1) Intangible assets are the rights and privileges that result from ownership of long-lived assets that
A. must be generated internally B. are non-renewable natural resources C. do not have physical substance D. have been exchanged at a gain
2) Gains on an exchange of plant assets that has commercial substance are
A. deducted from the cost of the new asset acquired B. deferred C. not possible D. recognized immediately
3) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what is the amount of bad debts ...view middle of the document...
the carrying value of the bonds will decrease each period C. interest expense will not be a constant dollar amount over the life of the bond D. interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued
8) Capital stock to which the charter has assigned a value per share is called
A. par value stock B. no-par value stock C. stated value stock D. assigned value stock
9) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2010. The board of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011?
A. $0 B. $25,000 C. $45,000 D. $20,000
10) Two individuals at a retail store work the same cash register. You evaluate this situation as
A. a violation of establishment of responsibility B. a violation of segregation of duties C. supporting the establishment of responsibility D. supporting internal independent verification
11) The Sarbanes-Oxley Act imposed which new penalty for executives?
A. Fines B. Suspension C. Criminal prosecution for executives D. Return of ill-gotten gains
12) The Sarbanes-Oxley Act requires that all publicly traded companies maintain a system of internal controls. Internal controls can be defined as a plan to
A. safeguard assets B. monitor balance sheets C. control liabilities D. evaluate capital stock
13) The purchase of treasury stock
A. decreases common stock authorized B. decreases common stock issued C. decreases common stock outstanding D. has no effect on common stock outstanding
14) Which of the following is a fundamental factor in having an effective, ethical corporate culture?
A. Efficient oversight by the company’s Board of Directors B. Workplace ethics C. Code of conduct D. Ethics management programs
15) Dawson Company issued 500 shares of no-par common stock for $4,500. Which of the following journal entries would be made if the stock has a stated value of $2 per share?
A. Cash: $4,500 Common Stock: 4,500
B. Cash: $4,500 Common Stock: 1,000 Paid-In Capital in Excess of Par 3,500
C. Cash: $4,500 Common Stock: 1,000 Paid-In Capital in Excess of Stated Value 3,500
D. Common Stock: $4,500 Cash: $4,500
16) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?
A. Bad Debts Expense: $15,000 Allowances for Doubtful Accounts: $15,000
B. Bad Debts Expense: $12,000 Allowances for Doubtful Accounts: $12,000
C. Bad Debts Expense: $12,000 Accounts Receivable: $12,000
D. Bad Debts Expense: $15,000 Accounts Receivable: $15,000
17) Blanco, Inc. has the following income statement (in millions): BLANCO,...