1 When a stock dividend was declared above par, the excess was ignored and only the par value was used. This error would cause:

the period's end assets to be overstated.

the period's end liabilities to be overstated.

the period's end stockholders' equity to be overstated.

None of the above.

2 if direct labor for the month is $30,000, overhead is applied based on direct labor, annual overhead is estimated to be $500,000, and annual direct labor is estimated to be $800,000, what is the entry to apply overhead to production?

Debit Work-in-Process Inventory $18,750; credit Payroll $18,750

Debit Overhead-Applied $18,750; credit Work-in-Process Inventory $18,750

Debit Work-in-Process Inventory $18,750; credit Overhead-Applied $18,750

Debit Work-in-Process Inventory $30,000; credit Overhead-Applied $30,000

3 interest expense was $10,000, income tax expense $20,000, and net income after taxes is $60,000. The number of times interest was earned is:

nine times.

eight times.

seven times.

six times.

4 tricia and Jennifer formed a partnership. Tricia invested $10,000 in cash, and Jennifer invested $5,000 in cash, equipment valued at $6,000, and $1,000 accounts payable. The proper entry to record this is:.

debit Cash 15,000; debit Equipment 6,000; credit Accounts Payable $1,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $10,000.

debit Cash 15,000; debit Equipment 6,000; debit Accounts Payable $1,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $10,000.

debit Cash $15,000; debit Equipment $6,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $10,000.

debit Cash $15,000; debit Equipment $6,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $11,000.

5 which would not go into the operating activities section of a statement of cash flows using the direct method?

Depreciation expense

Payment for dividends

Selling of plant, property, and equipment

All of the above.

6 which of the following is true of a partnership?

Actions of one partner are binding on all the other partners.

Each partner is individually liable for partnership debts.

All of the owners always share income and losses equally.

Both A and B