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Select one: A. Bank service charge

Question : Select one: A. Bank service charge : 2444

Select one:

A. Bank service charge

B. Deposits in transit

C. Collection of a note by bank

D. “NSF” checks

12. A $20,000, 3-month, 8% note is dated June 1, 2016. The maturity date and maturity value of the note are, respectively:

Select one:

A. September 1, 2016; $400

B. September 1, 2016; $20,400

C. August 29, 2016; $20,400

D. August 29, 2016; $20,000

13. How should intangible assets be disclosed on the balance sheet?

Select one:

A. At cost in the current assets section

B. Net of the costs already amortized

C. At the estimated fair value at the balance sheet date

D. As a reduction of stockholders' equity

14. How is the gain (loss) on a plant asset sale calculated?

Select one:

A. Asset sale price – Asset purchase cost

B. Asset sale price – Total accumulated depreciation

C. Asset sale price – Book value of the asset

D. Asset fair value – Asset sale price

15. What is a bank reconciliation?

Select one:

A. A statement sent monthly by a bank to its depositors.

B. A schedule that accounts for differences between a firm’s cash account balance and the balance reported by its bank.

C. A formal financial statement that lists all of a firm’s bank account balances.

D. A merger of two banks that were previously competitors.

16. The Cash amount properly shown on the year-end balance sheet is the:

Select one:

A. Balance in the general ledger account after entries from the year-end bank reconciliation have been posted

B. Balance per the year-end bank statement less deposits in transit and plus outstanding checks

C. Balance in the general ledger account before the year-end bank reconciliation

D. Balance per the year-end bank statement

17. If the Boulder Company’s accountant mistakenly records a deposit of $454 as $545, the error would be shown on the bank reconciliation statement as a:

Select one:

A. $91 addition to the book balance

B. $91 addition to the bank balance

C. $91 deduction from the book balance

D. $91 deduction from the bank balance

18. Which of the following depreciation methods would result in the most depreciation in the first year, assuming an eight year life and no salvage value?

Select one:

A. The depreciation would be the same under both methods

B. Double-declining balance

C. Straight line

D. Not enough information available to determine answer

19. The book value of a depreciable asset is:

Select one:

A. The original cost of the asset

B. The original cost of the asset less its salvage value

C. The accumulated depreciation on the asset

D. The original cost of the asset less its accumulated depreciation

20. Which of the following is not a balance sheet category for long-lived assets?

Select one:

A. Plant assets

B. Revenue expenditures

C. Intangible assets

D. None of the above

21. Which of the following is a term identifying the periodic expensing of a plant asset?

Select one:

A. Amortization

B. Depreciation

C. Depletion

D. Betterment

22. Which of the following items would you add to the bank statement balance to arrive at the reconciled cash balance in a bank reconciliation:

Select one:

A. Bank service charges

B. Outstanding checks

C. “NSF' checks

D. None of the above

23. On which financial statement and at what amount are accounts receivable reported?

Select one:

A. Balance sheet at the amount owed by customers

B. Income statement at the net uncollectible amount

C. Income statement at the amount written off

D. Balance sheet at the net realizable value

24. After writing off a customer's account, a company using the allowance method subsequently collected the account in full. It should:

Select one:

A. Debit Cash and credit Accounts Receivable

B. Debit Cash and credit Miscellaneous Income

C. Debit Accounts Receivable and credit Allowance for Doubtful Accounts

D. Both A and C

25. Assume the following unadjusted account balances at the end of the accounting period for Johanna Company: Accounts Receivable, $100,000; Allowance for Doubtful Accounts, $1,400 (debit balance); and Net sales, $1,200,000.

If Johanna’s past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is:

Select one:

A.

Bad Debts Expense

12,000

Accounts Receivable

12,000

B.

Bad Debts Expense

12,000

Allowance for Doubtful Accounts

12,000

C.

Bad Debts Expense

13,400

Allowance for Doubtful Accounts

13,400

D.

Bad Debts Expense

10,600

Allowance for Doubtful Accounts

10,600

Bad Debts Expense

2,400

 

 

Allowance for Doubtful Accounts

 

2,400

 

 

 

 

       

 

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