We have sent an email with your new password.

Close this window

Accounting Test 3

93 Questions  I  By Djjensen44
Accounting Test 3
Texas State

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  Recievables are frequently classified as:
A.
B.
C.
D.
2.  Which of the following approaches for bad debts is best described as a balance sheet method?
A.
B.
C.
D.
3.  One of the following statements about promissory notes is incorrect. The incorrect statement is:
A.
B.
C.
D.
4.  Which of the following statements about Visa credit card sales is incorrect?
A.
B.
C.
D.
5.  Accounts and notes recievable are reported in the current assets section of the balance sheet at:
A.
B.
C.
D.
6.  Notes and accounts receivable that result from sales transactions are often called trade receivables.
A.
B.
7.  The opportunity to receive a cash discount usually occurs when a retailer sells to customers.
A.
B.
8.  Cash (net) realizable value is the net amount the company expects to recieve in cash.
A.
B.
9.  The percentage-of-receivable basis results in a better matching of expenses with revenues than the percentage-of-sales basis.
A.
B.
10.  Under the percentage-of-receivables basis, the amount of bad debt expense is the difference between the required balance in the allowance account.
A.
B.
11.  Retailers consider sales from the use of bank credit cards as credit sales.
A.
B.
12.  In a promissory note, the party making the promise to pay is called the maker.
A.
B.
13.  To determine the maturity date of a note, you need to include the date the note is issued but omit the due date.
A.
B.
14.  Companies report short-term notes receivable at their cash (net) realizable value.
A.
B.
15.  A dishonored note receivable is no longer negotiable and the payee has no claim against the maker of the note.
A.
B.
16.  Accounting issues associated with accounts receivable include all of the following except:
A.
B.
C.
D.
17.  Allowance for Doubtful Account is:
A.
B.
C.
D.
18.  Under the allowance method, estimated uncollectible receivables are credited to:
A.
B.
C.
D.
19.  Writing off an uncollectible account under the allowance method requires a debit to:
A.
B.
C.
D.
20.  The percentage-of-sales basis of estimating uncollectibles:
A.
B.
C.
D.
21.  The percentage-of-receivables basis of estimating uncollectibles:
A.
B.
C.
D.
22.  The direct write-off method:
A.
B.
C.
D.
23.  In recording the sale of accounts receivalbe, the commission charged by a factor is recorded as:
A.
B.
C.
D.
24.  Sales resulting from the use of Visa and MasterCard credit cards are considered:
A.
B.
C.
D.
25.  The maturity date of a 60-day note dated April 12 is:
A.
B.
C.
D.
26.  The interest rate specified in a note is for a:
A.
B.
C.
D.
27.  For an interest-bearing note, the amount due at maturity is the:
A.
B.
C.
D.
28.  The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to:
A.
B.
C.
D.
29.  The accounts receivable turnover ratio is computed by dividing:
A.
B.
C.
D.
30.  The average collection period in terms of days is calculated:
A.
B.
C.
D.
31.  Depreciation is a process of:
A.
B.
C.
D.
32.  When there is a change in estimated depreciation:
A.
B.
C.
D.
33.  Additions to plant assets are:
A.
B.
C.
D.
34.  Which of the following statements is false?
A.
B.
C.
D.
35.  Indicate which of the following statements is true.
A.
B.
C.
D.
36.  In exchange of assets in which the exchange has commercial substance:
A.
B.
C.
D.
37.  The cost of land includes closing costs such as title and attorney's fees.
A.
B.
38.  The cost of equipment consists of the cash purchase price, freight charges, motor vehicle licenses and accident insurance on company vehicle.
A.
B.
39.  Recognizing depreciation on an asset results in an accumulation of cash for replacement of the asset.
A.
B.
40.  The units-of-activity method can be used for airplanes, buildings, and furniture.
A.
B.
41.  The declining-balance method is considered an accelerated-depreciation method.
A.
B.
42.  The Internal Revenue Service (IRS) requires the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements.
A.
B.
43.  To determine the revised depreciation expense, the company computes the asset's depreciable cost at the time of the revision and divides it by the asset's remaining useful life.
A.
B.
44.  Companies generally use the units-of-activity method to compute depletion.
A.
B.
45.  Goodwill is the excess of cost over the fair market value of the net assets acquired.
A.
B.
46.  The gain or loss on exchange of plant assets is the differance between the fair market value and the cost of the asset given up.
A.
B.
47.  Plant assets decline in service potential over their useful lives except for:
A.
B.
C.
D.
48.  The cost of land includes all of the following except:
A.
B.
C.
D.
49.  Factors that affect the computation of depreciation include all of the following except:
A.
B.
C.
D.
50.  Depreciable cost is the:
A.
B.
C.
D.
51.  The depreciation method that produces a decreasing annual depreciation expense over an asset's useful life is the:
A.
B.
C.
D.
52.  The method that ignores salvage value in determining the amount of depreciation is the:
A.
B.
C.
D.
53.  When a change in estimated useful life is required, the company makes the change in:
A.
B.
C.
D.
54.  Ordinary repairs expenditures to maintain the operating efficiency of a plant asset and are referred to as:
A.
B.
C.
D.
55.  A gain on sale of a plant asset occurs when the proceeds of the sale exceed the:
A.
B.
C.
D.
56.  Natural resources include all of the following except:
A.
B.
C.
D.
57.  Companies amortize the cost of a patent over its:
A.
B.
C.
D.
58.  All of the following are intangible assets except:
A.
B.
C.
D.
59.  The asset turnover ratio is computed by dividing:
A.
B.
C.
D.
60.  In exchanges of plant assets that have commercial substance:
A.
B.
C.
D.
61.  In an exchange of plant assets that has commercial substance, a gain on disposal is:
A.
B.
C.
D.
62.  The time period for classifying a liablility as current is one year or the operating cycle, whichever is:
A.
B.
C.
D.
63.  To be classified as a current liability, a debt must be expected to be paid:
A.
B.
C.
D.
64.  Employer payroll taxes do not include:
A.
B.
C.
D.
65.  The term used for bonds that are unsecured is:
A.
B.
C.
D.
66.  Karson Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, this indicates that:
A.
B.
C.
D.
67.  Howard Corporation issued a 20-year mortgage note payable on January 1, 2011. At December 31, 2011, the unpaid principal balance will be reported as:
A.
B.
C.
D.
68.  The market price of a bond is dependent on:
A.
B.
C.
D.
69.  A current liability is a debt that the company reasonably expects to pay from existing current assets or through the creating of other current liabilities within on year or the operating cycle, whichever is longer
A.
B.
70.  Notes payable due for payment within one year of the balance sheet date are usually classified as current liabilities.
A.
B.
71.  Companies report any balance in an unearned revenue account as a current liability in the balance sheet.
A.
B.
72.  Current liabilities are usually listed in the order of maturity on the balance sheet.
A.
B.
73.  Solvency refers to the ability to pay maturing obligations and meet unexpected needs for cash.
A.
B.
74.  When a company remits sales taxes to the taxing agency, it debits Sales Taxes Expense and credits Cash.
A.
B.
75.  Every employer incurs liabilities relating to employees' salaries and wages.
A.
B.
76.  Both bond interest and dividends on stock are deductible for tax purposes.
A.
B.
77.  Bonds that mature at a single specified future date are referred to as term bonds.
A.
B.
78.  Bond interest payable is classified as a long-term liability on the balance sheet.
A.
B.
79.  A current liability is a debt the company reasonably expects to pay from existing current assets within:
A.
B.
C.
D.
80.  The amount of sales tax collected by a retailer is recorded as:
A.
B.
C.
D.
81.  All of the following are current liabilities except:
A.
B.
C.
D.
82.  Companies report current liabilities on the balance sheet in:
A.
B.
C.
D.
83.  Payroll taxes imposed on the employer include:
A.
B.
C.
D.
84.  The entry to record the payroll includes a:
A.
B.
C.
D.
85.  Payroll deductions include all of the following except:
A.
B.
C.
D.
86.  If Unearned Revenue is credited in a journal entry, the debit must have been to the:
A.
B.
C.
D.
87.  The sum of the individual checks the employmees will receive is recorded as:
A.
B.
C.
D.
88.  Employer payroll taxes include all of the following except:
A.
B.
C.
D.
89.  Bonds that mature in installments are referred to as:
A.
B.
C.
D.
90.  Amortizing a discount on bonds payable serves to:
A.
B.
C.
D.
91.  When using the effective-interest method of bond discount amortization, bond interest expense:
A.
B.
C.
D.
92.  When a company retires bonds before maturity, the gain or loss on redemption is the difference between the cash paid and the:
A.
B.
C.
D.
93.  The account Discount on Bonds Payable:
A.
B.
C.
D.
Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz