ACCT 212 Week 5 Quiz – 100% Correct Answers- Download To Score An A+

(TCO 6) Which of the following is a natural resource?

Patents Timber Gas reserves both B and C Flag this Question

(TCO 6) Depreciation expense allocates a portion of the cost of an asset against the revenue the asset helps earn each period.is not required for plant assets according to GAAP.is reported on the balance sheet.is required for land according to GAAP.

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(TCO 6) Natural resources

are not physically used up over time.have a contra account, accumulated amortization.are recorded on the books using the relative sales-value method.are depleted using the unit-of-production method.Flag this Question

(TCO 6) When an investor owns between 20% and 50% of the outstanding stock of another company, the method is used to account for stock investments.

market value equity consolidated historical cost.Flag this Question Question 43 pts Question 33 pts Question 23 pts Question 13 pts

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(TCO 6) Which of the following is not necessary to know in computing the future value of an annuity?

Amount of the initial payment Interest rate Length of time between investment and payment Year the payments begin Flag this Question

(TCO 6) A current liability is a debt that can reasonably be expected to be paid

within 1 year or the company's normal operating cycle (if it is longer than 1 year).between 6 months and 18 months.out of cash on hand.out of current revenues.

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(TCO 6) Failure to record an accrued liability causes a company to

overstate income.overstate assets.understate liabilities.understate owners' equity.

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(TCO 6) If the market interest rate is greater than the stated interest rate, bonds will sell

at face value.at a discount.at a premium.at market value.Flag this Question

(TCO 6) Bonds which are backed only by the good faith of the borrower are referred to as

junk bonds.unregistered bonds.Question 93 pts Question 83 pts Question 73 pts Question 63 pts Question 53 pts

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debenture bonds.callable bonds.Flag this Question Question 103 pts (TCO 6) A disadvantage of using bonds as a method of long-term financing is that

interest must be paid regardless of earnings.interest expense is tax deductible.bond holders do not have voting rights.issuing bonds results in higher earnings per share.