ACCT 212 CheckPoints Week 5 Quiz: DeVry university( 100% CORRECT)

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ACCT 212 CheckPoints Week 5 Quiz: DeVry university( 100% CORRECT) 1. (TCO 6) Which of the following is a natural resource? (Points : 3) Patents Timber Gas reserves ... both B and C Question 2. 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 (Points : 3) amortization. allocation. depreciation. disclosure. Question 3. 3. (TCO 6) The portion of the cost of natural resources that is consumed in a particular period is called (Points : 3) depreciation expense. amortization expense. depletion expense. resource expense. Question 4. 4. (TCO 6) An investor who owns 25% of the outstanding stock of another company should report the investment using the (Points : 3) market value method. consolidated method. equity method. historical cost method. Question 5. 5. (TCO 6) The future value of 1 will always be (Points : 3) equal to 1. greater than 1. less than 1. equal to the interest rate. Question 6. 6. (TCO 6) All of the following are reported as current liabilities except (Points : 3) bonds payable. sales tax payable. accounts payable. unearned revenues. Question 7. 7. (TCO 6) The current ratio is current assets (Points : 3) minus current liabilities. divided by current liabilities. plus current liabilities. multiplied by current liabilities. Question 8. 8. (TCO 6) If bonds are issued at a discount, it means that the (Points : 3) market interest rate is higher than the stated interest rate. market interest rate is lower than the stated interest rate. financial strength of the issuer is weak. bond is convertible. Question 9. 9. (TCO 6) Bonds which are backed only by the good faith of the borrower are referred to as (Points : 3) junk bonds. unregistered bonds. debenture bonds. callable bonds. Question 10. 10. (TCO 6) The financing option that has the lowest risk to a company is financing by (Points : 3) retained earnings. issuing stock. issuing bonds payable. issuing notes payable. [Show More]

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