APU ACCT300/ACCT 300 Week 5 quiz 5 (ALL CORRECT)

Question

Question 1 of 20

5.0/ 5.0 Points

The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:

A. depletion.

B. deferral.

C. amortization.

D. depreciation.

Question 2 of 20

0.0/ 5.0 Points

The market interest rate related to a bond is also called the:

 A. stated interest rate.

B. effective interest rate.

C. contract interest rate.

D. straight-line rate.

Question 3 of 20

0.0/ 5.0 Points

A company sold office furniture costing $16,500 with accumulated depreciation of $14,000 for $1,800 cash. The entry to record the sale would include:

A.    a loss for $700.

 B. an increase in accumulated depreciation for $14,000.

C. a total decrease in office furniture for $2,500.

D. a decrease in cash for $1,800.

Question 4 of 20

5.0/ 5.0 Points

The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:

A. depletion.

B. deferral.

C. amortization.

D. depreciation.

Question 5 of 20

5.0/ 5.0 Points

Which of the following is not an intangible asset?

A. Goodwill

B. Trademark

C. Copyright

D. Long-term receivable

Question 6 of 20

5.0/ 5.0 Points

A bond is simply a form of an interest-bearing note.

A. true

B. False

Question 7 of 20

5.0/ 5.0 Points

What options does a business have while financing its operations?

A. Debt financing

B. Equity financing

C. Asset financing

D. Both debt financing and equity financing

Question 8 of 20

5.0/ 5.0 Points

Expenditures made to extend an asset’s life are called revenue expenditures.

A. True

B. False

Question 9 of 20

5.0/ 5.0 Points

The exclusive right to use a certain name or symbol is called a:

A. franchise.

B. patent.

C. trademark.

D. copyright.

Question 10 of 20

5.0/ 5.0 Points

The accounting term depreciation measures:

A. the decline in an asset’s market value.

B. the amount of cash a company sets aside for asset replacement.

C. the amount of asset cost allocated to expense over periods benefited.

D. the anticipated loss if asset is sold in the used-asset market.

Question 11 of 20

5.0/ 5.0 Points

If paid-in capital in excess of par-preferred stock is $80,000, preferred stock is $500,000, paid-in capital in excel of par-common stock is $50,000, common stock is $1,000,000, and retained earnings is $230,000, the total stockholders’ equity is $1,860,000.

A. True

B. False

Question 12 of 20

5.0/ 5.0 Points

A current liability is a debt that is reasonable expected to be paid:

A. between 6 months and 18 months.

B. out of currently recognized revenues.

C. within one year.

D. out of cash currently on hand.

Question 13 of 20

0.0/ 5.0 Points

Which of the following is a reason to undergo a reverse stock split?

A. To reduce the stock’s market price per share.

B. To increase total stockholders’ equity.

C. To reduce total stockholders’ equity.

D. To increase the market value of the stock per share.

Question 14 of 20

5.0/ 5.0 Points

Stockholders’ equity:

A. is usually equal to cash on hand.

B. includes paid-in capital and total liabilities.

C. includes retained earnings and paid-in capital.

D. is shown on the income statement.

Question 15 of 20

5.0/ 5.0 Points

A current liability is a debt that is reasonable expected to be paid:

A. between 6 months and 18 months.

B. out of currently recognized revenues.

C. within one year.

D. out of cash currently on hand.

Question 16 of 20

0.0/ 5.0 Points

Fixed assets are reported at their book value on the balance sheet.

In

A. True

B. False

Question 17 of 20

5.0/ 5.0 Points

Which of the following expenditures would not be included in the cost of a fixed asset?

A. Freight costs

B. Vandalism

C. Sales taxes

D. Surveying fees

Question 18 of 20

5.0/ 5.0 Points

The balance in Accumulated Depreciation account is deducted from the cost of fixed assets on the balance sheet.

A. True

B. False

Question 19 of 20

5.0/ 5.0 Points

For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?

A.$5.00

B.$2.50

C.$6.00

D.$3.00

Question 20 of 20

0.0/ 5.0 Points

Which of the following is a reason to undergo a reverse stock split?

A. To reduce the stock’s market price per share.

B. To increase total stockholders’ equity.

C. To reduce total stockholders’ equity.

D. To increase the market value of the stock per share.