANSWER ✔✔roofing
replacement, plant expansion, major overhauls of machinery and equipment
What is depreciation? - 🧠 ANSWER ✔✔the process of allocating the cost of a
plant asset to expense in the accounting periods benefitting from its use
What are the factors for computing depreciation? - 🧠 ANSWER ✔✔1) cost
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
