When a note is discounted at a bank, it is normally done with recourse.
a. True
b. False
Tulsa Corp. reported the following information for 2015 and 2016.
How much cash was paid for interest during 2016?
a. $11,750
b. $12,250
c. $12,500
d. $12,750
Identify where each of the following accounts would be reported on CocaÂCola’s
financial statements.
a. Balance Sheet-Property, Plant, and Equipment
b. Balance Sheet-Intangible Assets
c. Balance Sheet-Current Assets
d. Balance Sheet-Other Assets
e. Income Statement-Operating Section
f. Income Statement-Other Revenue and Expense Section
g. Statement of Cash Flows
Patents
Match the following characteristics with the statements about each qualitative characte
ristic’s importance.
a. Consistency
b. Materiality
c. Conservatism
d. Comparability
e. Reliability
f. Relevance
g. Understandability
This quality refers to an amount large enough to affect a decision.
Which one of the following is an investing activity of a business?
a. Paying for purchases of inventory
b. Issuing stock for cash
c. Borrowing money from a bank
d. Purchasing a manufacturing plant for cash
Accountants need not worry about calculations based upon the concept of the time
value of money.
a. True
b. False
Latahmer Corporation is reconciling its May bank account. For each item listed, state
how it would be handled on the bank reconciliation.
a. Addition to bank balance
b. Subtraction from bank balance
c. Addition to book balance
d. Subtraction from book balance
e. Would not appear on the May reconciliation
Check written in May that does not appear on the bank statement
MusicCorporation The data below is for Music Corporation for 2015.
Refer to the data for Music Corporation.If the aging approach is used to estimate bad
debts, what is the balance in the Allowance for Doubtful Accounts after the bad debt
expense adjustment?
a. $8,000
b. $8,100
c. $8,900
d. $9,600
The selection of a particular inventory valuation method has a significant effect on
certain key ratios.
a. True
b. False
Carrington, Inc. recorded $97,000 in salary expense for January, 2015. Its beginning
balance in salaries payable was $3,000 and its ending balance was $4,000. How much
was paid in cash for salaries during January, 2015?
a. $96,000
b. $97,000
c. $98,000
d. $99,000
Gyro’s Shop reported a net loss of $15,000 and total expenses of $80,000. How much
are total revenues?
a. $ 15,000
b. $ 65,000
c. $ 95,000
d. The answer cannot be determined from the information given.