finance quiz
Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?
| $130,000 |
| $134,700 |
| $132,200 |
| $132,500 |
Multiple Choice, Question 65 |
|
Hull Company acquires land for $86,000 cash. Additional costs are as follows:
Removal of shed | $300 |
Filling and grading | 1,500 |
Salvage value of lumber of shed | 120 |
Broker commission | 1,130 |
Paving of parking lot | 10,000 |
Closing costs | 560 |
Hull will record the acquisition cost of the land as
| $89,610. |
| $86,000. |
| $89,370. |
| $87,690. |
Engler Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of the company is painted on the side of the truck for $1,200. The truck license is $120. The truck undergoes safety testing for $220. What does Engler record as the cost of the new truck?
| $48,000 |
| $49,540 |
| $47,420 |
| $49,420 |
Multiple Choice, Question 76 | |
|
The balance in the Accumulated Depreciation account represents the
| amount to be deducted from the cost of the plant asset to arrive at its fair market value. |
| amount charged to expense in the current period. |
| amount charged to expense since the acquisition of the plant asset. |
| cash fund to be used to replace plant assets. |
Multiple Choice, Question 217 | |
|
All of the following are intangible assets except
| goodwill. |
| research and development costs. |
| patents. |
| copyrights. |
Multiple Choice, Question 218 | |
|
A purchased patent has a legal life of 20 years. It should be
| amortized over 20 years regardless of its useful life. |
| not amortized. |
| expensed in the year of acquisition. |
| amortized over its useful life if less than 20 years. |
The asset turnover ratio is computed by dividing
| net sales by ending total assets. |
| net income by average total assets. |
| net sales by average total assets. |
| net income by ending total assets. |
Multiple Choice, Question 42 | |
|
A current liability is a debt that can reasonably be expected to be paid
| within one year. |
| out of currently recognized revenues. |
| out of cash currently on hand. |
| between 6 months and 18 months. |
From a liquidity standpoint, it is more desirable for a company to have current
| liabilities exceed current assets. |
| assets exceed current liabilities. |
| liabilities exceed long-term liabilities. |
| assets equal current liabilities. |
Admire County Bank agrees to lend Givens Brick Company $200,000 on January 1. Givens Brick Company signs a $200,000, 8%, 9-month note. The entry made by Givens Brick Company on January 1 to record the proceeds and issuance of the note is
|
|
|
|
|
|
|
| |||||||||
Multiple Choice, Question 54 | ||||||||||
|
Admire County Bank agrees to lend Givens Brick Company $200,000 on January 1. Givens Brick Company signs a $200,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
|
|
|
|
|
|
|
| ||||||||||||
Multiple Choice, Question 67 | |||||||||||||
|
The interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day note would be
| $1,500. |
| $3,333. |
| $6,000. |
| $1,000. |
Multiple Choice, Question 86 | |
|
The current portion of long-term debt should
| not be separated from the long-term portion of debt. |
| be paid immediately. |
| be classified as a long-term liability. |
| be reclassified as a current liability. |
Which one of the following payroll taxes does not result in a payroll tax expense for the employer?
| FICA tax |
| Federal income tax |
| State unemployment tax |
| Federal unemployment tax |
Multiple Choice, Question 38 | |
|
(n)
| limited liability company. |
| "S" corporation. |
| limited liability partnership. |
| sub-chapter "S" corporation. |
Multiple Choice, Question 40 | |
|
A general partner in a partnership
| is the partner who lacks a specialization. |
| has unlimited liability for all partnership debts. |
| is always the general manager of the firm. |
| is liable for partnership liabilities only to the extent of that partner's capital equity. |
Multiple Choice, Question 41 | |
|
The individual assets invested by a partner in a partnership
| revert back to that partner if the partnership liquidates. |
| determine the scope of authority of that partner. |
| are jointly owned by all partners. |
| determine that partner's share of net income or loss for the year. |
Multiple Choice, Question 48 | |
|
In a partnership, mutual agency means
| an act by a partner is judged as binding on other partners depending on whether the act appears to be appropriate for the partnership. |
| that partners must pay taxes on a mutual or combined basis. |
| each partner acts on his own behalf when engaging in partnership business. |
| the act of any partner is binding on all other partners, only if partners act within their scope of authority. |
Multiple Choice, Question 50 | |
|
The partner in a limited partnership that has unlimited liability is referred to as the
| unlimited partner. |
| lead partner. |
| head partner. |
| general partner. |
Multiple Choice, Question 51 | |
|
Limited partnerships
| must have at least one general partner. |
| guarantee that a partner will get back his original investment. |
| are limited to only three partners. |
| guarantee that a partner will receive a return. |
Multiple Choice, Question 52 | |
|
The Polen-James partnership is terminated when creditor claims exceed partnership assets by $40,000. James is a millionaire and Polen has no personal assets. Polen's partnership interest is 75% and James's is 25%. Creditors
| may not require James to use his personal assets to satisfy the $40,000 in claims. |
| must collect their claims equally from Polen and James. |
| may collect the entire $40,000 from James. |
| must collect their claims 75% from Polen and 25% from James. |
Multiple Choice, Question 123 | |
|
Eberle and Lankton are partners who share income and losses in the ratio of 3:2, respectively. On August 31, their capital balances were: Eberle, $175,000 and Lankton, $150,000. On that date, they agree to admit Newman as a partner with a one-third capital interest. If Newman invests $125,000 in the partnership, what is Eberle's capital balance after Newman's admittance?
| $175,000. |
| $160,000. |
| $150,000. |
| $158,333. |
13 years ago
Purchase the answer to view it
- finance_quiz.doc