Question 1

Which of the following statements is not correct?

Accepted Answer

A)   Corporations must estimate and prepay their income taxes through quarterly tax deposits.
B)   At the end of the year,when the worksheet is prepared,the Income Tax Expense account is adjusted only if the corporation owes additional taxes.
C)   Income Tax Expense may be shown as an operating expense on a corporation's income statement.
D)   On a corporate income statement,the tax effect of each extraordinary item is offset against each gain or loss to show the effect 'net of taxes'.E) A) and B)
F) B) and D)

Question 2

A corporation may report net income for federal income tax purposes at an amount different from the amount reported for financial accounting purposes.

Accepted Answer

A) True 
 B)False

Question 3

The worksheet for a corporation and a sole proprietorship are almost identical.The major difference is the

Accepted Answer

A)   adjustment for accrued revenues.
B)   adjustment for accrued expenses.
C)   income tax adjustment.
D)   adjustment for depreciation.E) All of the above
F) A) and D)

Question 4

Property that is received as a gift should be recorded in the corporation's records at the asset's fair market value.

Accepted Answer

A) True 
 B)False

Question 5

When a corporation reacquires its own shares of stock,

Accepted Answer

A)   the Treasury Stock account is debited for the par value of the shares reacquired.
B)   the Treasury Stock account is debited for the price paid to reacquire the shares.
C)   the Treasury Stock account is debited for the original issue price of the shares.
D)   the Treasury Stock account is credited for the current market value of the shares.E) None of the above
F) All of the above

Question 6

On the worksheet for the current year ended Dec 31,column totals in the Income Statement section are debit,$179,000 and credit $224,000.Assuming income and deductions for tax purposes are the same as those for financial reporting and the company has paid estimated taxes of $5,000 to date.Tax rates remain 15% for the first $50,000;25% on the next 25,000;34% on the next $25,000 and 39% on the excess over $100,000.Prepare the adjusting entry for income taxes.

Accepted Answer

The answer of On the worksheet for the current year...

Question 7

Under MACRS depreciation,a corporation receives a tax benefit in the current year higher than the deduction reflected on the financial statements causing deferred taxes payable to increase.

Accepted Answer

A) True 
 B)False

Question 8

The Dividends Payable account appears on the balance sheet as a(n)____________________ liability.

Accepted Answer

The answer of The Dividends Payable account appears on the...

Question 9

A corporation reacquired 400 shares of its $100 par-value common stock for $105 a share.The entry to record this transaction includes a

Accepted Answer

A)   debit to Treasury Stock-Common for $40,000.
B)   debit to Treasury Stock-Common for $42,000.
C)   credit to Paid-in Capital for Treasury Stock Transactions-Common for $40,000.
D)   credit to Treasury Stock-Common for $42,000.E) A) and B)
F) A) and D)

Question 10

The ____________________ value of each share of stock is the total equity applicable to the class of stock divided by the number of shares outstanding.

Accepted Answer

The answer of The ____________________ value of each share of...

Question 11

Gender Corporation declared and issued a 10% stock dividend on December 1.Prior to the declaration,Gender's retained earnings were $200,000,shares outstanding were 20,000,$5 par value,common stock with a current market value of $10 per share.Contributed capital will increase (decrease) as a result of recording this stock dividend by:

Accepted Answer

A)   $0.
B)   $10,000.
C)   $(10,000) .
D)   $20,000.E) A) and B)
F) All of the above

Question 12

When treasury stock is purchased,the Treasury Stock account is debited for the entire amount paid for the stock.

Accepted Answer

A) True 
 B)False

Question 13

The adjustment for the amount of future taxes to be paid as a result of the MACRS depreciation deduction taken in this and prior years is recorded with a debit to

Accepted Answer

A)   Tax Expense and a credit to Deferred Income Tax Liability.
B)   Deferred Income Tax Liability and a credit to Tax Expense.
C)   Tax Expense and a credit to Deferred Income Tax Asset.
D)   Deferred Income Tax Asset and a credit to Tax Expense.E) B) and C)
F) A) and B)

Question 14

A corporation has paid estimated income taxes of $52,100 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $57,500.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.

Accepted Answer

The answer of A corporation has paid estimated income taxes...

Question 15

A declaration and distribution of a 20 percent stock dividend on common stock will

Accepted Answer

A)   not change the total stockholders' equity.
B)   increase the assets of the corporation.
C)   result in an increase in the book value of each share of common stock outstanding.
D)   increase the liabilities of the corporation.E) A) and B)
F) All of the above

Question 16

A corporation has paid estimated income taxes of $57,500 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $52,100.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.

Accepted Answer

The answer of A corporation has paid estimated income taxes...

Question 17

Treasury stock is

Accepted Answer

A)   stock previously paid for in full by a stockholder,then repurchased by the issuing corporation.
B)   donated by stockholders.
C)   always preferred stock.
D)   categorized under Paid-in Capital on the balance sheet and added to preferred and common stock.E) None of the above
F) B) and D)

Question 18

Which of the following statements regarding the income statements of corporations is not correct?

Accepted Answer

A)   Some corporations include cost of goods sold with the operating expenses.
B)   Some corporations show income tax expense as an operating expense rather than as a deduction from net income before income tax.
C)   If a gain or loss results from a transaction that is highly unusual,is clearly unrelated to routine operations,and is not expected to occur again in the near future,the gain or loss is shown as an operating expense.
D)   Corporations can use a variety of formats for the income statement.E) A) and B)
F) B) and C)

Question 19

A corporation's own capital stock that has been reacquired is called ____________________ stock.

Accepted Answer

The answer of A corporation's own capital stock that has...

Exam 21: Corporate Earnings and Capital Transactions

A corporation may report net income for federal income tax purposes at an amount different from the amount reported for financial accounting purposes.

Correct Answer
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Correct Answer
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A corporation reacquired 400 shares of its $100 par-value common stock for $105 a share.The entry to record this transaction includes a

Correct Answer
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A corporation's own capital stock that has been reacquired is called ____________________ stock.

Correct Answer
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Which of the following statements is not correct?

Correct Answer
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Which of the following statements regarding the income statements of corporations is not correct?

Correct Answer
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When a corporation reacquires its own shares of stock,

Correct Answer
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The Dividends Payable account appears on the balance sheet as a(n)____________________ liability.

Correct Answer
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The adjustment for the amount of future taxes to be paid as a result of the MACRS depreciation deduction taken in this and prior years is recorded with a debit to

Correct Answer
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A corporation has paid estimated income taxes of $52,100 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $57,500.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.

Correct Answer
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Treasury stock is

Correct Answer
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Property that is received as a gift should be recorded in the corporation's records at the asset's fair market value.

Correct Answer
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A declaration and distribution of a 20 percent stock dividend on common stock will

Correct Answer
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Under MACRS depreciation,a corporation receives a tax benefit in the current year higher than the deduction reflected on the financial statements causing deferred taxes payable to increase.

Correct Answer
verified

Correct Answer
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The worksheet for a corporation and a sole proprietorship are almost identical.The major difference is the

Correct Answer
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When treasury stock is purchased,the Treasury Stock account is debited for the entire amount paid for the stock.

Correct Answer
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The ____________________ value of each share of stock is the total equity applicable to the class of stock divided by the number of shares outstanding.

Correct Answer
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A corporation has paid estimated income taxes of $57,500 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $52,100.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.

Correct Answer
verified

Exam 21: Corporate Earnings and Capital Transactions

A corporation may report net income for federal income tax purposes at an amount different from the amount reported for financial accounting purposes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A corporation reacquired 400 shares of its $100 par-value common stock for $105 a share.The entry to record this transaction includes a

Correct AnswerverifiedShow Answer

A corporation's own capital stock that has been reacquired is called ____________________ stock.

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Which of the following statements regarding the income statements of corporations is not correct?

Correct AnswerverifiedShow Answer

When a corporation reacquires its own shares of stock,

Correct AnswerverifiedShow Answer

The Dividends Payable account appears on the balance sheet as a(n)____________________ liability.

Correct AnswerverifiedShow Answer

The adjustment for the amount of future taxes to be paid as a result of the MACRS depreciation deduction taken in this and prior years is recorded with a debit to

Correct AnswerverifiedShow Answer

A corporation has paid estimated income taxes of $52,100 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $57,500.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.

Correct AnswerverifiedShow Answer

Treasury stock is

Correct AnswerverifiedShow Answer

Property that is received as a gift should be recorded in the corporation's records at the asset's fair market value.

Correct AnswerverifiedShow Answer

A declaration and distribution of a 20 percent stock dividend on common stock will

Correct AnswerverifiedShow Answer

Under MACRS depreciation,a corporation receives a tax benefit in the current year higher than the deduction reflected on the financial statements causing deferred taxes payable to increase.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The worksheet for a corporation and a sole proprietorship are almost identical.The major difference is the

Correct AnswerverifiedShow Answer

When treasury stock is purchased,the Treasury Stock account is debited for the entire amount paid for the stock.

Correct AnswerverifiedShow Answer

The ____________________ value of each share of stock is the total equity applicable to the class of stock divided by the number of shares outstanding.

Correct AnswerverifiedShow Answer

A corporation has paid estimated income taxes of $57,500 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $52,100.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.

Correct AnswerverifiedShow Answer

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