Câu hỏi _ liabilities may arise from past transactions if certain events occur in the future Select one: a Current b Long-term c Noncurrent d Contingent Câu hỏi A company sold 200 shares of common stock with a par value of $5 at a price of $12 per share Which section of the statement of cash flows will contain this transaction? Select one: a Investing activities b Operating activities c Sale of stock will not appear on the statement of cash flows d Financing activities Câu hỏi 39 Contingent liabilities that are probable but cannot be reasonably estimated are disclosed in the _ Select one: a current liabilities section of the balance sheet b retained earnings section of the statement of stockholders' equity c long term-liabilities section of the balance sheet d notes to the financial statements Câu hỏi Current liabilities are _ Select one: a due and payable within one year b due but not receivable for more than one year c due but not payable for more than one year d due and receivable within one year Câu hỏi Emerald Co has 50,000 shares at $12 par common stock outstanding If the company decides to buy 20% of its shares for $15 per share, the total stockholders' equity will _ Select one: a increase by $750,000 b decrease by $150,000 c decrease by $120,000 d increase by $600,000 Câu hỏi Glow Co reacquired 60,000 shares of its common stock at $25 per share The balance of the treasury stock account is reported on the balance sheet as a(n) _ Select one: a increase in long-term liabilities b reduction of fixed assets c increase in current liabilities d reduction of stockholders' equity Câu hỏi Liabilities due beyond one year are classified as _ Select one: a contingent liabilities b long-term liabilities c fixed liabilities d current liabilities Câu hỏi The cost of a product warranty should be included as an expense in the _ Select one: a period the cash is collected for a product sold on account b future period when the product is repaired or replaced c future period when the cost of repairing the product is paid d period of the sale of the product Câu hỏi The major subdivisions of the stockholders' equity section of the balance sheet are _ Select one: a Issued capital and authorized capital b Common stock and preferred stock c Expenses and incomes d Paid-in capital and retained earnings Câu hỏi 10 Treasury stock is reported in the _ section of the balance sheet Select one: a contingent liabilities b stockholders' equity c investment d current liabilities Câu hỏi 11 Where is interest expense listed on the income statement? Select one: a Other expense section b Operating expenses c Interest expense is listed on the balance sheet, not the income statement d Cost of merchandise sold Câu hỏi 12 Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet? Select one: a Cash b Bonds payable c Common stock d Dividends payable Câu hỏi 13 Which of the following factors affects the accounting for contingent liabilities? Select one: a The likelihood of occurring and measurement b Financial and economic conditions c The coupon rate and market rate of interest d Investor's expectations Câu hỏi 14 Which of the following is a reason for a corporation to buy back its own stock? Select one: a To increase liquidity b To increase solvency c To increase the shares outstanding d To reissue as bonuses to employees Câu hỏi 15 Which of the following transactions decreases the profitability of a company? Select one: a Issuing a note payable b Declaring cash dividend c Recording payroll tax expense d Purchasing treasury stock Câu hỏi 16 Which of the following will be classified as a current liability? Select one: a Bonds payable b Unearned rent c Mortgage loan d Two-year notes payable Câu hỏi 17 Bonds payable due in the following year are reported on the balance sheet as long-term liabilities Select one: True False Câu hỏi 18 During the first year of operations, a company granted warranties on its products The estimated cost of the product warranty liability at the end of the year is $12,750 The product warranty expense of $12,750 should be recorded in the year the related product sale is made Select one: True False Câu hỏi 19 During the first year of operations, employees earned vacation pay of $50,000 The vacations will be taken during the second year The vacation pay expense should be recorded in the first year of operations Select one: True False Câu hỏi 20 Earnings per common share are one factor that influence the decision to use debt financing or equity financing Select one: True False Previous page Câu hỏi 21 For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits Select one: True False Câu hỏi 22 In order to record a contingent liability, the liability must be probable and reasonably estimated Select one: True False Câu hỏi 23 Liabilities that are due and payable beyond one year or paid out of noncurrent assets are termed long-term liabilities Select one: True False Câu hỏi 24 Obligations that depend on future events and are based on past transactions are contingent liabilities Select one: True False Câu hỏi 25 The issuance of common stock affects both paid-in capital and retained earnings Select one: True False Câu hỏi 26 The main source of paid-in capital is from issuing stock Select one: True False Câu hỏi 27 The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business Select one: True False Câu hỏi 28 Treasury stock is a contra-equity account Select one: True False Câu hỏi 29 Which of the following items should not appear in the Long-Term Liability section of the balance sheet? Select one: a Pension obligations b Accrued income taxes c Bonds payable d Capital lease with a ten-year term Câu hỏi 30 A current liability is a debt that is reasonably expected to be paid Select one: a out of cash currently on hand b between months and 18 months c within one year d out of currently recognized revenues Câu hỏi 31 A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed Select one: a unfunded b defined contribution c funded d defined benefit Câu hỏi 32 Blast sells portable CD players and each unit carries a one-year replacement warranty The cost of repair defects under the warranty is estimated at 10% of the sales price During May, Blast sells 650 portable CD players for $50 each For what amount in May would Blast debit Product Warranty Expense? Select one: a $1,300 b $650 c $3,250 d $1,625 Câu hỏi 33 Zennia Company provides its employees with varying amounts of vacation per year, depending on the length of employment The estimated amount of the current year’s vacation cost is $135,000 On December 31, the end of the current year, the current month’s accrued vacation pay is Select one: a $135,000 b $0 c $11,250 d $67,500 Câu hỏi 34 Wright Company sells merchandise with a one-year warranty This year, sales consisted of 2,000 units It is estimated that warranty repairs will average $15 per unit sold, and 30% of the repairs will be made this year and 70% next year In this year's income statement, Wright should show warranty expense of Select one: a $0 b $30,000 c $21,000 d $9,000 Câu hỏi 35 Amounts withheld from each employee for social security and Medicare vary by state Select one: True False Câu hỏi 36 During the first year of operations, a company granted warranties on its products at an estimated cost of $8,500 The product warranty expense should be recorded in the years of the expenditures to repair the products covered by the warranty payments Select one: True False Câu hỏi 37 During the first year of operations, employees earned vacation pay of $35,000 The vacations will be taken during the second year The vacation pay expense should be recorded in the second year as the vacations are taken by the employees Select one: True False Câu hỏi 38 Interest expense is reported in the operating expense section of the income statement Select one: True False Câu hỏi 39 Medicare taxes are paid by both the employee and the employer Select one: True False Câu hỏi 40 Receiving payment prior to delivering goods or services causes a current liability to be incurred Select one: True False ... During May, Blast sells 650 portable CD players for $50 each For what amount in May would Blast debit Product Warranty Expense? Select one: a $1,300 b $ 650 c $3, 250 d $1,6 25 Câu hỏi 33 Zennia Company... year’s vacation cost is $1 35, 000 On December 31, the end of the current year, the current month’s accrued vacation pay is Select one: a $1 35, 000 b $0 c $11, 250 d $67 ,50 0 Câu hỏi 34 Wright Company...a increase by $ 750 ,000 b decrease by $ 150 ,000 c decrease by $120,000 d increase by $600,000 Câu hỏi Glow Co reacquired 60,000 shares of its common stock at $ 25 per share The balance of