FAR CHAPTER 2

Question 1

aggregate amount of estimated losses from uncollectible accounts receivable

Answer 1

allowance for bad debts

Question 2

represents goods that are held for sale by a business

Answer 2

inventory

Question 3

represents the cost of unused office and other supplies

Answer 3

prepaid supplies

Question 4

total amount of depreciation expenses recognized since the building acquired and made available for use

Answer 4

accumulated depreciation - building

Question 5

land, building, equipment

Answer 5

ppe plant property equipment, capital assets, fixed assets

Question 6

issuance of interest bearing receivables

Answer 6

interest income

Question 7

value of inventories sold during the accounting period

Answer 7

cogs (cost of goods sold)

Question 8

represents the salaries earned by employees for the services they have rendered

Answer 8

salaries expense

Question 9

present rentals that have been used up during accounting period

Answer 9

rent expense

Question 10

represent the cost of utilities

Answer 10

utilities expense

Question 11

cost of supplies been used during the period

Answer 11

supplies expense

Question 12

amount of estimated losses from uncollectible accounts

Answer 12

bad debt expense (doubtful accounts expense)

Question 13

the portion of the cost of a depreciable asset

Answer 13

depreciation expense

Question 14

various small expenditures which do not warrant separate presentation

Answer 14

miscellaneous expense