Chapter 17
Chapter 18
Chapter 19
Chapter 20
Hodge Podge
100
The average cost method calculation.
What is Total cost of merchandise available for sale divided by total number of units?
100
The two accounts used to record depreciation.
What are depreciation expense and accumulated depreciation?
100
True or False - The journal entry to record the division of a partnership profit consists of a debit to each partner's capital account and a credit to Cash.
False - debit Income Summary, credit Partner, Capital
100
T/F Before dividends can be paid, they must be declared and voted upon by the shareholders.
False - by the board of directors
100
Net Sales minus Gross Profit equals ___________________.
What is Cost of Goods Sold?
200
Describe how FIFO is calculated.
What is Inventory costing method that matches earliest costs to cost of goods sold ?
200
How is straight-line depreciation calculated?
What is Cost - salvage/number of years
200
True or False - It is customary for a partnership's income statement to show how the net income or loss for the year has been divided between the partners.
True
200
Stock that carries special privileges or rights is called ____________________ stock.
What is Preferred stock?
200
T/F The sale of a depreciable asset for an amount less than its cost always requires the recognition of a loss in the financial records of the company.
False
300
T/F The LIFO method of inventory valuation assigns the cost of the most recent purchases to the ending inventory.
False - assigned to Cost of Goods Sold
300
The calculation to determine the denominator for sum-of-the-years inventory costing.
What is each year totaled together (1 +2 + 3 + 4 +5 = 15)?
300
True or False - A gain or loss on revaluation of assets should be allocated to the partners according to the balances of their capital accounts.
False - Assets are appraised and recorded at the agreed-upon fair market value at the transfer date.
300
If the issuing corporation retains the right to repurchase the shares of preferred stock from the stockholders at a specified price, the preferred stock is ___________________.
What is callable stock?
300
T/F For financial accounting purposes, when an asset is traded in for a similar asset, a gain is reported if the trade-in allowance exceeds the book value of the asset traded in.
False
400
The price the business would have to pay to buy an item of inventory through usual channels in usual quantities is either market price or __________________ cost.
What is replacement cost?
400
The formula to calculate a gain or loss on a sale.
What is proceeds minus book value?
400
If plant and equipment are transferred from a sole proprietorship to a partnership, the Accumulated Depreciation accounts start with ____________________ balances in the partnership records.
Zero, no balance - expense incurred by former company
400
A corporation received a subscription for 1,000 shares of 10 percent, $100 par-value preferred stock at $103 a share. The entry to record this transaction consists of a debit to Subscriptions Receivable—Preferred for $103,000 and a credit to  A. Preferred Stock for $100,000 and a credit to Retained Earnings for $3,000. B. Preferred Stock Subscribed for $100,300. C. Preferred Stock Subscribed for $100,000 and a credit to Paid-in Capital in Excess of Par Value—Preferred Stock for $3,000. D. Preferred Stock Subscribed for $100,000 and a credit to Gain on Sale of Preferred Stock for $3,000.
What is C
400
The Common Stock Subscribed account has a(n) ____________________ balance.
What is credit balance?
500
The methods to estimate the value of ending inventory?
What are Gross profit method and retail method?
500
The capitalized cost of acquiring an asset.
What are gross purchase price less discounts, transportation cost, installation cost, and cost of adjustments/modification to prepare for use?
500
41. Which of the following statements is correct? A. If partners consider their cash withdrawals to be compensation for the work they do for the partnership, the amounts of the withdrawals should be charged to Salaries Expense. B. If there is no specific agreement on the division of partnership profits and losses, they are divided equally among the partners. C. If a salary is allowed to one partner, other partners also must receive a salary allowance. D. None of the above statements is correct.
B
500
All of the following are included on the statement of partners' equities except A. withdrawals. B. additional investments. C. salary allowances. D. share of net income or net loss.
What is C?
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