Reference no: EM131570167

Question 1: The two accounting methods for bad accounts are the reservation method and the:

Cost method

Method of interest

Method of participation

Direct cancellation method

Question 2: When is an account uncollectible?

There is no general rule for determining when an account becomes uncollectible.

At the end of the fiscal year.

When accounts receivable is converted into notes receivable.

When there is a discount on the bills receivable.

Question 3: When the amount of use of an asset varies from year to year, the method for determining the amortization expense that best fits the cost allocation with income is:

Production unit method

MACRS

Straight line method

Decreasing double balance method

Question 4: A team costing $ 160,000, an estimated residual value of $ 40,000 and an estimated life of 15 years, is amortized by the straight-line method over 4 years. Due to the obsolescence, it was determined to shorten the remaining useful life for 3 years and to change the residual value to zero. The amortization expense for the current and future years is:

$ 11,000

$ 11,636

$ 16,000

$ 8,000

Question 5: A machine with a cost of $ 120,000 has an estimated residual value of $ 15,000 and an estimated life of 5 years or 15,000 hours. It is depreciated by the unit of production method. What is the amount of depreciation for the second year, during which the machine was used 5,000 hours?

$ 5,000

$ 45,000

$ 35,000

$ 21,000

Question 6: The depreciation method that does not use the residual value when calculating the expense for depreciation of the first year is:

Double declining balance

Production units

None of the above

straight line

Question 7: The direct amortization method for bad debts ...

It is often used by small businesses with few accounts receivable.

Emphasizes the matching of expenses with income.

Emphasizes the realization value in cash.

to. Emphasizes the relationships of the balance receivable.

Question 8: If it is expected that the collection of other accounts receivable will be in a term greater than one year, it is classified as:

Other accounts receivable in current assets

Investment in non-current assets

Investment in current assets

Other receivables in non-current assets

Question 9: The term "accounts receivable" includes:

Goods to be collected by persons or companies

Cash to pay debtors

Cash payable to creditors

Claims against other entities

Question 10: A team costing $ 220,000 has an estimated residual value of $ 30,000 and an estimated life of 10 years or 19,000 hours. It is depreciated by the straight-line method. What is the amount of depreciation for the first year, during which the equipment was used 2,100 hours?

$ 22,000

$ 21,000

$ 30,000

$ 19,000

Question 11: If a fixed asset, such as a computer, was purchased on January 1 of the current year for $ 3,750 and with an estimated life of 3 years and a salvage or residual value of $ 150, the journal entry for monthly expense with straight line depreciation is:

-Accumulated depreciation 100

Depreciation expense 100

-Accumulated depreciation 1,200

Depreciation expense1,200

-Depreciation expense 1,200

Accumulated depreciation 1,200

-Depreciation expense 100

Accumulated depreciation 100

Question 12: The notes or accounts receivable that result from sales transactions are often called:

Sales receivable

Non-business transactions

commercial transactions

Merchandise credits

Question 13: After the accounts are adjusted and closed at the end of the year, accounts receivable has a final balance of $ 340,000 and an estimate of $ 51,000 is estimated for doubtful accounts. What is the net realizable value of accounts receivable?

$ 391,000

$ 289,000

$ 340,000

$ 51,000

Question 14: Which of the following credits will not be classified as "another accounts receivable":

Receivables

Refundable income tax

Interest receivable

Advance to an employee

Question 15: The formula for determining the cost to be depreciated is

Initial cost + residual value

Initial cost - accumulated depreciation

Initial cost-residual value

Depreciable cost = initial cost

Question 16: The most widely used depreciation method is:

Output units

straight line

Double declining balance

others

Question 17: Other accounts receivable includesall the following except:

Accounts receivable from employees

Tax receivable

Receivables

Interest receivable

Question 18: The credit that is usually manifested in a formal way, through a written credit document, is known as:

Accounts receivable

Commercial receivables

Charge receivable

Income tax receivable

Question 19: A machine costing $ 75,000 has an estimated residual value of $ 5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second year, using the double declining balance method?

$ 17,500

$ 18,750

$ 37,500

$ 16,667

Question 20: The daily entry to register the purchase on credit of a computer at a cost of $ 975 to be used within the company would be

-Office supplies 975

Accounts payable 975

-Office supplies 975

Accounts receivable 975

-Office equipment 975

Accounts payable 975

-Office equipment 975

Accounts receivable 975