Which one of the following would constitute a highly inflationary economy when determining the functional currency of a foreign entity?
(A)20% inflation for each of the past 5 years.
(B)30% inflation for each of the past 3 years.
(C)35% inflation for each of the past 3 years.
(D)20%, 35%, and 40% inflation, respectively, for each of the past 3 years.
Bart's Brewskies saw sales of $50,000 in December-primarily due to New Year's Eve celebrations. Bart determined that 30% of his sales are paid in cash, while the rest are billed for their brewskies. Of the money owed, 40% is paid December, while the remaining is paid the following month. What is the increase of Accounts Receivable on New Year's Eve?
(A)$21,000 (B)$14,000 (C)$15,000 (D)$35,000 (E)$50,000
Correct Answer: A
Which of the following is subtracted from net sales to determine gross profit?
(A)Mark one answer: (B)Cost of goods sold (C)Expenses (D)Both cost of goods sold and expenses (E)Cost of goods sold, expenses, and taxes (F)Taxes
Correct Answer: A
If a corporation issues a 10-year $100,000 8% bond, what is the total that the issuing corporation pays to the bondholder over the next 10 years? Mark one answer:
(A)$80,000 (B)$140,000 (C)$180,000 (D)$100,000 (E)$200,000
Correct Answer: C
More CPA Exam Questions
- 1If a corporation issues a 10-year $100,000 8% bond, what is the total that the issuing corporation pays to the bondholder over the next 10 years? Mark one answer:
- 2Common stock has a _____ balance and is a/an _____ to the Corporation.
- 3Which of the following is responsible for identifying problems and proposing initial solutions?
- 4Nala Inc. reported deferred tax assets and deferred tax liabilities at the end of 20X4 and at the end of 20X5. Acording to FASB 109, for the year ended 20X5, Nala should report deferred income tax expense or benefit equal to the
- 5On July 1, Year 5, Eagle Corp. issued 600 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, Year 5 and mature on April 1, Year 15. Interest is payable semiannually on April 1 and October 1. What amount did Eagle receive from the bond issuance?