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