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
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.
