taken on Nov 8th

Question 1.1.To estimate the amount of its uncollectible accounts receivable, a company might: (Points : 2)

Question 2.2.On July 1, 2010, Siebens Enterprises loaned $20,000 to Tyler Company for one year at 8 percent interest. Under the terms of the promissory note, Tyler will repay the principal and pay one year’s interest on May 31, 2011. What would be the total amount of receivable related to this loan on Siebens’ December 31, 2010 balance sheet? (Points : 2)

Question 3.3.On January 1, 2010 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $30,000 and $500, respectively. During the year the company reported $75,000 of credit sales. There were $550 of receivables written-off as uncollectible in 2010. Cash collections of receivables amounted to $74,550. The company estimates that it will be unable to collect one percent (1%) of credit sales. The amount of uncollectible accounts expense recognized in the 2010 income statement will be: (Points : 2)

Question 4.4.The net realizable value of accounts receivable is calculated: (Points : 2)

Question 5.5.Bay Company began using the allowance method in 2010. On January 1, 2010, Bay had a $3,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2010, Bay provided $25,000 of service on account. The company collected $21,000 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account. The amount of cash flow from operating activities that would appear on the 2010 statement of cash flows is: (Points : 2)

Question 6.6.The amount of accounts receivable that is actually expected to be collected is known as: (Points : 2)

Question 7.7.The amount of accounts receivable that is actually expected to be collected is known as: (Points : 2)

Question 8.8.Accounts receivable turnover is computed by dividing: (Points : 2)

Question 9.9.On January 1, 2009, Ziskin Company spent $3,000 on an asset (equipment) to improve its quality. The asset had been purchased on January 1, 2006 for $14,000. The asset had a $2,000 salvage value and a 6-year life. Ziskin uses straight-line depreciation. What would be the amount of depreciation expense for 2009? (Points : 2)

Question 10.10.Which of the following measurements would not be affected by the choice of depreciation methods? (Points : 2)

Question 11.11.Rouse Company owned an asset that had cost $32,000. The company sold the asset on January 1, 2009 for $8,000. Accumulated depreciation on the day of sale amounted to $26,000. Based on this information, the sale would result in a(n): (Points : 2)

Question 12.12.Zabinski Co. paid $150,000 for a purchase that included land, building, and office furniture. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Land, $20,000, Building, $150,000, and Office furniture, $30,000. Based on this information the cost that would be allocated to the land is: (Points : 2)

Question 13.13.Which of the following terms is used to identify the process of expense recognition for buildings and equipment? (Points : 2)

Question 14.14.Johnson Company purchased a producing oil well for $5,000,000. The well was expected to produce 500,000 barrels of oil over its useful life. During 2009 the company extracted 120,000 barrels of oil. The oil was sold for $40 per barrel. Assuming that the company incurred $1,440,000 in operating expenses other than depletion during 2009, how much net income would Johnson report in 2009? (Points : 2)

Question 15.15.The Harlow Company purchased the Hampton Company for $600,000 cash. The fair market value of Hampton’s assets was $520,000 and the company had liabilities of $30,000. What amount of goodwill should Harlow record related to the purchase of Hampton Company? (Points : 2)

Question 16.16.The recognition of depletion expense acts to: (Points : 2)

Question 17.17.The recognition of depletion expense acts to: (Points : 2)

Question 18.18.Martin Company has no beginning inventory. Martin purchased 500 units of inventory that cost $5.00 each. At a later date the company purchased an additional 700 units of inventory that cost $6.00 each. Martin sold 900 units of inventory for $8.00. If Martin uses a FIFO cost flow method, the amount of gross margin appearing on the income statement will be: (Points : 2)

Question 19.19.GAAP requires a company to provide financial statement users with information about the accounting methods it has selected (including inventory cost flow methods) this is called the: (Points : 2)

Question 20.20.The inventory records for Freer reflected the following:

Jan 1 Beginning Inventory 300 units @ $2.10
Jan 12 First Purchase 400 units @ $2.40
Jan 21 Second Purchase 600 units @ $2.50
Jan 31 Sales 800 units @ $5.00

What was Freer’s gross margin for the month of January assuming a FIFO cost flow method? (Points : 2)