ACC 302 Exam 1

ACC 302 Exam 1 - Question 1 1 out of 1 points Glaus Corp....

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Question 1 1 out of 1 points Glaus Corp. signed a three- month, zero- interest-bearing note on November 1, 2010 for the purchase of $150,000 of inventory. The face value of the note was $152,205. Assuming Glaus used a “Discount on Note Payable” account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2010 will include a Answer Selected Answer: debit to Interest Expense for $1,470. Correct Answer: debit to Interest Expense for $1,470. Response Feedback: $152,205 – $150,000 = $2,205. $2,205 × 2/3 = $1,470. Question 2 1 out of 1 points The numerator of the acid-test ratio consists of Answer
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Selected Answer: cash, marketable securities, and net receivables. Correct Answer: cash, marketable securities, and net receivables. Question 3 1 out of 1 points Which of the following statements is false? Answer Selected Answer: FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority. Correct Answer: FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority. Question 4 1 out of 1 points Treasury bonds should be shown on the balance sheet as Answer Selected Answer: a deduction from bonds payable issued to arrive at net bonds payable and outstanding. Correct Answer: a deduction from bonds payable issued to arrive at net bonds payable and outstanding. Question 5
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This note was uploaded on 11/08/2011 for the course ACC ACC 302 taught by Professor Scala during the Spring '09 term at St. Leo.

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ACC 302 Exam 1 - Question 1 1 out of 1 points Glaus Corp....

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