Question 1 of 20

5.0/ 5.0 Points

The process of transferring the cost of metal ores and other
minerals removed from the earth to an expense account is called:

A.depletion.

B.deferral.

C.amortization.

D.depreciation.

Answer Key:

Question 2 of 20

0.0/ 5.0 Points

The market interest rate related to a bond is also called
the:

In A.stated
interest rate.

B.effective interest
rate.

C.contract interest
rate.

D.straight-line rate.

Answer Key:

Question 3 of 20

0.0/ 5.0 Points

A company sold office furniture costing $16,500 with
accumulated depreciation of $14,000 for $1,800 cash. The entry to record the
sale would include:

A.a loss for $700.

In B.an
increase in accumulated depreciation for $14,000.

C.a total decrease in
office furniture for $2,500.

D.a decrease in cash
for $1,800.

Answer Key:

Question 4 of 20

5.0/ 5.0 Points

The process of transferring the cost of metal ores and other
minerals removed from the earth to an expense account is called:

A.depletion.

B.deferral.

C.amortization.

D.depreciation.

Answer Key:

Question 5 of 20

5.0/ 5.0 Points

Which of the following is not an intangible asset?

A.Goodwill

B.Trademark

C.Copyright

D.Long-term receivable

Answer Key: D

Question 6 of 20

5.0/ 5.0 Points

A bond is simply a form of an interest-bearing note.

A. true

B. False

Answer Key:

Question 7 of 20

5.0/ 5.0 Points

What options does a business have while financing its
operations?

A.Debt financing

B.Equity financing

C.Asset financing

D.Both debt financing and equity financing

Answer Key:

Question 8 of 20

5.0/ 5.0 Points

Expenditures made to extend an asset’s life are called
revenue expenditures.

A. True

B. False

Answer Key:

Question 9 of 20

5.0/ 5.0 Points

The exclusive right to use a certain name or symbol is
called a:

A.franchise.

B.patent.

C.trademark.

D.copyright.

Answer Key:

Question 10 of 20

5.0/ 5.0 Points

The accounting term depreciation measures:

A.the decline in an
asset’s market value.

B.the amount of cash
a company sets aside for asset replacement.

C.the amount of asset cost allocated to
expense over periods benefited.

D.the anticipated loss
if asset is sold in the used-asset market.

Answer Key:

Question 11 of 20

5.0/ 5.0 Points

If paid-in capital in excess of par-preferred stock is
$80,000, preferred stock is $500,000, paid-in capital in excel of par-common
stock is $50,000, common stock is $1,000,000, and retained earnings is
$230,000, the total stockholders’ equity is $1,860,000.

A. True

B. False

Answer Key:

Question 12 of 20

5.0/ 5.0 Points

A current liability is a debt that is reasonable expected to
be paid:

A.between 6 months
and 18 months.

B.out of currently
recognized revenues.

C.within one year.

D.out of cash
currently on hand.

Answer Key:

Question 13 of 20

0.0/ 5.0 Points

Which of the following is a reason to undergo a reverse
stock split?

A.To reduce the
stock’s market price per share.

In B.To
increase total stockholders’ equity.

C.To reduce total
stockholders’ equity.

D.To increase the
market value of the stock per share.

Answer Key:

Question 14 of 20

5.0/ 5.0 Points

Stockholders’ equity:

A.is usually equal to
cash on hand.

B.includes paid-in
capital and total liabilities.

C.includes retained earnings and paid-in
capital.

D.is shown on the
income statement.

Answer Key:

Question 15 of 20

5.0/ 5.0 Points

A current liability is a debt that is reasonable expected to
be paid:

A.between 6 months
and 18 months.

B.out of currently
recognized revenues.

C.within one year.

D.out of cash
currently on hand.

Answer Key:

Question 16 of 20

0.0/ 5.0 Points

Fixed assets are reported at their book value on the balance
sheet.

In

A. True

B. False

Answer Key:

Question 17 of 20

5.0/ 5.0 Points

Which of the following expenditures would not be included in
the cost of a fixed asset?

A.Freight costs

B.Vandalism

C.Sales taxes

D.Surveying fees

Answer Key:

Question 18 of 20

5.0/ 5.0 Points

The balance in Accumulated Depreciation account is deducted
from the cost of fixed assets on the balance sheet.

A. True

B. False

Answer Key:

Question 19 of 20

5.0/ 5.0 Points

For the year that just ended, a company reports net income
of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and
250,000 shares of common stock outstanding. What is the earnings per share?

A.$5.00

B.$2.50

C.$6.00

D.$3.00

Answer Key:

Question 20 of 20

0.0/ 5.0 Points

Which of the following is a reason to undergo a reverse
stock split?

A.To reduce the
stock’s market price per share.

In B.To
increase total stockholders’ equity.

C.To reduce total
stockholders’ equity.

D.To increase the
market value of the stock per share.

Answer Key: