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Accounting > Final Exam 101 -- MyAccountingLab Quizzes 5-8 > Flashcards

Final Exam 101 -- MyAccountingLab Quizzes 5-8 Flashcards

1
Q

Under the Allowance Method for Uncollectible receivables, the entry to record uncillectible-account expense has what effect on the financial statements?

A

decrease net income

decrease assets

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2
Q

see question #2 chapter 5 quiz

A

true

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3
Q

see question #3 chapter 5 quiz

A

true

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4
Q

see question #4 chapter 5 quiz

A

true

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5
Q

see question #5 chapter 5 quiz

A

true

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6
Q

see question #6 chapter 5 quiz

A

true

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7
Q

see question #7 chapter 5 quiz

A

true

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8
Q

On August 1, 2012, Azores, Inc. sold equipment and accepted a six-month, 11%, $30,000 note receivable. Azores’ year-end is December 31. If Azores fails to make an adjusting entry for the accrued interest,

A

net income will be understated

assets will be understated

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9
Q

see question #9 chapter 5 quiz

A

true

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10
Q

A company sells on credit terms of 2/10, n/30 and has days’ sales in accounts receivable of 30 days. Its days’ sales in receivables is

A

about right

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11
Q

see question #1 chapter 6 quiz

A

true

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12
Q

see question #2 chapter 6 quiz

A

true

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13
Q

see question #3 chapter 6 quiz

A

true

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14
Q

The word “market” as used in “the lower or cost or market” generally means

A

replacement cost

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15
Q

see question #5 chapter 6 quiz

A

true

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16
Q

see question #6 chapter 6 quiz

A

true

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17
Q

When does the cost of inventory become an expense?

A

when inventory is delivered to a customer

18
Q

The sum of ending inventory and cost of goods sold is

A

goods available

19
Q

In a period of rising prices

A

gross profit under FIFO will be higher than under LIFO

20
Q

An error understated REX Corporation’s December 31, 2012, ending inventory by $26,000. What effect will this error have on net income for 2013?

A

overstate

21
Q

see question #1 chapter 7 quiz

A

true

22
Q

see question #2 chapter 7 quiz

A

true

23
Q

Depreciation is a process of allocating the cost of an asset to expense over its useful life.

A

true

24
Q

Obsolescence as well as physical wear and tear should be considered when determining the period over which an asset should be depreciated

A

true

25
Q

A major objective of depreciation accounting is to allocate the cost of an using an asset against the revenues it helps to generate

A

true

26
Q

Janes’ Beauty uses the double-declining method for depreciation on its computers. Which item is not needed to compute depreciation for the first year?

A

estimated residual value

27
Q

see question #5 chapter 7 quiz

A

true

28
Q

see question #6 chapter 7 quiz

A

true

29
Q

Which of the following costs are reported on a company’s income statement and balance sheet

see question #7 chapter 7 quiz

A

Income Statement Balance Sheet

Cost of Goods Sold Accumulated Depreciation

30
Q

Which of the following items should be accounted for as a capital expenditure?

A

taxes paid in conjunction with the purchase of office equipment

31
Q

Kline Company failed to record deprecation of equipment. How does this omission affect Kline’s financial statements?

A

net income is overstated

assets are overstated

32
Q

A capital expenditure

A

adds to an asset

33
Q

What is needed to compute the present value of an investment?

A

the interest rate
the amount of the receipt
the length of time between the investment and future receipt

(NOT - the rate of inflation - NOT)

34
Q

Majestic holds an investment in Cromwell bonds that pay interest each October 31. Majestic BALANCE SHEET at December 31 should report

A

interest receivable

35
Q

The starting point in accounting for all investments is

A

cost

36
Q

see question #4 chapter 8 quiz

A

true

37
Q

see question #5 chapter 8 quiz

A

true

38
Q

see question #6 chapter 8 quiz

A

true

39
Q

see question #7 chapter 8 quiz

A

true

40
Q

consolidation accounting

A

combines the accounts of the parent company and those of the subsidiary companies

41
Q

see question #9 chapter 8 quiz

A

true

42
Q

Mac’s investment in less than 2% of Mobil’s stock, which Mac expects to hold for three years and then sell, is what type of investment?

A

Available-for-sale

Accounting (7 decks)

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