Accounting QUiz Final

Question 1. Stockholders' equity (Points : 2)
        is usually equal to cash on hand.
        includes paid-in capital and liabilities.
        includes retained earnings and paid-in capital.
        is shown on the income statement.


Question 2.2. Which statement below is NOT a reason for a corporation to buy back its own stock? (Points : 2)
        Resale to employees
        Bonus to employees
        For supporting the market price of the stock
        To increase the shares outstanding


Question 3.3. Current liabilities are (Points : 2)
        due but not receivable for more than one year.
        due but not payable for more than one year.
        due and receivable within one year.
        due and payable within one year.


Question 4.4. Gross earnings for a payroll period less payroll deductions are referred to as (Points : 2)
        overtime pay.
        bonus pay.
        gross pay.
        net pay.


Question 5.5. What options does a business have when financing operations? (Points : 2)
        Debt financing
        Equity financing
        Asset financing
        Both debt financing and equity financing


Question 6.6. How is treasury stock shown on the balance sheet? (Points : 2)
        As an asset
        As a decrease in stockholders' equity
        As an increase in stockholders' equity
        Treasury stock is not shown on the balance sheet.


Question 7.7. The total earnings of an employee for a payroll period are referred to as (Points : 2)
        take-home pay.
        pay net of taxes.
        net pay.
        gross pay.


Question 8.8. An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee? (Points : 2)
        $798.85
        $873.77
        $953.16
        $1,223.77


Question 9.9. Which of the following would most likely be classified as a current liability? (Points : 2)
        Two-year notes payable
        Bonds payable
        Mortgage payable
        Unearned rent


Question 10.10. A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be (Points : 2)
        200,000 shares.
        50,000 shares.
        250,000 shares.
        12,500 shares.