Arithmetic Math Quiz Questions
Take this arithmetic maths quiz and learn about addition & subtraction, multiplication & division!
- 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.
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