Question

73. ABC buys widgets for $5 cash and sells them on account for $8. What is the sacrifice value of a widget on the books of ABC?
    1. $5
    2. $8
    3. $3
    4. Impossible to determine from the given information

74. State and city politicians generally prefer giving their workers
    1. Defined Contribution Plans                                  B) Defined Benefit Plans

C) Social Security                                                     D) Either plan

75. Periodic vs.Perpetual Inventory Accounting
    1. Periodic Inventory Accounting results in a higher Cost of Goods Sold than Perpetual Inventory Accounting
    2. Periodic Inventory Accounting results in a lower Cost of Goods Sold than Perpetual Inventory Accounting
    3. Sometimes Periodic Inventory Accounting results in a lower Cost of Goods Sold than Perpetual Inventory Accounting and sometimes Periodic Inventory Accounting results in a higher Cost of Goods Sold than Perpetual Inventory Accounting
    4. Periodic and Perpetual Inventory Accounting result in the same Cost of Goods Sold

76. In the Allowance Method when we do the year end adjusting entry for Bad Debts
    1. Assets increase, Net Income increases.
    2. Assets stay the same, Net Income stays the same.
    3. It depends on the balance in the Allowance account before we make the entry.
    4. Assets decrease, Net Income decreases

77. ABC issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred stock is cumulative, how much of the

$18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?

1. $18,000 to preferred stockholders and $0 to common stockholders.
2. $6,000 to preferred stockholders and $12,000 to common stockholders.
3. $9,000 to preferred stockholders and $9,000 to common stockholders.
4. $12,000 to preferred stockholders and $6,000 to common stockholders.

Answer 1

1)A

2)D

3)A

4)C

5)D

100000*6%=6000 Due for last year total payable 6000+6000=12000 remaining 6000 to conmon stock