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Devry ACCT 212 Week 5 Quiz

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Devry ACCT 212 Week 5 Quiz

Question 1. (TCO 6) An example of an intangible asset is

  • land.
  • equipment.
  • coal mine.
  • goodwill.

Question 2. (TCO 6) The process of allocating the cost of a plant asset to expense over the period in which the asset is used is called

  • amortization.
  • allocation.
  • depreciation.
  • disclosure.

Question 3. (TCO 6) All of the following are classified as natural resources and are depleted except for

  • land.
  • timber.
  • minerals.
  • oil.

Question 4. (TCO 6) The method used to account for investments in which the investor has 35% of the investee’s voting stock and can significantly influence the decisions of the investee is the

  • market value method.
  • consolidated method.
  • equity method.
  • historical cost method.

Question 5. (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

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Question 6. (TCO 6) A current liability is a debt that can reasonably be expected to be paid

  • within 1 year or the company’s normal operating cycle (if it is longer than 1 year).
  • between 6 months and 18 months.
  • out of cash on hand.
  • out of current revenues.

Question 7. (TCO 6) The current ratio is current assets

  • minus current liabilities.
  • divided by current liabilities.
  • plus current liabilities.
  • multiplied by current liabilities.

Question 8. (TCO 6) If the market interest rate is greater than the stated interest rate, bonds will sell

  • at face value.
  • at a discount.
  • at a premium.
  • at market value.

Question 9. (TCO 6) Bonds that are secured by real estate are called

  • term bonds.
  • serial bonds.
  • mortgage bonds.
  • debentures.

Question 10. (TCO 6) The financing option that has the lowest risk to a company is financing by

  • retained earnings.
  • issuing stock.
  • issuing bonds payable.
  • issuing notes payable.