Financial Accounting

When Patrick purchased his home, he borrowed $150,000 from his bank at 6% intere

When Patrick purchased his home, he borrowed $150,000 from his bank at 6% interest rate per year to be repaid in 180 equal annual end-of-month payments in 15 years. After making 1…

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,00

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated v…

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,00

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated v…

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,00

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated v…

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,00

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated v…

When Resisto Systerre, lrc., ses formed, tit corrperyne: autrized lo ssue 5.000

When Resisto Systerre, lrc., ses formed, tit corrperyne: autrized lo ssue 5.000 steres of S100 per velue, prefered stock. "d 100,000 :hares o, $2 seed velve con"ror stock. percent…

When S disposes of an asset prematurely and records a gain, how does that affect

When S disposes of an asset prematurely and records a gain, how does that affect the consolidated financial statements? S cannot record a gain on the sale of the asset. The workpa…

When S1 died, his executor was given broad authority over his $9,000,000 estate.

When S1 died, his executor was given broad authority over his $9,000,000 estate. The executor is considering two options -- Fund a QTIP trust with S1's estate and make a QTIP elec…

When SB Corporation purchased Banner Corporation in the current year, SB recorde

When SB Corporation purchased Banner Corporation in the current year, SB recorded $1,500,000 of goodwill. How should SB account for the goodwill after the acquisition? The goodwil…

When Waterways’ management met to review the year-end financial statements, the

When Waterways’ management met to review the year-end financial statements, the room was filled with excitement. Sales had been exceptional during the year and every department ha…

When Waterways’ management met to review the year-end financial statements, the

When Waterways’ management met to review the year-end financial statements, the room was filled with excitement. Sales had been exceptional during the year and every department ha…

When Weepin\' Willie formed Hard Luck Inc.under § 351, he transferred property (

When Weepin' Willie formed Hard Luck Inc.under § 351, he transferred property (basis: $26,000; FMV: $22,500) for § 1244 stock. Hard Luck provided divination services to help pessi…

When XYZ management met to review the year-end financial statements, the room wa

When XYZ management met to review the year-end financial statements, the room was filled with excitement. Sales had been exceptional during the year and every department had excee…

When XYZ management met to review the year-end financial statements, the room wa

When XYZ management met to review the year-end financial statements, the room was filled with excitement. Sales had been exceptional during the year and every department had excee…

When a CPA departs a firm and takes another position in an entity that has an au

When a CPA departs a firm and takes another position in an entity that has an audit, it's unethical, a discreditable act, to use knowledge gained in public accounting to circumven…

When a US company makes a credit sale to an international customer and the sale

When a US company makes a credit sale to an international customer and the sale terms are for payment in a foreign currency, the foreign exchange rate used to record the sale is t…

When a bond is issued at a discount, the semiannual amount of interest expense w

When a bond is issued at a discount, the semiannual amount of interest expense will be greater than the cash payment for interest. when a bond is issued at a discount, the semiann…

When a bond is sold at a discount, the cash received is less than the present va

When a bond is sold at a discount, the cash received is less than the present value of the future cash flows from the bond, based on the market rate of interest on the date of iss…

When a business factors its accounts receivables, this means that the business _

When a business factors its accounts receivables, this means that the business ________. A) uses the receivables as security for a loan B) no longer has to deal with the collectio…

When a capital project has been constructed entirely with bond proceeds and fund

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project, which of the following would normally take place. A. The…

When a company delivers a product or service for which a customer has previously

When a company delivers a product or service for which a customer has previously paid, the company records the following: a. A debit to a revenue account and a credit to a liabili…

When a company discards machinery that is fully depreciated, this transaction wo

   When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry a. debit Machinery; credit Accumulated Depreciation b. …

When a company exchanges machinery and receives a trade-in allowance greater tha

When a company exchanges machinery and receives a trade-in allowance greater than the book value, this transaction would be recorded with the following entry (assuming the exchang…

When a company is used to cover up fraud, a court may ignore the limited liabili

When a company is used to cover up fraud, a court may ignore the limited liability of the owners.  This is called a. the business judgment rule b. use of the proxy c. cumulative v…

When a company lets customers buy on credit, the company attracts more customers

When a company lets customers buy on credit, the company attracts more customers. Allowing sales on credit is a part of doing business. However, it is not without risk! The result…

When a company receives rental payment in advance, U.S. GAAP requires that those

When a company receives rental payment in advance, U.S. GAAP requires that those payments not be recorded as revenue until the future period in which they are earned. U.S. Tax Law…

When a company uses excess cash to buy back some of its outstanding common stock

When a company uses excess cash to buy back some of its outstanding common stock, which of the following ratios will be affected directly in the manner described below? A) earning…

When a company uses special journals, the general journal is used for selected t

When a company uses special journals, the general journal is used for selected transactions and events including: Recording adjusting transactions. Posting transactions to special…

When a corporation completes a 3-for-1 stock split the ownership interest of cur

When a corporation completes a 3-for-1 stock split the ownership interest of current stockholders is decreased the market price per share of the stock is decreased the par value p…

When a corporation has only one class of stock, the stock is called: 1. No-par v

When a corporation has only one class of stock, the stock is called: 1. No-par value stock. 2. Preferred stock. 3. Par value stock. 4. Common stock. 5. Stated value stock. When a …

When a cost base does not change regardless of the activity the cost is a fixed

When a cost base does not change regardless of the activity the cost is a fixed cost. True False 1 points    QUESTION 2 Fix cost does not remain consistent when activity changes. …

When a country adopts a currency board, its central bank: Question 18 options: k

When a country adopts a currency board, its central bank: Question 18 options: keeps the exchange rate fixed to another currency. holds enough foreign reserve to back every unit o…

When a customer buys services on account, it should be recorded by the company a

When a customer buys services on account, it should be recorded by the company as: Answer a debit to Cash and a credit to Accounts Receivable. a debit to Accounts Receivable and a…

When a customer pays in advance for a product or service such as a prepaid insur

When a customer pays in advance for a product or service such as a prepaid insurance policy, the business that sold that item will record the cash received as an asset and the fut…

When a group of 50 home-schooling parents in California form a nonprofit members

When a group of 50 home-schooling parents in California form a nonprofit membership organization to buy teaching materials at a discount, the parents have probably formed a (a. sy…

When a large Omaha Department store moved to a new location, Linda Butler was hi

When a large Omaha Department store moved to a new location, Linda Butler was hired as the new shoe department manager. Harold Knox, who retired, had been the manager at the old l…

When a marketer selects the countries and segments that can serve most efficient

When a marketer selects the countries and segments that can serve most efficiently she or she is engaging in: 2. the company a. b. C. Market segmentation Market targeting Market p…

When a nation chooses to fix or float its currency exchange rate, it should cons

When a nation chooses to fix or float its currency exchange rate, it should consider a. only its domestic banks, importers, and exports. b. only whether it has a great deal of eco…

When a parent uses the equity method throughout the year to account for investme

When a parent uses the equity method throughout the year to account for investment in a subsidiary, which of the following statements is false after making adjustments on the cons…

When a parent uses the partial equity method throughout the year to account for

When a parent uses the partial equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making …

When a party to a contract does not meet its performance obligation despite havi

When a party to a contract does not meet its performance obligation despite having no legal excuse not to perform what does that constitute? In what position does the law seek to …

When a share of stock is first sold, the amount received by the company may be d

When a share of stock is first sold, the amount received by the company may be different from the amount printed on the stock certificate. Any amount over that printed amount will…

When a statement of cash flows is prepared using the indirect methoo: Select one

When a statement of cash flows is prepared using the indirect methoo: Select one: a. Net income is the starting point in determining cash flows from Investments b. Cash paid for d…

When a stock dividend is declared, the market value of the stock is transferred

When a stock dividend is declared, the market value of the stock is transferred from Retained Eamings into other stockholder equity accounts (reclassify retained earnings to the s…

When a supplier makes a downward adjustment in the amount owed by a creditor, th

When a supplier makes a downward adjustment in the amount owed by a creditor, the creditor will: reduce the amount of the account payable to the supplier, and decrease an asset su…

When a taxpayer receives a larger Earned Income Credit amount after adding a Sch

When a taxpayer receives a larger Earned Income Credit amount after adding a Schedule C to their return than they would have received without it, the Tax Professional must _______…

When a taxpayer signs a return under penalties of perjury he or she is attesting

When a taxpayer signs a return under penalties of perjury he or she is attesting to the fact that: A. the taxpayer has examined the return and assures that the information contain…

When a variance is recorded in a standard cost system, a credit entry reflects a

When a variance is recorded in a standard cost system, a credit entry reflects a(n). Albertville has a material standard of 1 pound per unit of output. Each pound has n standard p…

When absorption costing is compared with job order costing, O entries in the gen

When absorption costing is compared with job order costing, O entries in the general ledger for job order costing are different from those in absorption costing O both require usi…

When all premiums on callable debt securities should be amortized to the earlies

When all premiums on callable debt securities should be amortized to the earliest call date and all discounts on callable debt securities should amortize to the maturity date. Wha…