ACCT 201A Exam #3 Questions And
Answers
A major disadvantage of a corporation is -
correct answer Additional Taxes
ABC Corp. issues 1,000 shares of $10 par value common stock at
$12 per share. When the transaction is recorded, credits are made
to -
correct answer Common Stock $10,000 and Paid-In Capital in
Excess of Stated Value $2,000
Additions to plant assets are -
correct answer Capital Expenditures
Bennie Razor Company has decided to sell one of its old
manufacturing machines on June 30, 2022. The machine was
purchased for $80,000 on January 1, 2018, and was depreciated on
a straight-line basis for 10 years assuming no salvage value. If the
machine was sold for $26,000, what was the amount of the gain or
loss recorded at the time of the sale? -
correct answer $18,000 loss
Cuso Company purchased equipment on January 1, 2021, at a total
invoice cost of $400,000. The equipment has an estimated salvage
,ACCT 201A Exam #3 Questions And
Answers
value of $10,000 and an estimated useful life of 5 years. What is the
amount of accumulated depreciation at December 31, 2022, if the
straight-line method of depreciation is used? -
correct answer $156,000
Depreciation is a process of -
correct answer Cost Allocation
Entries for cash dividends are required on the -
correct answer Declaration date and the payment date
Howard Corporation issued a 20-year mortgage note payable on
January 1, 2022. At December 31, 2022, the unpaid principal
balance will be reported as -
correct answer Part current and part long-term liability
If a company reports goodwill as an intangible asset on its books,
what is the one thing you know with certainty? -
correct answer The company purchased another company
, ACCT 201A Exam #3 Questions And
Answers
If everything else is held constant, earnings per share is increased
by -
correct answer The purchase of treasury stock
In the stockholders' equity section of the balance sheet, common
stock -
correct answer Is part of paid-in capital
In the stockholders' equity section, the cost of treasury stock is
deducted from -
correct answer Total paid-in capital and retained earnings
JD Company borrowed $70,000 on December 1 on a 6-month, 12%
note. At December 31 -
correct answer Both the note payable and the interest payable
are current liabilities
Laurel Inc. issues 10-year bonds with a maturity value of $200,000.
If the bonds are issued at a premium, this indicates that -
correct answer The contractual interest rate exceeds the market
interest rate
Answers
A major disadvantage of a corporation is -
correct answer Additional Taxes
ABC Corp. issues 1,000 shares of $10 par value common stock at
$12 per share. When the transaction is recorded, credits are made
to -
correct answer Common Stock $10,000 and Paid-In Capital in
Excess of Stated Value $2,000
Additions to plant assets are -
correct answer Capital Expenditures
Bennie Razor Company has decided to sell one of its old
manufacturing machines on June 30, 2022. The machine was
purchased for $80,000 on January 1, 2018, and was depreciated on
a straight-line basis for 10 years assuming no salvage value. If the
machine was sold for $26,000, what was the amount of the gain or
loss recorded at the time of the sale? -
correct answer $18,000 loss
Cuso Company purchased equipment on January 1, 2021, at a total
invoice cost of $400,000. The equipment has an estimated salvage
,ACCT 201A Exam #3 Questions And
Answers
value of $10,000 and an estimated useful life of 5 years. What is the
amount of accumulated depreciation at December 31, 2022, if the
straight-line method of depreciation is used? -
correct answer $156,000
Depreciation is a process of -
correct answer Cost Allocation
Entries for cash dividends are required on the -
correct answer Declaration date and the payment date
Howard Corporation issued a 20-year mortgage note payable on
January 1, 2022. At December 31, 2022, the unpaid principal
balance will be reported as -
correct answer Part current and part long-term liability
If a company reports goodwill as an intangible asset on its books,
what is the one thing you know with certainty? -
correct answer The company purchased another company
, ACCT 201A Exam #3 Questions And
Answers
If everything else is held constant, earnings per share is increased
by -
correct answer The purchase of treasury stock
In the stockholders' equity section of the balance sheet, common
stock -
correct answer Is part of paid-in capital
In the stockholders' equity section, the cost of treasury stock is
deducted from -
correct answer Total paid-in capital and retained earnings
JD Company borrowed $70,000 on December 1 on a 6-month, 12%
note. At December 31 -
correct answer Both the note payable and the interest payable
are current liabilities
Laurel Inc. issues 10-year bonds with a maturity value of $200,000.
If the bonds are issued at a premium, this indicates that -
correct answer The contractual interest rate exceeds the market
interest rate
