1. Which of the following accounts is credited by the seller when tax is collected on retail sales?
|Sales Tax Payable|
1. Which of the following is the amount the borrower must pay back to the bondholders at maturity?
|Stated interest value|
1. Which of the following describes a serial bond?
|A bond that matures in installments at regular intervals|
|A bond that gives the bondholder a claim for specific assets|
|A bond that matures at one specified time|
|A bond that is not backed by specific assets|
1. If bonds with a face value of $205,000 are issued at par, the amount of cash proceeds is __________.
1. Which of the following is a liability account?
1. Which of the following would be included in the journal entry to record the payment of sales tax payable?
|A debit to Sales Tax Payable|
|A credit to Sales Tax Expense|
|A debit to Sales Tax Expense|
|A credit to Sales Tax Payable|
1. Pluto Corp. sold goods, with a selling price of $9,021, for cash. The state sales tax rate is 10%. What amount is credited to the Sales Revenue account?
1. Barter, Inc. sold goods for $894,500 on account. The company operates in a state that imposes a 6% sales tax. What is the amount of the sales tax payable to the state?
1. Amounts owed for products or services purchased on account are called __________.
1. Which of the following is a characteristic of a current liability?
|It creates a present obligation for future payment of cash or services.|
|It cannot be settled with services.|
|It is an avoidable obligation.|
|It occurs because of a future transaction or event.|
1. Which term refers to the process by which businesses prepare their financial statements?
|Post-closing balance journaling|
|Trial balance calculation|
|The accounting cycle|
1. Justice Company purchased a machine for $50,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine.
1. Which of the following is recorded on the left side of a T-account?
1. Dynamic Production Services started the year with total assets of $180,000 and total liabilities of $80,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $150,000 and $75,000, respectively. During the year, there were no new capital contributions and the owner withdrew $60,000. Calculate Dynamic’s net income for the year.
1. What are the two types of inventory accounting systems used by businesses?
|FIFO and LIFO|
|Perpetual and periodic|
|Wholesale and retail|
|Manufacturer and producer|
1. The goal of reporting realistic figures and never overstating assets or net income applies to the __________.
1. Which of the following keeps accountants from having to report every item in strict accordance with the accounting principles?
1. The equity of Capital Company is $200,000 and the total liabilities are $30,000. The total assets are ___________.
1. The expected value of a depreciable asset at the end of its useful life is called __________.
1. Which of the following organizations published standards that serve as global accounting guidelines used by over 120 countries?
|International Accounting Standards Board (IASB)|
|Public Company Accounting Oversight Board (PCAOB)|
|Financial Accounting Standards Board (FASB)|
|American Institute of Certified Public Accountants (AICPA)|