ACCT 302 : Intermediate Accounting! Trivia Questions Quiz

17 Questions | Total Attempts: 281

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ACCT 302 : Intermediate Accounting! Trivia Questions Quiz

This quiz is from the ACCT 302 intermediate accounting and is perfect for you to see just how ready you are for the certifying exam coming up in spring. Do you feel like you have properly revised for it or do you need some more time to revise? Take up the test and get to find out. All the best!


Questions and Answers
  • 1. 
    An example of an item which is not a liability is
    • A. 

      The portion of long-term debt due within one year

    • B. 

      Accrued estimated warranty costs

    • C. 

      Advances from customers on contracts

    • D. 

      Dividends payable in stock

  • 2. 
    If bonds are issued initially at a premium and the effective-interest method of amortization is used, interest expense in the earlier years will be
    • A. 

      Less than if the straight-line method were used

    • B. 

      Greater than the amount of interest payments

    • C. 

      Greater than if the straight-line method were used

    • D. 

      The same as if the straight-line method were used

  • 3. 
    The interest rate written in terms of the bond indenture is known as the 
    • A. 

      Nominal rate

    • B. 

      Coupon rate

    • C. 

      Stated rate

    • D. 

      Coupon rate. nominal rate of stated rate

  • 4. 
    Under the effective-interest method of bond discount of premium amortization, the periodic interest expense is equal to
    • A. 

      The stated (nominal) rate of interest multiplied by the face value of the bonds

    • B. 

      The market rate of interest multiplied by the face value of the bonds

    • C. 

      The stated rate multiplied by the beginning-of-period carrying amount of the bonds

    • D. 

      The market rate multiplied by the beginning-of-period carrying amount of the bond

  • 5. 
    Treasury bonds should be shown on the balance sheet as 
    • A. 

      An asset

    • B. 

      Both an asset and liability

    • C. 

      A deduction from bonds payable issued to arrive at net payable and outstanding

    • D. 

      A reduction of stockholder's equity

  • 6. 
    When a note payable is issued for property, goods, or services, the present value of the note is measured by
    • A. 

      Any of these

    • B. 

      Using an imputed interest rate to discount all future payments on the note

    • C. 

      The market value of the note

    • D. 

      The fair value of the property, goods, or services

  • 7. 
    Long-term debt that matures within one year and is to be converted into stock should be reported as
    • A. 

      As noncurrent

    • B. 

      As noncurrent and accompanied with a note explaining the method to be used in its liquidation

    • C. 

      In a special section between liabilities and stockholder's equity

    • D. 

      As a current liability

  • 8. 
    A troubled debt restructuring will generally result in a 
    • A. 

      Loss by both the debtor and the creditor

    • B. 

      Loss by the debtor and a gain by the creditor

    • C. 

      Gain by both the debtor and the creditor

    • D. 

      Gain by the debtor and a loss by the creditor

  • 9. 
    On January 1, 2007, Bleeker Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: The present value of 1 for eight periods at 6% .627 The present value of 1 for eight periods at 8% .540 Present value of 1 for 16 periods at 3% .623 The present value of 1 for 16 periods at 4% .534 The present value of an annuity for eight periods at 6% 6.210 The present value of an annuity for eight periods at 8% 5.747 The present value of an annuity for 16 periods at 3% 12.561 The present value of an annuity for 16 periods at 4% 11.652  
    • A. 

      623,000, 0%

    • B. 

      540,000, 0%

    • C. 

      534,000, 100%

    • D. 

      627,000, 0%

  • 10. 
          On January 1, 2007, Bleeker Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: The present value of 1 for eight periods at 6%   .627 The present value of 1 for eight periods at 8%   .540 The present value of 1 for 16 periods at 3%   .623 The present value of 1 for 16 periods at 4%   .534 The present value of an annuity for 8 periods at 6%   6.210 The present value of an annuity for 8 periods at 8%   5.747 The present value of an annuity for 16 periods at 3%   12.561 The present value of an annuity for 16 periods at 4%     11.652
    • A. 

      883.560, 100%

    • B. 

      889,560, 0%

    • C. 

      999,600, 0%

    • D. 

      884, 820 0%

  • 11. 
    The residual interest in a corporation belongs to the
    • A. 

      Management

    • B. 

      Common stockholders

    • C. 

      Creditors

    • D. 

      Preferred stockholders

  • 12. 
    A primary source of stockholders' equity is
    • A. 

      Appropriated retained earnings

    • B. 

      Contributions by stockholders

    • C. 

      Income retained by the corporation

    • D. 

      Both income retained by the corporation and contributions by stockholders

  • 13. 
    Which of the following represents the total number of shares that a corporation may issue under the terms of its charter?
    • A. 

      Issued shares

    • B. 

      Unissued shares

    • C. 

      Outstanding shares

    • D. 

      Authorized shares

  • 14. 
    “Gains" on sales of treasury stock (using the cost method) should be credited to
    • A. 

      Capital stock

    • B. 

      Other income

    • C. 

      Retained earnings

    • D. 

      Paid-in capital from treasury stock

  • 15. 
    According to the FASB, redeemable preferred stock should be
    • A. 

      Included as a contra item in stockholder's equity

    • B. 

      Excluded from the stockholder's equity heading

    • C. 

      Included as a liability

    • D. 

      Included with common stock

  • 16. 
    Farmer Corporation owns 4,000,000 shares of stock in Baha Corporation. On December 31, 2007, Farmer distributed these shares of stock as a dividend to its stockholders. This is an example of a
    • A. 

      Cash dividend

    • B. 

      Liquidating dividend

    • C. 

      Property dividend

    • D. 

      Stock dividend

  • 17. 
    The declaration and issuance of a stock dividend larger than 25% of the shares previously outstanding
    • A. 

      Increases retained earnings and increases total stockholder's equity

    • B. 

      Increases common stock outstanding and increases total stockholder's equity

    • C. 

      Decreases retained earnings but does not change the total stockholder's equity

    • D. 

      May increase or decrease paid-in capital in excess of par but does not change total stockholder's equity