True/False
Indicate whether the statement is true or
false.
|
|
|
1.
|
An owner of one or more shares of a corporation is known as a partner.
|
|
|
2.
|
A corporation's dividend account is a temporary account similar to a
proprietorship's drawing account.
|
|
|
3.
|
Action to distribute corporate earnings to stockholders is called declaring a
dividend.
|
|
|
4.
|
Accounts receivable that cannot be collected are called write-offs.
|
|
|
5.
|
The amount an owner expects to receive when a plant asset is removed from use is
called expected return on investment.
|
|
|
6.
|
The amount of federal income tax expense a corporation must pay is calculated
using a tax rate table set by Congress.
|
|
|
7.
|
Tax percentages are calculated as a straight percentage of net income based on
total income of the business.
|
|
|
8.
|
A corporation must pay its federal income taxes monthly and file an annual
income tax return.
|
|
|
9.
|
Since a service business does not sell merchandise it does not need to make
adjustments to uncollectible accounts expense and depreciation expense.
|
|
|
10.
|
An asset is obsolete when a newer asset can operate more efficiently or produce
better service.
|
Matching
Use the word list provided below not all words will be used
some may be used multiple times. Copy and paste so they are exact matches. Any extra spaces or
misspellings will be incorrect.
|
|
|
A. | deposit | G. | retained earnings | B. | share of stock | H. | board of directors | C. | dividends | I. | office supplies | D. | less than $100.00 | J. | merchandise inventory | E. | depreciation
expense | K. | book
value | F. | current assets | L. | straight-line method |
|
|
|
1.
|
The difference between a plant asset's account balance and its related
contra account balance is called ____.
|
|
|
2.
|
Charging an equal amount of depreciation expense for a plant asset in each year
of useful life is called the ____ of depreciation.
|
|
|
3.
|
A group of persons elected by the stockholders to manage a corporation is
called the ____.
|
|
|
4.
|
An amount earned by a corporation and not yet distributed to stockholders is
called ____.
|
|
|
5.
|
The amount of goods on hand for sale to customers is called ____.
|
|
|
6.
|
Cash and other assets expected to be exchanged for cash or consumed within a
year are called ____.
|
|
|
7.
|
Each unit of ownership in a corporation is known as a(n) ____.
|
|
|
8.
|
Which of the following is not an example of a plant asset?
|
|
|
9.
|
Earnings distributed to stockholders are called ____.
|
|
|
10.
|
The portion of a plant asset's cost that is transferred to an expense
account in each fiscal period during a plant asset's useful life is called ____.
|