The goal of reporting realistic figures and never overstating assets or net income applies to the

QUESTION 1

1. Which of the following accounts is credited by the seller when tax is collected on retail sales?

Accounts Payable

Payroll Tax

Sales Tax Payable

Unearned Revenue

5 points

QUESTION 2

1. Which of the following is the amount the borrower must pay back to the bondholders at maturity?

Market value

Present value

Stated interest value

Principal amount

5 points

QUESTION 3

1. Which of the following describes a serial bond?

A bond that matures in installments at regular intervals

A bond that gives the bondholder a claim for specific assets

A bond that matures at one specified time

A bond that is not backed by specific assets

5 points

QUESTION 4

1. If bonds with a face value of $205,000 are issued at par, the amount of cash proceeds is __________.

$204,895

$205,000

$215,250

$225,500

5 points

QUESTION 5

1. Which of the following is a liability account?

Prepaid Advertising

Cash

Building

Unearned Rent

5 points

QUESTION 6

1. Which of the following would be included in the journal entry to record the payment of sales tax payable?

A debit to Sales Tax Payable

A credit to Sales Tax Expense

A debit to Sales Tax Expense

A credit to Sales Tax Payable

5 points

QUESTION 7

1. Pluto Corp. sold goods, with a selling price of $9,021, for cash. The state sales tax rate is 10%. What amount is credited to the Sales Revenue account?

$9,021

$9,923

$902

$8,119

5 points

QUESTION 8

1. Barter, Inc. sold goods for $894,500 on account. The company operates in a state that imposes a 6% sales tax. What is the amount of the sales tax payable to the state?

$53,670

$26,835

$13,418

$107,340

5 points

QUESTION 9

1. Amounts owed for products or services purchased on account are called __________.

accounts payable

unearned revenue

accrued expense

warranty payable

5 points

QUESTION 10

1. Which of the following is a characteristic of a current liability?

It creates a present obligation for future payment of cash or services.

It cannot be settled with services.

It is an avoidable obligation.

It occurs because of a future transaction or event.

5 points

QUESTION 11

1. Which term refers to the process by which businesses prepare their financial statements?

Post-closing balance journaling

Trial balance calculation

The accounting cycle

Tax preparation

5 points

QUESTION 12

1. Justice Company purchased a machine for $50,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine.

$30,000

$40,000

$35,000

$45,000

5 points

QUESTION 13

1. Which of the following is recorded on the left side of a T-account?

Residual value

Book value

Credits

Debits

5 points

QUESTION 14

1. Dynamic Production Services started the year with total assets of $180,000 and total liabilities of $80,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $150,000 and $75,000, respectively. During the year, there were no new capital contributions and the owner withdrew $60,000. Calculate Dynamic's net income for the year.

$80,000

$100,000

$60,000

$75,000

5 points

QUESTION 15

1. What are the two types of inventory accounting systems used by businesses?

FIFO and LIFO

Perpetual and periodic

Wholesale and retail

Manufacturer and producer

5 points

QUESTION 16

1. The goal of reporting realistic figures and never overstating assets or net income applies to the __________.

conservatism principle

materiality concept

disclosure principle

consistency principle

5 points

QUESTION 17

1. Which of the following keeps accountants from having to report every item in strict accordance with the accounting principles?

Conservatism

Materiality concept

Disclosure principle

Consistency principle

5 points

QUESTION 18

1. The equity of Capital Company is $200,000 and the total liabilities are $30,000. The total assets are ___________.

$170,000

$200,000

$30,000

$230,000

5 points

QUESTION 19

1. The expected value of a depreciable asset at the end of its useful life is called __________.

residual value

book value

accrued revenue

depreciation

5 points

QUESTION 20

1. Which of the following organizations published standards that serve as global accounting guidelines used by over 120 countries?

International Accounting Standards Board (IASB)

Public Company Accounting Oversight Board (PCAOB)

Financial Accounting Standards Board (FASB)

American Institute of Certified Public Accountants (AICPA)