Acct 504 Final Exam Guides Essay

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ACCT 504 Final Exam Guides Click Link Below To Buy: Or Visit (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization (TCO A) When a corporation distributes a dividend, _____ the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a debit the Dividends account will be decreased with a debit (TCOs A, B) Below is a partial list of account balances for Cerner Company Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 Under the accrual basis of accounting, revenues are recorded and reported _____. When companies receive payments for jobs performed or products provided When companies have provided products or performed services When companies receive payments prior to providing products or performing services When companies receive payments after providing products or performing services In a period of increasing prices, which inventory cost flow assumption will result in the highest amount of net income? LIFO The average cost method FIFO Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at 94. The journal entry to record the issuance will show a _____. Debit to Cash of $100,000 Credit to Bonds Payable of $94,000 Credit to Premium on Bonds Payable of $4,000 Debit to Discount on Bonds Payable of $6,000 What did Cerner Company show as total credits? $21,500 $21,000 $20,500 $22,000 (TCOs B, E) Using accrual accounting, expenses
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