ACC205 Week 4 – Quiz: Chapters 7 & 8
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Question 1
1 / 1 pts
Current Liabilities are _____________________________.
listed before assets on the balance sheet
not described by any of these answers
obligations that must be settled within one year or the operating cycle, whichever is shorter
Correct!
obligations that must be settled within one year or the operating cycle, whichever is longer
Question 2
1 / 1 pts
The Unearned Revenue account is used to record ____________________.
Correct!
a deposit received from a customer in advance for a future product or service.
the sale of a product to a customer
loans made to customers so they can purchase products
purchase orders received from customers
Question 3
1 / 1 pts
A contingent liability like a lawsuit is required to be recorded when the probability of an unfavorable outcome is __________________.
anybody’s guess
remote
possible
probable
Question 4
1 / 1 pts
An employer is required to match certain payroll taxes like ________________.
None of the taxes listed here
Social security
Workers compensation
Unemployment taxes
Question 5
1 / 1 pts
If a firm plans to conduct business in multiple states what organization form is required?
Sole proprietorship
No special form of organization is required
Partnership
Corporation
Question 6
1 / 1 pts
The form of business organization that has a perpetual existence is the ___________.
none of these
partnership
sole proprietorship
corporation
Question 7
1 / 1 pts
The concept of mutual agency in relationship to a partnership means______________.
a partner can financially obligate all partners in the partnership without their knowledge
there is no such concept that impacts a partnership
a partner cannot financially obligate the other partners in the partnership without their knowledge
each partner must use the same insurance agent
Question 8
1 / 1 pts
A sole proprietor __________________.
Pays no Social Security or Medicare taxes
Has limited liability for debts of the organization
Has unlimited liability for debts of the firm
Files a separate tax return
Question 9
1 / 1 pts
The journal entry needed when a partner contributes assets to the partnership would include ____________________.
a debit to equity and a credit to owners capital
a debit to an asset account and a credit to owners capital
a debit to an asset account and a credit to common stock
a debit to owners capital and a credit to an asset account
Question 10
1 / 1 pts
The term par value in a business organization refers to_________________.
none of the stated explanations
the legal liability of a corporation in the event of a lawsuit
the owners golf handicap
the legal capital requirement per share of stock
Quiz Score: 10 out of 10
ACC205 Week 4 – Quiz: Chapters 7 & 8 Answer
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