Arithmetic Math Quiz Questions

25 Questions

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Arithmetic Quizzes & Trivia

Take this arithmetic maths quiz and learn about addition & subtraction, multiplication & division!


Questions and Answers
  • 1. 
    Which ratio would a manager monitor to determine the effectiveness of collections from credit customers?
    • A. 

      Accounts Receivable Turnover

    • B. 

      the issuing company has the right to retire the bonds.

    • C. 

      The dividends are paid on preferred stock before they are paid on common stock

    • D. 

      Corporation A is the parent and Corporation B is the subsidiary.

  • 2. 
    When Corporation A owns more than 50% of the common stock of Corporation B
    • A. 

      Corporation A is the parent and Corporation B is the subsidiary.

    • B. 

      Accounts Receivable Turnover

    • C. 

      the issuing company has the right to retire the bonds.

    • D. 

      an arbitrary amount that exists to fulfill legal requirements.

  • 3. 
    Which of the following statements is true with respect to long-term liabilities?
    • A. 

      the issuing company has the right to retire the bonds.

    • B. 

      Long-term liabilities include bonds, post-retirement benefits, and deferred income taxes.

    • C. 

      Corporation A is the parent and Corporation B is the subsidiary.

    • D. 

      Accounts Receivable Turnover

  • 4. 
    If a company's bonds are callable,
    • A. 

      Corporation A is the parent and Corporation B is the subsidiary.

    • B. 

      Accounts Receivable Turnover

    • C. 

      Long-term liabilities include bonds, post-retirement benefits, and deferred income taxes.

    • D. 

      the issuing company has the right to retire the bonds.

  • 5. 
    With regard to a corporation's stock, par value is
    • A. 

      an arbitrary amount that exists to fulfill legal requirements.

    • B. 

      Accounts Receivable Turnover

    • C. 

      Earnings that have not been distributed to shareholders

    • D. 

      The dividends are paid on preferred stock before they are paid on common stock

  • 6. 
    The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents
    • A. 

      Corporation A is the parent and Corporation B is the subsidiary.

    • B. 

      Accounts Receivable Turnover

    • C. 

      Earnings that have not been distributed to shareholders

    • D. 

      The dividends are paid on preferred stock before they are paid on common stock

  • 7. 
    Stockholders prefer to invest in preferred stock because
    • A. 

      The dividends are paid on preferred stock before they are paid on common stock

    • B. 

      Long-term liabilities include bonds, post-retirement benefits, and deferred income taxes.

    • C. 

      Accounts Receivable Turnover

    • D. 

      Corporation A is the parent and Corporation B is the subsidiary.

  • 8. 
    Vegas Company issued 5,000 shares of $1 par common stock for $30 per share, providing the company with $150,000 in cash. What effect, in addition to the increase in cash, does this transaction have on the accounting equation for Vegas?
    • A. 

      Accounts Receivable Turnover

    • B. 

      an arbitrary amount that exists to fulfill legal requirements.

    • C. 

      Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000.

    • D. 

      it wishes to increase the amount of outstanding stock

  • 9. 
    A company would repurchase its own stock for all of the following reasons except
    • A. 

      Accounts Receivable Turnover

    • B. 

      it wishes to increase the amount of outstanding stock

    • C. 

      The cost of the treasury stock reduces stockholders' equity

    • D. 

      Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000.

  • 10. 
    When a company purchases treasury stock, which of the following statements is true?
    • A. 

      The cost of the treasury stock reduces stockholders' equity

    • B. 

      it wishes to increase the amount of outstanding stock

    • C. 

      Accounts Receivable Turnover

    • D. 

      Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000.

  • 11. 
    When a company declares a cash dividend (the date of declaration), which of the following is true?
    • A. 

      Liabilities are increased.

    • B. 

      Accounts Receivable Turnover

    • C. 

      The dividends are paid on preferred stock before they are paid on common stock

    • D. 

      Earnings that have not been distributed to shareholders

  • 12. 
    What is the effect of a stock dividend on stockholders' equity?
    • A. 

      Earnings that have not been distributed to shareholders

    • B. 

      Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000.

    • C. 

      Total stockholders' equity stays the same.

    • D. 

      Accounts Receivable Turnover

  • 13. 
    When a company declares a 3-for-1 stock split, the number of outstanding shares
    • A. 

      an arbitrary amount that exists to fulfill legal requirements.

    • B. 

      Is tripled compared to the number of shares that were outstanding prior to the split.

    • C. 

      Accounts Receivable Turnover

    • D. 

      it wishes to increase the amount of outstanding stock

  • 14. 
    Aruba Company began business on January 1, 2006. The corporate charter authorized issuance of 500 shares of $1 par value common stock and 400 shares of $4 par value, 3% cumulative preferred stock. What is the maximum amount that can be reported on the balance sheet for Common Stock, and Preferred Stock, respectively, if all of the stock is issued?
    • A. 

      Common Stock increases $5,000; Additional Paid-in Capital - Common increases $145,000.

    • B. 

      $500 $1,600

    • C. 

      an arbitrary amount that exists to fulfill legal requirements.

    • D. 

      Accounts Receivable Turnover

  • 15. 
    Which of the following should be considered when a company decides to declare a cash dividend on common stock?
    • A. 

      The cash available and the retained earnings balance

    • B. 

      Accounts Receivable Turnover

    • C. 

      an arbitrary amount that exists to fulfill legal requirements.

    • D. 

      it wishes to increase the amount of outstanding stock

  • 16. 
    Readers of the financial pages of the daily newspaper noticed the following information with regard to the XYZ Company stock: Daily high, 45 1/2; Daily low, 42 1/4; Last, 43 1/2; Change, +3/4. This tells readers that the
    • A. 

      Stock gained $.75 in value over the previous day.

    • B. 

      The cash available and the retained earnings balance

    • C. 

      Liabilities are increased.

    • D. 

      Is tripled compared to the number of shares that were outstanding prior to the split.

  • 17. 
    What is the purpose of the statement of Cash Flows?
    • A. 

      To summarize the cash inflows and cash outflows of a company over a period of time.

    • B. 

      A contra-liability account.

    • C. 

      The bond would be issued at a premium

    • D. 

      which are not backed by specific collateral

  • 18. 
    The first line on the company’s statement of cash flow is net income.  Which method does the company use to prepare its statement of cash flow?
    • A. 

      The bond would be issued at a premium

    • B. 

      If dividends were not paid to preferred stockholders in previous years, these dividends must be paid before any dividends are paid to the common stockholders.

    • C. 

      The lessee records the leased asset on its balance sheet

    • D. 

      Indirect Method.

  • 19. 
    What does it mean when preferred stock has a cumulative feature?
    • A. 

      which are not backed by specific collateral

    • B. 

      The bond would be issued at a premium

    • C. 

      If dividends were not paid to preferred stockholders in previous years, these dividends must be paid before any dividends are paid to the common stockholders.

    • D. 

      A contra-liability account.

  • 20. 
    Which of these statements is true regarding a capital lease?
    • A. 

      To summarize the cash inflows and cash outflows of a company over a period of time.

    • B. 

      The lessee records the leased asset on its balance sheet

    • C. 

      which are not backed by specific collateral

    • D. 

      International Financial Reporting Standards require less disclosure notes with the financial statements.

  • 21. 
    Bonds in the amount of $50,000 and a life of 5 years were issued by the Whitley Company.  If the face rate is 5% and interest is paid annually, what would be the total amount of interest paid over the life of the bonds?
    • A. 

      Indirect Method.

    • B. 

      $12,500

    • C. 

      The bond would be issued at a premium

    • D. 

      which are not backed by specific collateral

  • 22. 
    If ABC Corporation issues a five-year $100,000 bond at 6% when the market rate of interest is 5%,
    • A. 

      which are not backed by specific collateral

    • B. 

      The bond would be issued at a premium

    • C. 

      International Financial Reporting Standards require less disclosure notes with the financial statements.

    • D. 

      A contra-liability account.

  • 23. 
    The account Discount on Bonds Payable should be considered to be
    • A. 

      A contra-liability account.

    • B. 

      which are not backed by specific collateral

    • C. 

      The bond would be issued at a premium

    • D. 

      International Financial Reporting Standards require less disclosure notes with the financial statements.

  • 24. 
    Debenture bonds are bonds
    • A. 

      which are not backed by specific collateral

    • B. 

      Indirect Method.

    • C. 

      The lessee records the leased asset on its balance sheet

    • D. 

      The bond would be issued at a premium

  • 25. 
    Which of the following is NOT a benefit that will be provided by a single set of worldwide accounting standards (IFRS)?
    • A. 

      International Financial Reporting Standards require less disclosure notes with the financial statements.

    • B. 

      Stock gained $.75 in value over the previous day.

    • C. 

      To summarize the cash inflows and cash outflows of a company over a period of time.

    • D. 

      If dividends were not paid to preferred stockholders in previous years, these dividends must be paid before any dividends are paid to the common stockholders.