Solved by verified expert :ACCT300 week 4 quizQuestion 1 of 20The accounting term depreciation measures: A.the decline in an asset’s market value. B.the amount of cash a company sets aside for asset replacement. C.the amount of asset cost allocated to expense over periods benefited. D.the anticipated loss if asset is sold in the used-asset market.Question 2 of 20Which of the following expenditures would not be included in the cost of a fixed asset? A.Freight costs B.Vandalism C.Sales taxes D.Surveying feesQuestion 3 of 20The estimated amount that an asset can be sold for at the end of its useful life is called its book value.A. True B. FalseQuestion 4 of 20If a company sells a fixed asset for an amount which is less than its book value, a gain must be recognized.A. True B. FalseQuestion 5 of 20The reduction in the par or stated value of common stock, accompanied by the issuance of a proportionate number of additional shares, is called a stock split.A. True B. FalseQuestion 6 of 20Which of the following is a characteristic of fixed assets? A.Fixed assets are offered for sale as part of normal operations. B.Fixed assets do not exist physically. C.Fixed assets are long-term or relatively permanent assets. D.Fixed assets that are no longer used in operations are still classified as fixed assets.Question 7 of 20A bond is simply a form of an interest-bearing note.A. True B. FalseQuestion 8 of 20The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:A.depletion. B.deferral. C.amortization. D.depreciation.Question 9 of 20The balance in Accumulated Depreciation account is deducted from the cost of fixed assets on the balance sheet.A. True B. FalseQuestion 10 of 20The main source of paid-in capital is from issuing stock.A. True B. FalseQuestion 11 of 20What is the effect of a stock dividend on the balance sheet? A.Decrease total assets and decrease total stockholders’ equity B.Decrease total assets and increase total stockholders’ equity C.Increase total liabilities and decrease total stockholders’ equity D.No effect on total assets, total liabilities, or total stockholders’ equityQuestion 12 of 20What is the effect of a stock dividend on the balance sheet? A.Decrease total assets and decrease total stockholders’ equity B.Decrease total assets and increase total stockholders’ equity C.Increase total liabilities and decrease total stockholders’ equity D.No effect on total assets, total liabilities, or total stockholders’ equityQuestion 13 of 20The balance in Accumulated Depreciation account is deducted from the cost of fixed assets on the balance sheet.A. True B. FalseQuestion 14 of 20What are current liabilities? A.Liabilities that are due and payable within two years. B.Liabilities that are due and to be paid out of the current assets within one year. C.Liabilities that are due but not payable for more than one year. D.Liabilities that are payable if a possible subsequent event occurs.Question 15 of 20The reduction in the par or stated value of common stock, accompanied by the issuance of a proportionate number of additional shares, is called a stock split.A. True B. FalseQuestion 16 of 20The total earnings of an employee for a payroll period is referred to as the net pay.A. True B. FalseQuestion 17 of 20The exclusive right to use a certain name or symbol is called a: A.franchise. B.patent. C.trademark. D.copyright.Question 18 of 20For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share? A.$5.00 B.$2.50 C.$6.00 D.$3.00 Question 19 of 20A current liability is a debt that is reasonable expected to be paid: A.between 6 months and 18 months. B.out of currently recognized revenues. C.within one year. D.out of cash currently on hand. Question 20 of 20Fixed assets are reported at their book value on the balance sheet.A. True B. False
