Multiple Choice Answers

Amos Company acquired land in exchange for 10,000 shares of its $10 par common stock. The fair market value of the land is not determinable, but the stock is widely traded and was selling for $25 per share when exchanged for the land. At what amount should the land be recorded by Amos Company?
a. $150,000
b. $250,000
c. $350,000
d. $100,000

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $400,000 and Allowance for Doubtful Accounts has a balance of $35,000. What is the net realizable value of the accounts receivable?
a. $365,000
b. $400,000
c. $435,000
d. $35,000

Before a stock dividend can be declared or paid, there must be sufficient cash.

Current liabilities are:
a. due but not receivable for more than one year
b. due but not payable for more than one year
c. due and receivable within one year
d. due and payable within one year

A written promise to pay a sum of money on demand or at a definite time is called a(n):
a. default
b. deferral
c. accrual
d. promissory note