Day 14 - 70% FAIL Flashcards
Gains and losses from the sale of Treasury stock are recorded:
In APIC
Never on the income Stmt
MCQ-05656
A bond was issued at a discount and then redeemed at a premium, this results in a?
Loss
MCQ-01505
A machine with a 5-year estimated useful life and an estimated 10% salvage value was acquired on Jan 1, year 1. On Dec 31, year 4 the A/D, using the same of digits method would be:
(Original Cost less Salvage Value) × (14/15)
MCQ-00385
ABC prepares the Stmt of Cash Flow using the indirect method. ABC’s Unamortized bond discount account decreased $25k during the year. How should this be reported on the Stmt of Cash Flows?
As an addition to net income in the operating activities section
MCQ-05202
Under the allowance method, the entry to record the write off of an uncollectible account:
Affects neither net income nor working Capital
Allowance Method JE
DR - Allowance for Uncollectible AR
CR - AR
Under Direct Write off working Capital is affected
JE:
DR - Bad Debt Exp
CR - AR
MCQ-00271
Under the allowance method, the entry to record the write off of an uncollectible account:
Affects neither net income nor working Capital
Allowance Method JE
DR - Allowance for Uncollectible AR
CR - AR
Under Direct Write off working Capital is affected
JE:
DR - Bad Debt Exp
CR - AR
MCQ-00271
