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Test sobre FA chapter 9 quick check, creado por meli ssa el 20/02/2019.

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FA chapter 9 quick check

Pregunta 1 de 16

1

Which of the following is not an estimated liability?

Selecciona una de las siguientes respuestas posibles:

  • . Income taxes paid

  • Allowance for bad debts

  • Product warranties

  • Retirement obligations

Explicación

Pregunta 2 de 16

1

The estimated warranty obligation at the end of the financial year is best described as
which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Contingent liability

  • Unrecognized liability

  • Uncertain liability

  • Constructive liability

  • Liability

Explicación

Pregunta 3 de 16

1

Crank the Volume grants a 120-day warranty on all stereos. Historically, approximately
1% of all units sold prove to be defective, requiring an average repair bill of $100. Sales in
March are $472,500 for 4,500 units. In March, $3,900 of defective units are returned for
replacement. What entry must Crank the Volume make at the end of March to record the
warranty expense?

Selecciona una de las siguientes respuestas posibles:

  • Debit Warranty Expense and credit Provision for Warranty Repairs, $4,725

  • Debit Warranty Expense and credit Provision for Warranty Repairs, $3,900.

  • Debit Warranty Expense and credit Cash, $4,725.

  • No entry is needed at March 31.

Explicación

Pregunta 4 de 16

1

Excursion Camera Co. was organized to sell a single product that carries a 45-day warranty
against defects. Engineering estimates indicate that 4% of the units sold will prove defective and require an average repair cost of $25 per unit. During Expedition’s first month of
operations, total sales were 800 units; by the end of the month, 15 defective units had been
repaired. The liability for product warranties at month-end should be

Selecciona una de las siguientes respuestas posibles:

  • $1,175.

  • $425.

  • $375.

  • . $800.

  • none of these.

Explicación

Pregunta 5 de 16

1

A contingent liability should be recorded in the accounts

Selecciona una de las siguientes respuestas posibles:

  • . if the amount is due in cash within one year.

  • . if the amount can be reasonably estimated.

  • if the related future event will probably occur

  • Both b and c

  • Both a and c

Explicación

Pregunta 6 de 16

1

An unsecured bond is a

Selecciona una de las siguientes respuestas posibles:

  • serial bond.

  • term bond.

  • registered bond.

  • mortgage bond

  • debenture bond.

Explicación

Pregunta 7 de 16

1

. The Discount on Bonds Payable account

Selecciona una de las siguientes respuestas posibles:

  • . is expensed at the bond’s maturity

  • . is a contra account to Bonds Payable.

  • is an expense account.

  • is a miscellaneous revenue account.

  • has a normal credit balance.

Explicación

Pregunta 8 de 16

1

The discount on a bond payable becomes

Selecciona una de las siguientes respuestas posibles:

  • additional interest expense over the life of the bonds.

  • a liability in the year the bonds are sold.

  • . a reduction in interest expense over the life of the bonds.

  • additional interest expense the in year the bonds are sold

  • a reduction in interest expense in the year the bonds mature.

Explicación

Pregunta 9 de 16

1

A bond that matures in installments is called a

Selecciona una de las siguientes respuestas posibles:

  • secured bond.

  • term bond

  • . serial bond.

  • . callable bond.

  • zero coupon

Explicación

Pregunta 10 de 16

1

The carrying value of Bonds Payable equals

Selecciona una de las siguientes respuestas posibles:

  • Bonds Payable + Discount on Bonds Payable.

  • Bonds Payable - Premium on Bonds Payable.

  • Bonds Payable - Discount on Bonds Payable.

  • . Bonds Payable + Accrued Interest

Explicación

Pregunta 11 de 16

1

A corporation issues bonds that pay interest each May 1 and November 1. The corporation’s
December 31 adjusting entry may include a

Selecciona una de las siguientes respuestas posibles:

  • credit to Cash.

  • debit to Interest Payable.

  • debit to Cash.

  • credit to Discount on Bonds Payable.

  • . credit to Interest Expense.

Explicación

Pregunta 12 de 16

1

McCabe Corporation issued $560,000 of 7% 10-year bonds. The bonds are dated and sold
on January 1, 20X1. Interest payment dates are January 1 and July 1. The bonds are issued
for $521,724 to yield the market interest rate of 8%. Use the effective-interest method for
questions 12–16.

What is the amount of interest expense that McCabe Corporation will record on July 1,
20X1, the first semi-annual interest payment date? (All amounts rounded to the nearest
dollar.)

Selecciona una de las siguientes respuestas posibles:

  • 22,400

  • $39,200

  • $19,600

  • $20,869

Explicación

Pregunta 13 de 16

1

McCabe Corporation issued $560,000 of 7% 10-year bonds. The bonds are dated and sold
on January 1, 20X1. Interest payment dates are January 1 and July 1. The bonds are issued
for $521,724 to yield the market interest rate of 8%. Use the effective-interest method for
questions 12–16.

What is the amount of discount amortization that McCabe Corporation will record on July 1,
20X1, the first semi-annual interest payment date?

Selecciona una de las siguientes respuestas posibles:

  • . $0

  • . $1,269

  • $2,240

  • $2,538

Explicación

Pregunta 14 de 16

1

McCabe Corporation issued $560,000 of 7% 10-year bonds. The bonds are dated and sold
on January 1, 20X1. Interest payment dates are January 1 and July 1. The bonds are issued
for $521,724 to yield the market interest rate of 8%. Use the effective-interest method for
questions 12–16.
What is the total cash payment for interest for each 12-month period? (All amounts
rounded to the nearest dollar.)

Selecciona una de las siguientes respuestas posibles:

  • . $22,400

  • $41,789

  • $39,200

  • $44,800

Explicación

Pregunta 15 de 16

1

What is the total interest expense for the year ended December 31, 20X1?

Selecciona una de las siguientes respuestas posibles:

  • $41,789

  • $41,879

  • 39,200

  • $19,600

Explicación

Pregunta 16 de 16

1

What is the carrying amount of the bonds on the January 1, 20X2, Balance Sheet?

Selecciona una de las siguientes respuestas posibles:

  • $524,313

  • $521,724

  • $522,993

  • $550,000

Explicación

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