Question 1. Merchandise inventory is reported on the balance sheet in the section entitled _____.<\/p>\n
current assets<\/p>\n
fixed assets<\/p>\n
current liabilities<\/p>\n
stockholders’ equity<\/p>\n
Question 2. Question : A machine with a useful life of 10 years and a residual value of $4,000 was purchased for $30,000. What is annual depreciation under the straight-line method?<\/p>\n
$3,000<\/p>\n
$3,400<\/p>\n
$2,600<\/p>\n
$5,200<\/p>\n
Question 3. Question : The Drilling Company purchased a mining site for $500,000 on July 1, 2010. The company expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered. The estimated residual value of the property is $80,000. During 2010, the company extracted 6,500 tons of ore. The depletion expense for 2010 is<\/p>\n
$37,700<\/p>\n
$42,000<\/p>\n
$32,500<\/p>\n
$27,300<\/p>\n
Question 4. Question : What type of account is Allowance for Doubtful Accounts?<\/p>\n
Contra asset<\/p>\n
Asset<\/p>\n
Revenue<\/p>\n
Expense<\/p>\n
Question 5. Question : Use the following data to calculate cost of merchandise sold under FIFO method.<\/p>\n
September 1 Beginning Inventory 15 units @ $20<\/p>\n
September 10 Purchases 20 units @ $25<\/p>\n
September 20 Purchases 25 units @ $28<\/p>\n
September 30 Ending Inventory 30 units<\/p>\n
$825<\/p>\n
$750<\/p>\n
$675<\/p>\n
$600<\/p>\n
Question 6. Question : A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account.<\/p>\n
The face value of the note is _______.<\/p>\n
: $6,100<\/p>\n
$5,400<\/p>\n
$5,900<\/p>\n
$6,000<\/p>\n
Question 7. Question : In reference to a promissory note, the person who makes the promise to pay is called the _______.<\/p>\n
maker<\/p>\n
payee<\/p>\n
seller<\/p>\n
receiver<\/p>\n
Question 8. Question : The due date of a 60-day note dated July 12 is _______.<\/p>\n
: September 11<\/p>\n
September 8<\/p>\n
September 9<\/p>\n
September 10<\/p>\n
Question 9. Question : A written promise to pay a sum of money on demand or at a definite time is called a (n) _______.<\/p>\n
default<\/p>\n
deferral<\/p>\n
accrual<\/p>\n
promissory note<\/p>\n
Question 10. Question : A note receivable due in 90 days is listed on the balance sheet under _______.<\/p>\n
long-term liabilities<\/p>\n
fixed assets<\/p>\n
current liabilities<\/p>\n
current assets<\/p>\n
Question 11. Question : A machine was purchased for $60,000. It has a useful life of 5 years and a residual value of $6,000. Under the straight-line method, what is annual depreciation expense?<\/p>\n
$13,200<\/p>\n
$12,000<\/p>\n
$11,000<\/p>\n
$10,800<\/p>\n
Question 12. Question : A note receivable due in five years is listed on the balance sheet under the caption _______.<\/p>\n
investments<\/p>\n
current assets<\/p>\n
fixed assets<\/p>\n
stockholders’ equity<\/p>\n
Question 13. Question : Goodwill is _______.<\/p>\n
amortized similar to other intangibles<\/p>\n
only written down if an impairment in value occurs<\/p>\n
charged to expense immediately<\/p>\n
amortized over 40 years or its economic life, whichever is shorter<\/p>\n
Question 14. Question : The two most widely used methods for determining the cost of inventory are _______.<\/p>\n
FIFO and LIFO<\/p>\n
FIFO and average cost<\/p>\n
LIFO and average cost<\/p>\n
gross profit and average cost<\/p>\n
Question 15. Question : Salvage value has a similar meaning as _______.<\/p>\n
residual value<\/p>\n
scrap value<\/p>\n
book value<\/p>\n
both residual value and scrap value<\/p>\n
Question 16. Question : Receivables are usually a significant portion of _______.<\/p>\n
total current liabilities<\/p>\n
total liabilities<\/p>\n
total current assets<\/p>\n
total assets<\/p>\n
Question 17. Question : The inventory data for an item for November are:<\/p>\n
Nov. 1 Inventory 25 units at $20<\/p>\n
10 Purchased 30 units at $21<\/p>\n
30 Purchased 10 units at $22<\/p>\n
Sold 35 units<\/p>\n
Using the last-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30?<\/p>\n
$640<\/p>\n
$623<\/p>\n
$600<\/p>\n
$605<\/p>\n
Question 18. Question : Intangible assets are used in operations but _______.<\/p>\n
cannot be specifically identified<\/p>\n
cannot be sold<\/p>\n
lack physical substance<\/p>\n
cannot be long-lived<\/p>\n
Question 19. Question : Book value is defined as _______.<\/p>\n
current market value less residual value<\/p>\n
cost less residual value<\/p>\n
current market value less accumulated depreciation<\/p>\n
cost less accumulated depreciation<\/p>\n
Question 20. Question : To measure depreciation, all of the following must be known EXCEPT:<\/p>\n
Market value<\/p>\n
Residual value<\/p>\n
Historical cost<\/p>\n
Estimated life<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1. Merchandise inventory is reported on the balance sheet in the section entitled _____. current assets fixed assets current liabilities stockholders’ equity Question 2. Question : A machine with a useful life of 10 years and a residual value Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49155","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49155"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49155\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}