# Arithmetic Math Quiz Questions

25 Questions | Total Attempts: 286

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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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