Account: Generally Accepted Accounting Principles and Long Term Liabilities

Chapter 12 1/ As part of the initial investment funds , a partner contributes office equipment that had cost $20,000 and on which accumulated disparagement of $ 12500 had been recorded . If the partners agree on a valuation of $ 9000 for the equipment , what heart and soul should be debited to the office equipment broad main tab? a/ 7500 c/ 12500 b/ 9000 d/ 20000 2/ Chip and Dale agree to form a fusion. Chip is to contribute $50000 in assets and to devote one half time to the partnership.Dale is to contribute 20000 and to devote expert time to the partnership. How will Chip and Dale sh ar in the division of acquit income or shed light on loss? a/ 52 c/ 11 b/ 12 d/ 2. 51 3/ Tracey and Hepburn invest 100,000 and 50,000 , respectively , in a partnership and agree to a division of net income that provides for an exclusively in allowance of interest at 10 % on original investments , salary allowances of 12,000 and 24000 , respectively , with the remainder divided equally .What w ould be Traceys share of a net income o 45,000? a/ 22500 c/ 19,000 b/ 22000 d/ 10000 4/ leeward and Stills are partners who share income in the ratio of 21 and who claim roof letter oddments of 65,000 and 35,000 , respectively . If Morr , with the consent of Stills, acquired one half of lees interest for 40,000 for what amount would Morrs capital letter account be credit ? a/ 32500 c/ 50,000 b/ 40000 d/ 72,500 5/ Pavin and abdel share gains and losings in the ratio of 21 .After selling all assets for property , dividing the losses on realization , and paying liabilities , the balances in the capital accounts were as follows Pavin , 10000 Cr , abdel , 2000 Cr. How many of the bullion of 12000 would be distributed to Pavin? a/ 2000 c/ 10000 b/ 8000 d/ 12000 chapter 13 1/ which of the pursuit is a disadvantage of the corporate form of organization? a/ contain liability b/ continuous life c/ owner is discontinue from oversight d/ ability to raise capital 2/ paying in capita l for a corporation may araise from which of the following sources? a/ issuing preferred stock / issuing leafy vegetable stock c/ selling the corporations treasury stock d/ all of the higher up 3/ the stockholders equity share of the balance sheet may include a/ common stock b/ stock dividends distributable c/ preferred stock d/ all of the above 4/ if a corporation reacquires its own stock , the stock is listed on the balance sheet in the a/ up-to-the-minute assets section b/ long depot liabilities section c/ stockholders equity section d/ investments section 5/ a corporation has trimd 25000, shares of 100 par common stock and holds 3000 of these shares as treasury of stock .If the corporation declares a 2 per share immediate hire dividend , what amount will be recorded as cash dividends? a/ 22000c/44000 b/ 25000d/ 50000 chapter 15 1/ If a corpo. Plans to issue 1,000,000 of 12 % bonds of a time when the market rate for similar bonds is 10 % the bonds can be expected to sel l at a/ their give amount b/ a premium a discount d/ a price below their face amount 2/ if the bonds collectible account has a balance of 900,000 and the discount on bonds collectable account has a balance of 72000 , what is the carrying amount of the bonds? / 828,000 b/ 900,000 c/ 972,000 d/ 580,000 3/ the cash and securities that make up the sinking fund established for the allowance of bonds at maturity are classified on the balance sheet as a/ watercourse assets b/ investments c/ long term liabilities d/ current liabilities 4/ if a true purchase 150,000 of bonds of x company at 101 plus accrued interests of 2000 and pays brokers commissions of 50 , the amount debited to investment in x company bonds would be a/ 150,000 b/ 151,550 c/ 153,500 d/ 153,550 / the balance in the discount on bonds payable account would usually be reported in the balance sheet in the a/ current assets section b/ current liabilities section c/ long term liabilities section d/ investments section chapter 16 1/ an ex of a cash flow from an operating activeness is a/ reception of cash from the deal of stock b/ put across of cash from the sale of bonds c/ remuneration of cash for dividends d/ receipt of cash from customers on account 2/ an ex of a cash flow from an investing application is a/ receipt of cash from the sale of equipment / receipt of cash from the sale of stock c/ payment of cash for dividends d/ payment of cash to acquire treasury stock 3/ an ex of a cash flow from a financing activity is a/ receipt of cash from customers on account b/ receipt of cash from the sale of equipment c/ payment of cash for dividends d/ payment of cash to acquire land 4/ which of the following systems of reporting cash flows from operating activities adjust net income for revenues and expenses not involving the receipt or payment of cash? a/ direct method b/ purchase method c/ reciprocal method d/ indirect method / the net income reported on the income statements for the year was 55000 and depreciation of fixed assets for the year was 22000 . The balances of the current assets and current liability accounts at the beginning and end of the year are shown at the top of the following page? / 740 Chapter 17 1/ what persona of analysis is indicated by the following ? a/ vertical analysis b/ horizontal analysis c/ profitability analysis d/ component margin analysis 2/ which of the following measures indicates the ability of a firm to pay its current liabilities ? a/ working capital b/ current ratio c/ quick ratio / all of above 3/ the ratio determined by dividing issue forth current assets by total current liabilities is a/ current ratio b/ working capital ratio c/ bankers ratio d/ all of the above 4/ the ratio of the quick assets to current liabilities , which indicates the instant debt paying ability of a firm , is the a/ current ratio b/ working capital ratio c/ quick ratio d/ bankers ratio 5/ a measure useful in evaluating efficiency in the management of inventories is the a/ working capital ratio b/ quick ratio c/ number of days sale in inventory d/ ratio of fixed assets to long term liabilities