Question 1

Unearned revenue arises from the acceptance of payment in advance for a service to be performed.

Accepted Answer

A) True 
 B)False

Question 2

Payroll Taxes and Benefits Expense includes all of the following except

Accepted Answer

A) federal income taxes. 
B) Social Security taxes. 
C) Medicare taxes. 
D) unemployment taxes. 
A) federal income taxes. 
B) Social Security taxes. 
C) Medicare taxes. 
D) unemployment taxes.

Question 3

The lower the interest rate,the lower the future value factor.

Accepted Answer

A) True 
 B)False

Question 4

All factors in a future value table must be less than or equal to 1.000.

Accepted Answer

A) True 
 B)False

Question 5

Fergus Company is considering the purchase of a machine that will save the company $4,000 per year in operating costs for a period of seven years.The most it should pay for the machine is equal to

Accepted Answer

A) $4,000 times the present value of an ordinary annuity for 7 periods. 
B) $28,000. 
C) $4,000 divided by the future value of a single sum at the end of 7 periods. 
D) $4,000 times the future value of an ordinary annuity for 7 periods. 
A) $4,000 times the present value of an ordinary annuity for 7 periods. 
B) $28,000. 
C) $4,000 divided by the future value of a single sum at the end of 7 periods. 
D) $4,000 times the future value of an ordinary annuity for 7 periods.

Question 6

To calculate payables turnover,an increase in merchandise inventory must be added to cost of goods sold before dividing by average accounts payable.

Accepted Answer

A) True 
 B)False

Question 7

Calculate answers to the following using future value and/or present value tables:
a. What is the present value of receiving $1,000 at the end of each year for 6 years,assuming 7 percent interest compounded annually?
b. What amount must be deposited at the bank today to grow to $300 in five years,assuming 14 percent interest compounded semiannually?

Accepted Answer

a.$4,767.00 [($1,000

Question 8

The future value of an ordinary annuity table would not include the factor

Accepted Answer

A) 0.909. 
B) 2.010. 
C) 20.300. 
D) 1.000. 
A) 0.909. 
B) 2.010. 
C) 20.300. 
D) 1.000.

Question 9

Usually,failure to record a liability means failure to record a(n)

Accepted Answer

A) revenue. 
B) note. 
C) expense. 
D) asset. 
A) revenue. 
B) note. 
C) expense. 
D) asset.

Unearned revenue arises from the acceptance of payment in advance for a service to be performed.

Payroll Taxes and Benefits Expense includes all of the following except

The lower the interest rate,the lower the future value factor.

All factors in a future value table must be less than or equal to 1.000.

Fergus Company is considering the purchase of a machine that will save the company $4,000 per year in operating costs for a period of seven years.The most it should pay for the machine is equal to

To calculate payables turnover,an increase in merchandise inventory must be added to cost of goods sold before dividing by average accounts payable.

The future value of an ordinary annuity table would not include the factor

Usually,failure to record a liability means failure to record a(n)

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 11: Current Liabilities and Fair Value Accounting

Unearned revenue arises from the acceptance of payment in advance for a service to be performed.

Payroll Taxes and Benefits Expense includes all of the following except

The lower the interest rate,the lower the future value factor.

All factors in a future value table must be less than or equal to 1.000.

Fergus Company is considering the purchase of a machine that will save the company $4,000 per year in operating costs for a period of seven years.The most it should pay for the machine is equal to

To calculate payables turnover,an increase in merchandise inventory must be added to cost of goods sold before dividing by average accounts payable.

The future value of an ordinary annuity table would not include the factor

Usually,failure to record a liability means failure to record a(n)

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters