Navigation » List of Schools » Glendale Community College » Accounting » Accounting 101 – Financial Accounting » Spring 2021 » Chapter 8 Quiz
Below are the questions for the exam with the choices of answers:
Question #1
A $12,000
B $0
C $24,000
D $8,000
Question #2
A The current ratio will always be at least as large as the acid-test ratio.
B The acid-test ratio will always be at least as large as the current ratio.
C The denominator in the ratios will differ.
D Sometimes the current ratio will be larger and sometimes the acid-test ratio will be larger.
Question #3
A Current liabilities divided by current assets.
B Cash, short-term investments, accounts receivable, and inventory divided by current liabilities.
C Current assets divided by current liabilities.
D Cash, short-term investments, and accounts receivable divided by current liabilities.
Question #4
A Issuing common stock for cash.
B Purchasing inventory on account.
C Purchasing equipment, signing a long-term note.
D Collecting an accounts receivable.
Question #5
A Federal income tax.
B FICA withholding from the employee.
C State income tax.
D Employer’s FICA contribution.
Question #6
A $0
B $1.5 million.
C $1.8 million.
D $2.0 million.
Question #7
A $150,000.00
B $600,000.00
C $450,000
D $300,000.00
Question #8
A $10,000
B $30,000
C $5,000
D $25,000
Question #9
A $3.0 million.
B $1.5 million.
C $0.00
D $4.5 million.
Question #10
A State unemployment taxes.
B Federal unemployment taxes.
C FICA taxes.
D Personal income taxes.
Question #11
A Resulting from past transactions or events.
B A probable future sacrifice of economic benefits.
C Arising from present obligations to other entities, Resulting from past transactions or events and A probable future sacrifice of economic benefits.
D
E Arising from present obligations to other entities.
Question #12
A
B Liabilities represent probable future sacrifices of benefits.
C Liabilities are all reported as current in the balance sheet.
D Liabilities result from future transactions.
E Liabilities are always payable in cash.
Question #13
A Accounts payable.
B Accounts receivable.
C Current investment in marketable securities.
D Inventory.
Question #14
A $5,000
B $25,000
C $10,000
D $30,000
Question #15
A Debit interest expense and credit interest payable, $4,000.
B Debit interest expense and credit interest payable, $12,000.
C Debit interest expense and credit cash, $12,000.
D Debit interest expense and credit cash, $4,000.
Question #16
A Recorded.
B Not disclosed.
C Disclosed.
D Paid.
Question #17
A The interest is paid.
B The interest is paid and incurred.
C The interest is incurred.
D The interest is paid or incurred.
Question #18
A Increase the current ratio and decrease the acid-test ratio.
B Decrease the current ratio and decrease the acid-test ratio.
C Increase the current ratio and increase the acid-test ratio.
D No change to the current ratio and decrease the acid-test ratio.
Question #19
A As a liability for $700,000 with disclosure of the range.
B As a liability for $600,000 with disclosure of the range.
C As a disclosure only. No liability is reported.
D As a liability for $500,000 with disclosure of the range.
Question #20
A Disclosed but not reported as a liability.
B Reported as a liability but not disclosed.
C Disclosed and reported as a liability.
D Neither disclosed or reported as a liability.
Question #21
A Deferred revenue to be earned in nine months.
B An unused line of credit.
C Notes payable due in six months.
D Current portion of long-term debt.
Question #22
A A debit to a revenue and a credit to an asset account.
B A debit to a revenue and a credit to a liability account.
C A debit to a liability and a credit to a revenue account.
D A debit to an asset and a credit to a revenue account.
Question #23
A two; two
B one; ten
C one; one
D one; two
Question #24
A Decrease the current ratio and decrease the acid-test ratio.
B Increase the current ratio and increase the acid-test ratio.
C Increase the current ratio and decrease the acid-test ratio.
D No change to the current ratio and decrease the acid-test ratio.
Question #25
A Debit Notes Receivable, $5,000; Credit Cash, $5,000.
B Debit Cash, $5,000; Credit Notes Payable, $5,000.
C Debit Notes Payable, $5,000; Credit Cash, $5,000.
D Debit Cash, $5,000; Credit Notes Receivable, $5,000.
Question #26
A Notes payable due in 15 months.
B Notes payable due in two years.
C Current portion of long-term debt.
D Unused line of credit.
Question #27
A Debit Cash, $5,000; Credit Notes Payable, $5,000.
B Debit Notes Receivable, $5,000; Credit Cash, $5,000.
C Debit Cash, $5,000; Credit Notes Receivable, $5,000.
D Debit Notes Payable, $5,000; Credit Cash, $5,000.
Question #28
A It represents a probable, future sacrifice of economic benefits.
B It results from past transactions or events.
C It arises from present obligations to other entities.
D It must be payable in cash.
Question #29
A Revenue.
B Expense.
C Asset.
D Liability.
Question #30
A A debit to a revenue and a credit to an asset account.
B A debit to an asset and a credit to a liability account.
C A debit to a liability and a credit to a revenue account.
D A debit to an asset and a credit to a revenue account.