ACCT212 Week 5 Quiz Latest 2017 November (all correct answers)

Question 1

3 / 3 pts

(TCO 6) Which of the following is a natural resource?

Patents

Timber

Gas reserves

both B and C

Question 2

3 / 3 pts

(TCO 6) Depreciation expense

allocates a portion of the cost of an asset against the revenue the asset helps earn each period.

is not required for plant assets according to GAAP.

is reported on the balance sheet.

is required for land according to GAAP.

Question 3

3 / 3 pts

(TCO 6) The portion of the cost of natural resources that is consumed in a particular period is called

depreciation expense.

amortization expense.

depletion expense.

resource expense.

Question 4

3 / 3 pts

(TCO 6) When an investor owns between 20% and 50% of the outstanding stock of another company, the _____ method is used to account for stock investments.

market value

equity

consolidated

historical cost.

Question 5

3 / 3 pts

(TCO 6) Which of the following is not necessary to know in computing the future value of an annuity?

Amount of the initial payment

Interest rate

Length of time between investment and payment

Year the payments begin

Question 6

3 / 3 pts

(TCO 6) All of the following are reported as current liabilities except

bonds payable.

sales tax payable.

accounts payable.

unearned revenues.

Question 7

3 / 3 pts

(TCO 6) Failure to record an accrued liability causes a company to

overstate income.

overstate assets.

understate liabilities.

understate owners' equity.

Question 8

3 / 3 pts

(TCO 6) If bonds are issued at a discount, it means that the

market interest rate is higher than the stated interest rate.

market interest rate is lower than the stated interest rate.

financial strength of the issuer is weak.

bond is convertible.

Question 9

3 / 3 pts

(TCO 6) Bonds that mature at a single specified future date are called

term bonds.

coupon bonds.

serial bonds.

debentures.

Question 10

3 / 3 pts

(TCO 6) The financing option that creates no liabilities or interest expense is financing by

issuing notes payable.

debt.

issuing stock.

issuing bonds payable