Question 1

The future value of 1 factor will always be

Accepted Answer

A)  equal to 1. 
B)  greater than 1. 
C)  less than 1. 
D)  equal to the interest rate. 
A)  equal to 1. 
B)  greater than 1. 
C)  less than 1. 
D)  equal to the interest rate.

Question 2

A $10,000, 6%, 5-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?

Accepted Answer

A)  5 interest periods, 6% interest 
B)  20 interest periods, 6% interest 
C)  20 interest periods, 1.5% interest 
D)  5 interest periods, 1.5% interest 
A)  5 interest periods, 6% interest 
B)  20 interest periods, 6% interest 
C)  20 interest periods, 1.5% interest 
D)  5 interest periods, 1.5% interest

Question 3

Ward Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals.
Transactions
Oct. 5 Purchased merchandise on account for $15,000 from Groton Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy.
Oct. 8 Purchased supplies on account for $700 from Flynn Supply Company. Terms: 2/10, n/30.
Oct. 11 Purchased merchandise on account for $14,000 from Buehler Corporation. Terms: 2/10, n/30; FOB shipping point.
Oct. 13 Issued a debit memorandum for $3,000 to Buehler Corporation for merchandise purchased on October 11 and returned because of damage.
Oct. 15 Paid Groton Company for merchandise purchased on October 5, less discount.
Oct. 16 Purchased merchandise for $8,000 cash from Clifford Company.
Oct. 21 Paid Buehler Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount.
Oct. 25 Purchased merchandise on account for $22,000 from Dooley Company. Terms: 2/10, n/30; FOB shipping point.
Oct. 31 Purchased office equipment for $30,000 cash from Paten Office Supply Company.

Accepted Answer

The answer of Ward Company uses a single-column purchases journal,...

Question 4

Repair costs incurred in honoring warranty contracts should be debited to Warranty Liability.

Accepted Answer

A) True 
 B)False

Question 5

Luis Rodriguez wants to buy a car in 3 years. He will need $3,000 for a down payment. The annual interest rate is 9%. How much money must Luis invest today for the purchase?

Accepted Answer

in the tex

Question 6

Warren Company's payroll for the week ending January 15 amounted to $200,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages:   Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.
Instructions
Prepare the journal entries to record the weekly payroll ending January 15 and the employer's payroll tax expense on the payroll for January 15.

Accepted Answer

@#IMG-DLM& (To record employer

Question 7

Interest is the difference between the amount borrowed and the principal.

Accepted Answer

A) True 
 B)False

Question 8

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Accepted Answer

A) True 
 B)False

Question 9

Match between columns
                        Premises: A contractual arrangement that gives the lessee temporary use of property.
The cash paid by the employer to the pension plan is defined.
A contractual arrangement which is in effect a purchase of property.
A liability of uncertain timing or amount.
A potential liability that may become an actual liability in the future.

Accepted Answer

The Answer of Finance lease and Contingent liability and Operating is...

Question 10

Posting a sales journal to the accounts in the general ledger requires a

Accepted Answer

A)  debit to Cash and a credit to Sales Revenue. 
B)  debit to Sales and a credit to Inventory. 
C)  debit to Accounts Receivable and a credit to Cost of Goods Sold. 
D)  debit to Accounts Receivable and a credit to Sales Revenue. 
A)  debit to Cash and a credit to Sales Revenue. 
B)  debit to Sales and a credit to Inventory. 
C)  debit to Accounts Receivable and a credit to Cost of Goods Sold. 
D)  debit to Accounts Receivable and a credit to Sales Revenue.

Question 11

Changes in pay rates during employment should be authorized by the

Accepted Answer

A)  personnel department. 
B)  payroll department. 
C)  treasurer's department. 
D)  timekeeping department. 
A)  personnel department. 
B)  payroll department. 
C)  treasurer's department. 
D)  timekeeping department.

Question 12

CVS leases a building for 20 years. The lease requires 20 annual payments of $10,000 each, with the first payment due immediately. The interest rate in the lease is 10%. What is the present value of the cost of leasing the building?

Accepted Answer

The answer of CVS leases a building for 20 years....

Question 13

In a lease contract,

Accepted Answer

A)  the owner of the property is called the lessee. 
B)  the presence of a bargain purchase option indicates that it is a finance lease. 
C)  the renter of the property is called the lessor. 
D)  there is always a transfer of ownership at the end of the lease term. 
A)  the owner of the property is called the lessee. 
B)  the presence of a bargain purchase option indicates that it is a finance lease. 
C)  the renter of the property is called the lessor. 
D)  there is always a transfer of ownership at the end of the lease term.

Question 14

In order to compute the present value of an annuity, it is necessary to know the

Accepted Answer

A)  discount rate. 
B)  number of discount periods and the amount of the periodic payments/receipts. 
C)  both the discount rate and the number of discount periods and the amount of the periodic payments/receipts. 
D)  something in addition to the discount rate and the number of discount periods and the amount of the periodic payments/receipts. 
A)  discount rate. 
B)  number of discount periods and the amount of the periodic payments/receipts. 
C)  both the discount rate and the number of discount periods and the amount of the periodic payments/receipts. 
D)  something in addition to the discount rate and the number of discount periods and the amount of the periodic payments/receipts.

Question 15

Control accounts are always located in the general ledger.

Accepted Answer

A) True 
 B)False

Question 16

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

Accepted Answer

A) True 
 B)False

Question 17

Match between columns
                        Premises: Distribution of checks by the treasurer.
Supervisor approves hours worked.
Posting job openings.
Maintenance of payroll records.
Verification of payroll calculations.
Screening and interviewing of job applicants.
Employment authorization.
Signing prenumbered payroll checks.
Use of a timeclock.
Payroll tax return preparation.
Employee signs receipt acknowledging cash received.
Documentation of employee hiring.

Accepted Answer

The Answer of H = Hiring Employees and T = is...

Question 18

The factor 1.0609 is taken from the 3% column and 2 periods row in certain table. From what table is this factor taken?

Accepted Answer

A)  Future value of 1 
B)  Future value of an annuity of 1 
C)  Present value of 1 
D)  Present value of an annuity of 1 
A)  Future value of 1 
B)  Future value of an annuity of 1 
C)  Present value of 1 
D)  Present value of an annuity of 1

Question 19

A company would not likely use subsidiary ledgers for

Accepted Answer

A)  inventory. 
B)  retained earnings. 
C)  equipment. 
D)  accounts receivable. 
A)  inventory. 
B)  retained earnings. 
C)  equipment. 
D)  accounts receivable.

Question 20

The payroll is paid by the

Accepted Answer

A)  personnel department. 
B)  payroll department. 
C)  cashier. 
D)  treasurer's department. 
A)  personnel department. 
B)  payroll department. 
C)  cashier. 
D)  treasurer's department.

The future value of 1 factor will always be

A $10,000, 6%, 5-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?

Repair costs incurred in honoring warranty contracts should be debited to Warranty Liability.

Luis Rodriguez wants to buy a car in 3 years. He will need $3,000 for a down payment. The annual interest rate is 9%. How much money must Luis invest today for the purchase?

Interest is the difference between the amount borrowed and the principal.

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Posting a sales journal to the accounts in the general ledger requires a

Changes in pay rates during employment should be authorized by the

CVS leases a building for 20 years. The lease requires 20 annual payments of $10,000 each, with the first payment due immediately. The interest rate in the lease is 10%. What is the present value of the cost of leasing the building?

In a lease contract,

In order to compute the present value of an annuity, it is necessary to know the

Control accounts are always located in the general ledger.

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

The factor 1.0609 is taken from the 3% column and 2 periods row in certain table. From what table is this factor taken?

A company would not likely use subsidiary ledgers for

The payroll is paid by the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 15: Accounting Principles and Contingent Liabilities in Business Operations

The future value of 1 factor will always be

A $10,000, 6%, 5-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?

Repair costs incurred in honoring warranty contracts should be debited to Warranty Liability.

Luis Rodriguez wants to buy a car in 3 years. He will need $3,000 for a down payment. The annual interest rate is 9%. How much money must Luis invest today for the purchase?

Interest is the difference between the amount borrowed and the principal.

A debit column for Sales Returns and Allowances may be found in the cash payments journal.

Posting a sales journal to the accounts in the general ledger requires a

Changes in pay rates during employment should be authorized by the

CVS leases a building for 20 years. The lease requires 20 annual payments of $10,000 each, with the first payment due immediately. The interest rate in the lease is 10%. What is the present value of the cost of leasing the building?

In a lease contract,

In order to compute the present value of an annuity, it is necessary to know the

Control accounts are always located in the general ledger.

A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.

The factor 1.0609 is taken from the 3% column and 2 periods row in certain table. From what table is this factor taken?

A company would not likely use subsidiary ledgers for

The payroll is paid by the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters