HI, I need help on couple of questions.
HI, I need help on couple of questions.
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47.
Generally accepted accounting principles (GAAP) require the use of fair value
accounting for all assets and liabilities.
Select one:
True
False
45.
Foreign currency translation adjustment is an example of an item that would be included
in Other Comprehensive Income.
Select one:
True
39.
Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a
balance of $10,000. If the issuing corporation redeems the bonds at 103, what is the
amount of gain or loss on redemption?
Select one:
a. $1,200 loss
b. $1,200 gain
c. $17,000 loss
d. $17,000 gain
37.
The balance in Discount on Bonds Payable
Select one:
a. should be reported on the balance sheet as an asset because it has a debit balance
b. should be allocated to the remaining periods for the life of the bonds by the straight-line
method, if the results obtained by that method materially differ from the results that would be
obtained by the interest method
c. would be added to the related bonds payable to determine the carrying amount of the
bonds
d. would be subtracted from the related bonds payable on the balance sheet
29.
Treasury Stock is listed in the stockholders equity section on the balance sheet.
Select one:
True
False
22.
A corporation has 10,000 shares of $100 par value stock outstanding. If the corporation
issues a 5-for-1 stock split, the number of shares outstanding after the split will be 40,000.
Select one:
True
21.
Treasury stock shares are
Select one:
a. shares held by the U.S. Treasury Department
b. part of the total outstanding shares but not part of the total issued shares of a corporation
c. unissued shares that are held by the treasurer of the corporation
d. issued shares that have been reacquired by a corporation
20.
Franco and Elisa share income equally. During the current year the partnership net
income was $40,000. Franco made withdrawals of $12,000 and Elisa made withdrawals of
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$17,000. At the beginning of the year, the capital account balances were: Franco capital,
$42,000; Elisa capital, $58,000. Elisa’s capital account balance at the end of the year is
Select one:
a. $81,000
b. $50,000
c. $61,000
d. $95,000
19.
Benson and Orton are partners who share income in the ratio of 1:3 and have capital
balances of $70,000 and $30,000 respectively. Ramsey is admitted to the partnership and
is given a 40% interest by investing $20,000. What is Orton’s capital balance after admitting
Ramsey?
Select one:
a. $20,000
b. $9,000
c. $70,000
d. $63,000
18.0
Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a
partnership. The articles of partnership include the following provisions regarding the
division of net income: interest on original investment at 10%, salary allowances of $38,000
and $28,000 respectively, and the remainder equally. How much of the net income of
$75,000 is allocated to Xavier?
Select one:
a. $66,000
b. $40,000
c. $35,000
d. $43,000
17.
The capital accounts of Harrison and Marti have balances of $180,000 and $130,000,
respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10,
Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew
$96,000 and $78,000, respectively, and net income for the year was $248,000. The articles
of partnership make no reference to the division of net income.
Based on this information, the statement of partners’ equity for 2010 would show what
amount as total capital for the partnership on December 31, 2010?
Select one:
a. $228,000
b. $176,000
c. $404,000
d. $752,000
