Choose the FALSE sentence:

Choose the correct sentence:

The cost of land does not include:

X purchases land for $125,000. X assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. X has the land graded for $2,200. The cost for the land?

Blooms purchased a delivery van for $35,000. The company was given a $3,000 cash discount by the dealer, and paid $1,500 sales tax. Annual insurance on the van is $500. As a result of the purchase, by how much will Blooms increase its van account?

Voltaire Corporation issued 6,000 ordinary shares of CHF5 par value for CHF20 per share. The entry to record this transaction includes a credit to Share Premium—Ordinary for:

If shares are issued for a non-cash asset, the asset is recorded on the books at:

Barr Company acquires 80, 10%, 5-year, €1,000 Community bonds on January 1, 2017 for €80,000. If Barr sells all its Community bonds for €78,000, what gain or loss is recognized?

Tolan Co. purchased 90, 6% Irick Company bonds for $90,000 cash. Interest is payable annually on January 1. If 45 of the securities are sold on May 1 for $46,500 plus accrued interest, the entry would include a credit to Gain on Sale of Debt Investments for:

The book value of an asset will equal its fair value at the date of sale if:

A truck costing $154,000 was destroyed by fire. At the date of the fire, the accumulated depreciation on the truck was $70,000. An insurance check for $175,000 was received based on the replacement cost of the truck. The entry to record the insurance and truck disposition will include:

Mehring Company reported net sales of $390,000, net income of $90,000, beginning total assets of $240,000, and ending total assets of $360,000. What was the company’s asset turnover?

All of the following are reported as current liabilities except:

A current liability is a debt that can reasonably be expected to be paid:

Liabilities are classified on the statement of financial position as current or:

Any balance in an unearned revenue account is reported as a(n):

Sales taxes collected by a retailer are reported as:

Sasa purchased an equipment for €50,000. It estimated a 5-year life and €2,000 residual value. At the end of year four (before depreciation adjustment), it estimated the new total life to be 8 years and the new residual value to be €4,000. Compute the revised depreciation.

Choose the FALSE sentence:

Bonds are a form of interest-bearing notes payable.

When seeking long-term financing, an advantage of issuing bonds over issuing ordinary shares is that shareholder control is not affected.

Secured bonds have specific assets of the issuer pledged as collateral for the bonds.

A conversion feature may be added to bonds to make them more attractive to bond buyers.

The rate used to determine the amount of cash interest the borrower pays are called the stated rate.

Bond prices are usually quoted as a percentage of the face value of the bond.

The present value of a bond is the value at which it should sell in the marketplace.

When seeking long-term financing, an advantage of issuing ordinary shares over issuing bonds is that tax savings result.

Secured bonds are also known as debenture bonds.

Most of the largest corporations are privately held corporations.

The net income of a corporation is not taxed as a separate entity.

Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.

The transfer of shares from one owner to another requires the approval of either the corporation or other shareholders.

The board of directors of a corporation legally owns the corporation.

Corporations are subject to fewer regulations than partnerships or proprietorships.

A corporation is an entity separate and distinct from its owners.

As a legal entity, a corporation has most of the rights and privileges of a person.

Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.

The chief accounting officer of a corporation is the controller.

Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

. When a corporation is formed, organization costs are recorded as an asset.

The trading of shares on a securities exchange involves the transfer of already issued shares from an existing shareholder to another investor.

Limited liability of shareholders, government regulations, and additional taxes are the major disadvantages of a corporation.

Each ordinary share gives the shareholder the ownership rights to vote at shareholder meetings, share in corporate earnings, keep the same percentage ownership when new shares are issued, and share in assets upon liquidation.

The number of issued shares is always greater than or equal to the number of authorized shares.

A journal entry is required for the authorization of ordinary shares.

Publicly held corporations usually issue shares directly to investors.

The market price of ordinary shares is usually the same as its par value.

Retained earnings is the total amount of cash and other assets paid in to the corporation by shareholders in exchange for shares.