Saint Leo MBA 560 mcq 4

Question # 00003569 Posted By: neil2103 Updated on: 11/15/2013 09:16 AM Due on: 11/27/2013
Subject Finance Topic Finance Tutorials:
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Question 1.1.A current asset is a(n): (Points : 2)

Question 2.2.How does the amortization of the principal balance affect the amount of interest expense recorded each succeeding year? (Points : 2)

Question 3.3.Long-term debt would likely be used for which of the following? (Points : 2)

Question 4.4.Which of the following would notbe classified as a current asset? (Points : 2)

Question 5.5.Which of the following items would be least likely to appear in the current liabilities section of a classified balance sheet? (Points : 2)

Question 6.6.On January 1, 2010, Hays Corporation arranged a $3,000 line of credit with the Barnett Bank. It agreed to accept the bank's offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and payments on principal are to take place on January 1 of each year. Hays began its loan transactions with Barnett Bank by borrowing $1,000 on January 1, 2010. Which of the following answers shows the effect of this event on the financial statements?

RowAssets=Liabilities+EquityRevenue-Expenses=Net Inc.Cash
One1000=1000+NANA-NA=NA1000 IA
Two1000=NA+10001000-NA=10001000 IA
Three1000=1000+NANA-NA=NA1000 OA
Four1000=1000+NANA-NA=NA1000 FA
(Points : 2)

Question 7.7.Borrowing by issuing a note payable is a(n): (Points : 2)

Question 8.8.Liquidity refers to a company’s ability to: (Points : 2)

Question 9.9.The Halogen Corporation issued a 5-year note payable on January 1, 2010 for $2,500. The interest rate is 5% and the annual payment of $578, due each December 31, includes both interest and principal. Which of the following correctly shows the effects of the December 31, 2011, payment?

RowAssets=Liabilities+EquityRevenue-Expenses=Net Inc.Cash
(Points : 2)

Question 10.10.A contingent liability is: (Points : 2)

Question 11.11.Reissuance of treasury stock for cash is what kind of transaction? (Points : 2)

Question 12.12.Mitchell Company was authorized to issue 50,000 shares of common stock. The company issued 27,000 shares of stock and later purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock is: (Points : 2)

Question 13.13.Which of the following terms designates the number of shares of a corporation’s stock currently held by stockholders? (Points : 2)

Question 14.14.Which form of business organization is established as a separate legal entity from its owners? (Points : 2)

Question 15.15.Which of the following terms designates the maximum number of shares a corporation may issue? (Points : 2)

Question 16.16.Purchase of treasury stock would be shown on the statement of cash flows as: (Points : 2)

Question 17.17.Flynn Company issued 2,000 shares of $10 par value common stock at a market price of $16. As a result of this accounting event, total paid-in capital would: (Points : 2)

Question 18.18.The issuance of a stock dividend will: (Points : 2)

Question 19.19.Grant Corporation declared a 2-for-1 stock split when it had 12,000 shares of $5 par value common stock outstanding. If the market price of the stock had been $20 a share before the split, the par value, number of shares, and approximate market value after the split would be:

RowPar ValueNo. of SharesMarket Value
Two$2.5024,000$ 5.00
(Points : 2)

Question 20.20.What kind of transaction is the declaration of a stock dividend? (Points : 2)

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  1. Tutorial # 00003380 Posted By: mac123 Posted on: 11/15/2013 09:54 AM
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