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