Multiple choice question based on basic financial

Assignment Help Financial Accounting

Reference no: EM13356226

Multiple choice question based on basic financial accounting.

1.Which inventory method produces the highest net income in a time of rising costs?
a. FIFO.
b.Average Cost.
c.LIFO.
d.KIFO.

2.Which of the following should be included in the cost of land?
a.construction cost of a parking lot
1.landscaping
2.real estate brokerage commission
3.lighting

3.Which of the following statements is false?
a. depreciation is a process of subjective valuation.
b. depreciation is a non-cash expense.
c. accumulated depreciation represents a growing amount of cash to be used to replace the existing asset.
d. accumulated depreciation is that portion of a plant asset\'s cost that has been recorded previously as an expense.

4.On January 10, 2007, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the depreciation for 2007, if Baldwin Corporation uses the asset 9,100 hours and uses the units-of-production method of depreciation?
a.$43,225
1.$47,017
2.$41,333
3.$38,000

5.A loss is recorded on the sale of a plant asset when the:
a.cash received exceeds the asset's book value.
1.asset's book value is less than its historical cost.
2.asset's book value is greater than the amount of cash received from the sale.
3.cash received exceeds the cash paid for the replacement asset.

6.Current liabilities are obligations due within:
1.one month or within the company's normal operating cycle if it is longer than one month.
2.one year or within the company's normal operating cycle if it is longer than one year.
3.one year or within the company's normal operating cycle if it is shorter than one year.
4.one month or within the company's normal operating cycle if it is shorter than one month.

7.The entry to record common stock issued at its par value includes a:
1.debit to the common stock account.
2.debit to retained earnings.
3.credit to the common stock account.
4.credit to retained earnings.

Reference no: EM13356226

Questions Cloud

Multiple choice question based on cash flow : multiple choice question based on cash flow statement.1.miller company purchased treasury stock with a cost of 15000

Multiple choice question based on basic accounts1a company : multiple choice question based on basic accounts.1.a company started the year with 400 of supplies. during the year the

Multiple choice question based on cash flow statement1 if a : multiple choice question based on cash flow statement.1. if a gain of 10000 is incurred in selling for cash office

Multiple choice question based on basic accounts1the two : multiple choice question based on basic accounts.1.the two types of accounting are and a.profit and nonprofit.

Multiple choice question based on basic financial : multiple choice question based on basic financial accounting.1.which inventory method produces the highest net income

Theory questions based on ratio analysis1explain the : theory questions based on ratio analysis.1.explain the difference between bank solvency and bank liquidity.2.from the

Computation of earnings per sharemajor corporation has : computation of earnings per share.major corporation has 100000 shares of 10 par value common stock outstanding and no

Multiple choice questions on inventory methods1the lifo : multiple choice questions on inventory methods1.the lifo conformity rule states that if lifo is used for a.one class of

Multiple choice questions on inventory methods1 in a : multiple choice questions on inventory methods1. in a perpetual inventory system the cost of purchases is debited to

User Account

All Pages