ACCT 221: Financial Accounting - Quiz 1
A quiz covering key financial accounting concepts, including fundamental accounting principles and transactions.
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ACCT 221: Financial Accounting - Quiz 1
UMUC
ACCT 221
Quiz 1
1. The date on which a cash dividend becomes a binding legal obligation is on
the
a. declaration date.
b. date of record.
c. payment date.
d. last day of the fiscal year-end.
2. Dividends are predominantly paid in
a. earnings.
b. property.
c. cash.
d. stock.
3. Solaris, Inc. has 2,000 shares of 5%, $10 par value, cumulative preferred
stock and 50,000 shares of $1 par value common stock outstanding at
December 31, 2014. What is the annual dividend on the preferred stock?
a. $5 per share
b. $1,000 in total
c. $10,000 in total
d. $.05 per share
4. If a corporation issued $3,000,000 in bonds which pay 5% annual interest,
what is the annual net cash cost of this borrowing if the income tax rate is
30%?
a. $3,000,000
b. $45,000
c. $150,000
d. $105,000
5. A bond with a face value of $200,000 and a quoted price of 102⅛ has a
selling price of
a. $240,225.
b. $204,025.
c. $200,225.
d. $204,250.
UMUC
ACCT 221
Quiz 1
1. The date on which a cash dividend becomes a binding legal obligation is on
the
a. declaration date.
b. date of record.
c. payment date.
d. last day of the fiscal year-end.
2. Dividends are predominantly paid in
a. earnings.
b. property.
c. cash.
d. stock.
3. Solaris, Inc. has 2,000 shares of 5%, $10 par value, cumulative preferred
stock and 50,000 shares of $1 par value common stock outstanding at
December 31, 2014. What is the annual dividend on the preferred stock?
a. $5 per share
b. $1,000 in total
c. $10,000 in total
d. $.05 per share
4. If a corporation issued $3,000,000 in bonds which pay 5% annual interest,
what is the annual net cash cost of this borrowing if the income tax rate is
30%?
a. $3,000,000
b. $45,000
c. $150,000
d. $105,000
5. A bond with a face value of $200,000 and a quoted price of 102⅛ has a
selling price of
a. $240,225.
b. $204,025.
c. $200,225.
d. $204,250.
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Document Details
University
DeVry University
Subject
Accounting