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Gagner Clinic purchases land for
$130,000
cash. The clinic assumes $
1,500
in property taxes due on the land. The title and attorney fees totaled
$1,000.
The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?
|
$134,700 |
|
$132,200 |
|
$132,500 |
|
Multiple Choice, Question 65 |
Hull Company acquires land for $86,000 cash. Additional costs are as follows:
|
Removal of shed |
$300 |
|
Filling and grading |
|
|
Salvage value of lumber of shed |
120 |
|
Broker commission |
1,130 |
|
Paving of parking lot |
10,000 |
|
Closing costs |
560 |
Hull will record the acquisition cost of the land as
|
$89,610. |
|
$86,000. |
|
$89,370. |
|
$87,690. |
Engler Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of the company is painted on the side of the truck for $1,200. The truck license is $120. The truck undergoes safety testing for $220. What does Engler record as the cost of the new truck?
|
$48,000 |
|
$49,540 |
|
$47,420 |
|
$49,420 |
|
Multiple Choice, Question 76 |
The balance in the Accumulated Depreciation account represents the
|
amount to be deducted from the cost of the plant asset to arrive at its fair market value. |
|
amount charged to expense in the current period. |
|
amount charged to expense since the acquisition of the plant asset. |
|
cash fund to be used to replace plant assets. |
|
Multiple Choice, Question 217 |
All of the following are intangible assets
except
|
goodwill. |
|
research and development costs. |
|
patents. |
|
copyrights. |
|
Multiple Choice, Question 218 |
A purchased patent has a legal life of 20 years. It should be
|
amortized over 20 years regardless of its useful life. |
not amortized.
|
expensed in the year of acquisition. |
|
amortized over its useful life if less than 20 years. |
The asset turnover ratio is computed by dividing
|
net sales by ending total assets. |
|
net income by average total assets. |
|
net sales by average total assets. |
|
net income by ending total assets. |
|
Multiple Choice, Question 42 |
A current liability is a debt that can reasonably be expected to be paid
|
within one year. |
|
out of currently recognized revenues. |
|
out of cash currently on hand. |
|
between 6 months and 18 months. |
From a liquidity standpoint, it is more desirable for a company to have current
|
liabilities exceed current assets. |
|
assets exceed current liabilities. |
|
liabilities exceed long-term liabilities. |
|
assets equal current liabilities. |
Admire County Bank agrees to lend Givens Brick Company $200,000 on January 1. Givens Brick Company signs a $200,000, 8%, 9-month note. The entry made by Givens Brick Company on January 1 to record the proceeds and issuance of the note is
| Interest Expense12,000 Cash188,000 Notes Payable 200,000 |
| Cash200,000 Interest Expense12,000 Notes Payable 200,000Interest Payable 12,000 |
| Cash200,000 Notes Payable 200,000 |
| Cash200,000 Interest Expense12,000 Notes Payable 212,000 |
|
Multiple Choice, Question 54 |
Admire County Bank agrees to lend Givens Brick Company $200,000 on January 1. Givens Brick Company signs a $200,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
| Interest Expense12,000 Notes Payable200,000 Cash 212,000 |
| Notes Payable200,000 Interest Payable12,000 Cash 212,000 |
| Notes Payable212,000 Cash 212,000 |
| Interest Payable8,000 Notes Payable200,000 Interest Expense4,000 Cash 212,000 |
|
Multiple Choice, Question 67 |
The interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day note would be
|
$1,500. |
|
$3,333. |
|
$6,000. |
|
Multiple Choice, Question 86 |
The current portion of long-term debt should
|
not be separated from the long-term portion of debt. |
|
be paid immediately. |
|
be classified as a long-term liability. |
|
be reclassified as a current liability. |
Which one of the following payroll taxes does
not result in a payroll tax expense for the employer?
|
FICA tax |
|
Federal income tax |
|
State unemployment tax |
|
Federal unemployment tax |
|
Multiple Choice, Question 38 |
(n)
|
limited liability company. |
|
“S” corporation. |
|
limited liability partnership. |
|
sub-chapter “S” corporation. |
|
Multiple Choice, Question 40 |
A general partner in a partnership
|
is the partner who lacks a specialization. |
|
has unlimited liability for all partnership debts. |
|
is always the general manager of the firm. |
|
is liable for partnership liabilities only to the extent of that partner’s capital equity. |
|
Multiple Choice, Question 41 |
The individual assets invested by a partner in a partnership
|
revert back to that partner if the partnership liquidates. |
|
determine the scope of authority of that partner. |
|
are jointly owned by all partners. |
|
determine that partner’s share of net income or loss for the year. |
|
Multiple Choice, Question 48 |
In a partnership, mutual agency means
|
an act by a partner is judged as binding on other partners depending on whether the act appears to be appropriate for the partnership. |
|
that partners must pay taxes on a mutual or combined basis. |
|
each partner acts on his own behalf when engaging in partnership business. |
|
the act of any partner is binding on all other partners, only if partners act within their scope of authority. |
|
Multiple Choice, Question 50 |
The partner in a limited partnership that has unlimited liability is referred to as the
|
unlimited partner. |
|
lead partner. |
|
head partner. |
|
general partner. |
|
Multiple Choice, Question 51 |
Limited partnerships
|
must have at least one general partner. |
|
guarantee that a partner will get back his original investment. |
|
are limited to only three partners. |
|
guarantee that a partner will receive a return. |
|
Multiple Choice, Question 52 |
The Polen-James partnership is terminated when creditor claims exceed partnership assets by $40,000. James is a millionaire and Polen has no personal assets. Polen’s partnership interest is 75% and James’s is 25%. Creditors
|
may not require James to use his personal assets to satisfy the $40,000 in claims. |
|
must collect their claims equally from Polen and James. |
|
may collect the entire $40,000 from James. |
|
must collect their claims 75% from Polen and 25% from James. |
|
Multiple Choice, Question 123 |
Eberle and Lankton are partners who share income and losses in the ratio of 3:2, respectively. On August 31, their capital balances were: Eberle, $175,000 and Lankton,
$150,000.
On that date, they agree to admit Newman as a partner with a one-third capital interest. If Newman invests $125,000 in the partnership, what is Eberle’s capital balance after Newman’s admittance?
|
$175,000. |
|
$160,000. |
|
$158,333. |
