Practice Quiz

CPA Accountant Review Questions - Question List

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26. Which of the following choices would appear first under the assets category in a balance sheet?
  1. Cash
  2. Accounts receivable
  3. Vehicles
  4. Land
  5. It depends. Accounts are usually listed alphabetically.
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27. Which of the following is considered a contra account?
  1. Ken Tyler, Capital
  2. Cash
  3. Wages payable
  4. Wage expense
  5. Accumulated depreciation
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28. Which of the following is true regarding the difference between book value and shareholder’s equity?
  1. There is no difference; these terms are synonymous.
  2. Book value excludes intangibles such as goodwill.
  3. Shareholder’s equity measures net assets.
  4. Shareholder’s equity is an asset; book value is a liability.
  5. Book value is an asset; shareholder’s equity is a liability.
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29. If Ken’s Canaries, which is not publicly traded, issues common stock in exchange for a new delivery truck, how should the transaction be recorded?
  1. At the par value of the common stock.
  2. At the stated value of the common stock.
  3. At the fair market value of the common stock.
  4. At the fair market value of the delivery truck.
  5. At the fair market value of the delivery truck or the fair market value of the common stock, whichever can be determined more objectively.
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30. Ken’s Canaries shows the following balances in the books:

Common Stock: $200,000
Paid in Capital in Excess of Par: $20,000
Retained Earnings: $95,000
Treasury Stock: $10,000

What is the total stockholder’s equity?
  1. $335,000
  2. $220,000
  3. $305,000
  4. $295,000
  5. $210,000
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