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Study Resources (Accounting)

11) Which of the following is not an intangible asset? A) A leased delivery truck B) A patent C) A franchise fee D) Goodwill 12) To record the depletion of natural resources, the most common method is to use units-of-production in determining the amount of depletion. 13) Patents, copyrights, and franchises are intangible assets with the.
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30) The amortization method and double-declining-balance method are both accelerated amortization methods. 31) The units-of-production method does not take into account the passage of time. 32) To calculate the double-declining-balance rate, you would divide 2 by the number of years of useful life. 33) Net income is affected by the amortization method used. 34).
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31) The Accounts Payable balance has decreased during the year. How would this event affect the statement of cash flows operations section - indirect method? A) It is already included in the net income. B) It would affect the operations section positively. C) It would affect the operations section negatively. D) Does not affect.
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41) Amortization requires the use of cash. 42) The rationale for adding amortization to net income is that cash was paid out. 43) Amortization is shown only when using the indirect method of preparing a statement of cash flow. 44) The indirect method shows the cash received from customers in the cash flows.
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19) Mid-Iowa Internet Service uses the direct write-off method for recording bad debts. Journalize the following transactions for Mid-Iowa: 2010 Mar. 13 Wrote off P. Book's account for $330 Apr. 17 Wrote off c) Catron's account for $75 Jul. 5 Recovered $50 from c) Catron 2011 Jan. 9 Recovered $220 from P. Book For each of the.
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59) The Customer Center has two tabs that are called: A) Customers & Invoices and Credits. B) Customers & Jobs and Transactions. C) Customers & Orders and Invoices. D) Clients & Jobs and Transactions. 60) To view all open windows within QuickBooks, select: A) the Window menu and scroll to the list at the bottom. B) the.
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53) Identify each of the following transactions as an operating activity (O), an investing activity (I), a financing activity (F), or a transaction that is not reported on the statement of cash flows (N). a) ________ Receipt of interest b) ________ Increase of accounts payable c)________ Borrowed money from a bank d) ________ Purchase.
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16.4   Preparing a statement of cash flows. 1) Which of the following is not a cash flow from investing activities? A) Loaning cash to borrowers B) Payment of cash dividends C) Sale or purchase of land D) Cash received from the sales of shares 2) If $10,000 was generated from operations, $4,000 was used for investing.
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51) Indicate the effect that each of the following transactions has on the cash balance. Use (I) for increase, (d) for decrease, and (N) for no change. a) ________ Increase in inventory b) ________ Sale of common shares for cash c) ________ Payment of dividends d) ________ Amortization expense for the period e) ________ Payment.
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15.6   Explaining amortization and how it applies to intangible assets. 1) Amortization of a patent was ignored. This error would cause A) the period's net income to be overstated. B) the period's net income to be understated. C) the period end assets to be understated. D) None of these are correct. 2) The credit portion of.
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16.3   Preparing the operating activities section of the statement of cash flows using the direct method. 1) The method of reporting cash flows from operating activities under which revenues and expenses on the income statement are adjusted to reflect the amount of cash received or expended for each item is the A).
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16.2   Preparing the operating activities section of the statement of cash flows using the indirect method. 1) When preparing the statement of cash flows by the indirect method, if current assets have increased the difference is A) added to net income. B) added to investments. C) deducted from net income. D) subtracted from investments. 2) Using.
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15.2   Calculating amortization using one of four methods: straight-line, declining balance, units of production and sum of the years’ digits. 1) The cost of equipment is expensed A) at the time it is paid. B) over the periods that benefit the company. C) in the period it is purchased. D) in the period it is.
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79) The Help window has tabs named: A) Search Options and Relevant Topics. B) Index and Search. C) Search and Help Index. D) Relevant Topics and Search. 80) The name of the Help window tab that provides general help by topic is called the: A) Relevant Topics tab. B) Search Topics tab. C) Index tab. D) Search tab. 81) The.
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11) When comparing net cash provided by operations using the indirect versus direct method, A) net cash is higher using the indirect method. B) net cash is lower using indirect method. C) there is no difference between the two methods. D) amortization expense is used in the direct method. 12) Rick Corporation's Accounts Receivable decreased.
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20) Ken Applegate owned equipment with an original cost of $30,000 with $20,000 of accumulated amortization. The equipment was traded in on new equipment costing $50,000 with a trade-in allowance of $8,000 and the balance in cash. Determine the following. a. The book value of the old machine was ________________. b. The.
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21) The records of Ashley Boutique showed Net Loss, $25,000; Amortization Expense, $35,000; and increase in Supplies on Hand, $8,000. The amount of Net Cash Flow from Operating Activities using the indirect method is A) $18,000. B) $ 2,000. C) ($18,000). D) ($2,000). 22) Accounts Receivable amounted to $215,000 at the beginning of the year.
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12) Define and compare capital expenditures and revenue expenditures. 13) Prepare journal entries for the following for Bartz, Inc. May 11 Replaced the engine in a Van #1, paying cash of $5,400. May 18 Paid cash for a tune-up of the engine in Van #2 of $570. May 29 Paid cash to add a.
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14.5   Using the direct write-off method. 1) The two methods of accounting for uncollectible receivables are the direct write-off method and the A) equity method. B) allowance method. C) interest method. D) cost method. 2) The two methods of accounting for uncollectible receivables are the allowance method and the A) cost method. B) interest method. C) direct write-off method. D).
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23) R.J. Berkshire incurred the following expenditures to buy new equipment: Invoice, subject to 3% discount$25,000 Installation cost1,800 Insurance for equipment after installation500 Sales tax1,500 Discount taken The amount the Equipment account will be debited for is ________________. 24) Harrison Services purchased a plant asset to be used in its business. The expenditures included: Cost of machine$6,000 Special base.
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14) Another name for plant, property, and equipment is long-term asset. 15) Assembly costs, and any other costs necessary to get a machine ready for operation, except for freight costs, would be added to the cost of the machine. 16) If there are repairs needed in the process of installation, this should.
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21) The portion of an intangible asset's cost that is recognized as an expense is ________. 22) The intangible that can have the longest life before renewal is a ________. Column 1Column 2Column 3Column 4 23) Loss on goodwill________________________________________________ 24) Coal deposit________________________________________________ 25) Gain from sale of plant asset________________________________________________ 26) Goodwill________________________________________________ 27) Loss from fire________________________________________________ 28) Amortization of.
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49) The menu command for activating an open task window when performing multiple tasks is found under the: A) Reports menu. B) Windows menu. C) Help menu. D) Banking menu. 50) The menu command for accessing help files, reviewing the software license agreement, and verifying the software version is found under the: A) Reports menu. B) Windows.
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15.4   Explaining the difference between capital expenditures and revenue expenditures. 1) Capital expenditures would include A) additions. B) betterments. C) extraordinary repairs D) All of these answers are correct. 2) Revenue expenditures include A) additions to existing plant assets. B) periodic normal maintenance costs. C) initial costs of acquiring plant assets. D) All of these answers are correct. 3) A company.
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  16.1   Understanding the purpose of a statement of cash flows. 1) A statement of cash flows A) has three main sections: net cash flow from operations, investing, and financing activities. B) may be computed directly or indirectly. C) is a statement used to better understand the financing and investing activities. D) All of the above.
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31) Accumulated depletion coal mine________________________________________________ 32) Copyright________________________________________________ 33) Loss on disposal of plant asset________________________________________________ 34) Patent________________________________________________ 35) Amortization expense________________________________________________ 36) Accumulated amortization________________________________________________ 37) Machinery________________________________________________ 38) Land improvements________________________________________________ 39) Building________________________________________________ 40) Land________________________________________________ 41) Cash________________________________________________ .
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21) What would be the amortization using double-declining-balance to compute the expense for year 2 of a machine costing $15,000 plus GST of 5%, when residual value is $5,000, and useful life is 5 years? A) $3,600 B) $6,000 C) $5,000 D) $3,000 22) What would be the amortization expense in year 1, using units-of-production,.
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19) All the following apply to manual accounting EXCEPT: A) business transactions occur and are manually entered onto a source document. B) record the adjusting entries on the general journal and then post entries to the general ledger. C) manually prepare the trial balance. D) the software posts transactions to subsidiary journal, account ledger,.
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21) A transaction of issuance of shares in exchange for equipment would be recorded as a(n) A) operating activity. B) investing activity. C) financing activity. D) noncash investing and financing activity. 22) A statement of cash flows would not disclose the effect of which of the following transactions? A) Dividends received on stock investments B) Receiving cash.
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1) Accounting software eliminates tedious processes such as typing documents, manually posting and calculating transactions, and documenting the audit trail. 2) Application software does not have to match the computer operating system software. 3) When loading QuickBooks, the welcome screen has an overview tutorial that allows you to learn about how QuickBooks.
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11) Which amortization method uses the current book value in determining amortization? A) Straight-line B) MACRS C) Units-of-production D) Double-declining balance. 12) The amortization method that allocates amortization of a plant asset based on the number of units produced is the: A) straight-line method. B) units-of-production method. C) modified accelerated cost recovery method. D) double-declining-balance method. 13) Josh Kindel purchased.
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15.1   Calculating the cost of an asset. 1) Another name for property, plant, and equipment assets is A) current assets. B) intangible assets. C) fixed assets. D) equity assets. 2) The amount to include in the entry to record the cost of a property, plant, and equipment asset would include A) acquisition cost. B) freight. C) installation. D) All of.
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11) Myers Corporation exchanged an old machine costing $20,000, with an accumulated amortization of $17,000, and trade-in value of $5,000 for a new machine cash price of $24,000. What is the journal entry? A) Debit Machinery $22,000; debit Accumulated Amortization $17,000; credit Machinery $20,000; credit Cash $19,000 B) Debit Machinery $19,000; debit.
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15.3   Calculating amortization for tax purposes using the Capital Cost Allowance system. 1) Under CCA rules, salvage value is A) added to the straight-line amortization B) subtracted from the cost of the asset C) ignored D) added to the cost of the asset 2) A tractor costing $80,000 plus HST of 13% is amortized using CCA.
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37) Financing activities include transactions with owners and creditors. 38) Dividends received on investments made in the shares of other companies is an example of a financing activity. 39) One section of a statement of cash flows is purchasing activities. 40) Changes in current assets and current liabilities accounts deal with financing activities. 41).
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25) Prepare general journal entries to record the following transactions for the Fulton Company. (The company uses the balance sheet approach for recording bad debts expense.) 2010 Dec. 31 Recorded Bad Debts Expense, $1,200 2011 Jan. 3 Wrote off b) Jals' account as uncollectible, $50 Mar. 4 Wrote off a) Hall's account as uncollectible, $75 Jul..
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31) After the cash flow statement is prepared, what account balance amount can be compared for accuracy? A) Retained Earnings B) Note Payable C) Mortgage Payable D) Cash 32) Activities that increase and decrease as a result of purchasing or selling plant assets are A) marketing activities. B) operating activities. C) investing activities. D) financing activities. 33) Activities that obtain.
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11) Cash flows from financing activities would include A) issuance of long-term notes. B) cash purchase of stocks and bonds. C) cash from sale of stock investments. D) All of these answers are correct. 12) Payments of cash dividends to shareholders would result in A) an decrease of cash flow from operating activities. B) a decrease of.
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15.5   Journalizing entries for discarding, selling, or exchanging plant assets. 1) When selling a plant asset, the gain was not recorded, but pocketed. This error would cause A) the period's net income to be understated. B) the period's net income to be overstated. C) the period end assets to be overstated. D) None of these.
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29) Employee activities in QuickBooks include: A) deposits and checks activities. B) sales, accounts receivables, and cash receipts. C) purchases, accounts payable, and cash disbursements. D) payroll. 30) One method of opening an existing company is to select: A) File>>New company. B) File>>Open or Restore Company. C) File>>Save Copy or Backup. D) File>Restore an Existing Company>>. 31) To use a.
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