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69 True/False questions

  1. Interest payable17. The account that reflects wages earned as of the end of the period but not yet paid.

          

  2. Issued shares19. Maximum shares that a corporation may legally issue.

          

  3. Stated value17. Recognize revenues or expenses on the accounting books even though no cash changes hand.

          

  4. Warranty16. Intangible asset - exclusive right to produce and sell an invention.

          

  5. Operating revenue19. The method of splitting partnership profits after making guaranteed payments.

          

  6. Depletion expense16. The amount of a natural resource used up during the period.

          

  7. Warranties payable17. The account that reflects wages earned as of the end of the period but not yet paid.

          

  8. Horizontal analysis20. Used when a company compares all the numbers of a financial report with a key number from the report.

          

  9. Face rate18. The percentage written on the face of a bond used to calculate the periodic cash payment.

          

  10. Corporation19. The method of splitting partnership profits after making guaranteed payments.

          

  11. Reversing entries17. Entries made on the first day of a new period taht switch the debits and credits of the adjusting entries made on the last day of the previous period.

          

  12. No-par stock19. Corporate shares with no dollar amount written on the stock certificate.

          

  13. Sharing ratio17. The amount borrowed; this is the non-interest portion paid back when making loan payments.

          

  14. Amortization expense17. A schedule showing the principal, interest, and remaining balance for each payment on a loan.

          

  15. Interest payment dates18. The dates (usually semiannual or quarterly) each year on which the borrowing corporation promises to make the perodic cash payments.

          

  16. Common stock19. They type of stock that represens the basic ownership of a corporation.

          

  17. Intangeible assets19. The equity account in a corporation that contains all the earnings the corporation has ever earned but not yet distributed to stockholders.

          

  18. Net income20. The number shown represents income or loss after a reduction for income taxes.

          

  19. Wages payable17. The account that reflects interest accrued on business debts.

          

  20. Authorized shares19. The number of shares of a corporation that the corporation has issued to investors.

          

  21. Discount17. Recognize revenues or expenses on the accounting books even though no cash changes hand.

          

  22. Vertical analysis20. Used when a company compares all the numbers of a financial report with a key number from the report.

          

  23. Outstanding shares19. Maximum shares that a corporation may legally issue.

          

  24. Discontinued operations20. If a business segment has discontinued or been sold, all the associated income, expenses, gains, and losses are combined, net of tax, and reported as a single number on the income statement.

          

  25. Other comprehensive income20. Corporate net income from all sources except six specific items.

          

  26. Underwriter18. A company with plenty of cash that buys an entire offering of bonds with the hope of reselling them for a profit.

          

  27. Market interest rate18. The day the borrowing corporation promises to pay the lump sum payment required by the bond.

          

  28. Trademarks, trade names18. The dates (usually semiannual or quarterly) each year on which the borrowing corporation promises to make the perodic cash payments.

          

  29. Benchmarking18. The investor who currently owns the bond certificates.

          

  30. Incorporate19. An artificial "person" created by the laws of a state that has the right to do business.

          

  31. Extraordinary gains and losses20. Those which are both unusual and infrequent.

          

  32. Amortization schedule17. A schedule showing the principal, interest, and remaining balance for each payment on a loan.

          

  33. Accrue18. The percentage written on the face of a bond used to calculate the periodic cash payment.

          

  34. Stock dividend19. A large distribution (2-for-1) of new stock in which stockholders turn in old certificates and receive new stock certificates.

          

  35. Guaranteed payment19. An accounting value, the equivalent to par value, given to stock with no par value written on the stock certificate.

          

  36. Treasury stock19. A corporation's investment in its own stock.

          

  37. Principal18. Certificates that corporations (and governments) issue to borrow large amounts of money from a large number of people. The certificates call for periodic cash payments each year with a lump sum payment on the maturity date.

          

  38. Adjusting entry16. Intangible asset - exclusive right to produce and sell an invention.

          

  39. Stock certificate19. A large distribution (2-for-1) of new stock in which stockholders turn in old certificates and receive new stock certificates.

          

  40. Contra-liability account20. Income from normal operations that are expected to continue in the coming years. Normal operations + Gains and losses from sale of business asset or investments.

          

  41. Par value19. An accounting value, the equivalent to par value, given to stock with no par value written on the stock certificate.

          

  42. Declaration date19. The date on which the corporate board of directors declares a dividend.

          

  43. Bondholder16. Intangible asset - the exclusive right to publish, perform, or reproduce msic, art, film, books or software.

          

  44. Preemptive right19. The right to buy a portion of each new issuance of stock in order to maintain the same ownership percentage.

          

  45. Preferred stock19. A corporation's investment in its own stock.

          

  46. Research and Development20. Corporate net income from all sources except six specific items.

          

  47. Full amortized18. The percentage written on the face of a bond used to calculate the periodic cash payment.

          

  48. Cash dividend19. A distribution of a small amount of stock proportionally to all stockholders.

          

  49. Face amount18. The amount written on the face of a bond that represents the lump sum payment the borrowing corporation promises to pay on the maturity date.

          

  50. Ratio analysis20. Used when a company computes a ratio from various numbers on the financial statements in order to analyze results.

          

  51. Maturity date18. The day the borrowing corporation promises to pay the lump sum payment required by the bond.

          

  52. Other gains and losses20. A section on the income statement showing gains from the normal process of selling assets and investments

          

  53. Cumulative effect of a change in accounting method20. Two final types of income shown at the bottom of an income statement. They have their own cumulative equity accounts. The two are foreign currency adjustments and Unrealized gains on available-for-sale investments.

          

  54. Stock split19. A distribution of a small amount of stock proportionally to all stockholders.

          

  55. Bond book value19. A dollar amount written on a stock certificate.

          

  56. Premium18. The amount that lenders pay for a bond in excess of the face amount.

          

  57. Periodic cash payments19. Money partners receive for some reason other than splitting profits by some ratio.

          

  58. Patents16. Intangible asset - exclusive right to produce and sell an invention.

          

  59. Deferred credit/Deferred revenue18. A section of the liability section fo the balance sheet. These liabilities result from receiving cash before earning it.

          

  60. Continuing operations19. An artificial "person" created by the laws of a state that has the right to do business.

          

  61. Face (of a bond)19. Usually a week or two after the declaration date. Whoever owns corporate stock on the date of record gets the dividend.

          

  62. Goodwill18. Certificates that corporations (and governments) issue to borrow large amounts of money from a large number of people. The certificates call for periodic cash payments each year with a lump sum payment on the maturity date.

          

  63. Franchises and licenses16. Intangible asset - contracts or government grants that give the owner special rights.

          

  64. Retained earnings19. The equity account in a corporation that contains all the earnings the corporation has ever earned but not yet distributed to stockholders.

          

  65. Bonds17. Recognize revenues or expenses on the accounting books even though no cash changes hand.

          

  66. Net of tax20. In a corporation, net income equals all revenues minus all expenses except "other comprehensive income."

          

  67. Date of record19. Usually a week or two after the declaration date. Whoever owns corporate stock on the date of record gets the dividend.

          

  68. Closely held corporation19. An artificial "person" created by the laws of a state that has the right to do business.

          

  69. Copyrights16. Intangible asset - exclusive right to produce and sell an invention.