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accounting mcq quiz

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Question;2. Which of the following would not be considered a;contingent liability?;A. Potential fines from the EPA;B. Mortgage payable;C. Pending legal action;D. Cosigning a loan;3. Using a 365-day year, the maturity value of a 180-day;note for $2,700 at 9% annual interest is (rounded;to the nearest cent);A. $2,821.50.;B. $119.84.;C. $2,943.00.;D. $2,819.84.;4. Which of the following would be considered a cash;equivalent?;A. Currency;B. Time deposits;C. Checks;D. Money orders;5. Tammy Industries inadvertently debited a $5,000;betterment as an ordinary expense. Which of the;following will occur as a result of this mistake?;A. Net income will be overstated by $5,000.;B. The asset will be overstated by $5,000.;C. The asset will be understated by $5,000.;D. Retained earnings will be overstated by $5,000.;6. Which of the following would indicate poor internal;control over accounts receivable?;A. The person handling cash receipts passes the receipts to;someone who enters them into accounts receivable.;B. The mailroom employees open the mail and give the cash;receipts to another employee.;C. The same person handling cash receipts also records the;accounts receivable transactions.;D. The person who handles accounts receivable wouldn't write;off accounts as uncollectable.;7. A company receives a note payable for $3,500 at 9% for 45;days. How much interest (to the nearest;cent) will the customer owe using a 360-day year?;A. $354.38;B. $39.38;C. $38.84;D. $315.00;8. Jewell Company has current assets of $56,000, long-term;assets of $135,000, current liabilities of;$44,000, and long-term liabilities of $90,000. Jewell;Company's debt ratio is;A. 70.2%.;B. 78.6%.;C. 127.3%.;D. 239.3%.;9. Using a 360-day year, the maturity value of a 69-day note;for $1,500 at 7% annual interest is (rounded;to the nearest cent);A. $1,520.13.;B. $1,605.00.;C. $20.13.;D. $1,584,88.;10. Brandon Company completed an aging of its accounts;receivable and came up with an estimated;amount of $6,342. The credit sales for the period are $85,000.;The balance in the allowance for doubtful;accounts is a debit of $817. If Brandon uses 5% of credit;sales as its estimating uncollectible accounts, how;much will the credit be to the allowance for doubtful;accounts if Brandon uses the percent of credit sales as;its method of estimating uncollectible accounts?;A. $4,250;B. $5,067;C. $5,525;D. $7,159;11. Casey Company's bank statement shows a bank balance of;$43,267. The statement shows a bank;service charge of $50. Casey's book balance shows;outstanding checks of $5,288 and deposits in transit of;$9,325. The bank-side reconciliation would show cash of;A. $43,217.;B. $39,230.;C. $47,304.;D. $43,267.;12. By not accruing warranty expense;A. reported liabilities will be understated, and net income;will be overstated.;B. reported expenses will be understated, and net income;will be understated.;C. reported liabilities will be overstated, and net income;will be understated.;D. reported expenses will be overstated, and reported;liabilities will be understated.;13. Brandon Company completed an aging of its accounts;receivable and came up with an estimated;amount of $6,342. The credit sales for the period are;$85,000. The balance in the allowance for doubtful;accounts is a debit of $817. If Brandon uses 5% of credit;sales as its estimating uncollectable accounts;how much will the credit be to the allowance for doubtful;accounts if Brandon uses the estimate of aging;receivables as its method of estimating uncollectable;accounts?;A. $5,067;B. $7,159;C. $5,525;D. $4,250;14. Research and development costs (R&D) are generally;A. listed as "current assets" on the balance;sheet.;B. expensed and become part of the income statement.;C. listed as "long-term assets" on the balance;sheet.;D. listed as "other intangibles" on the balance;sheet.;15. A repair that extends the useful life of an asset would;be considered a/an;A. ordinary repair.;B. betterment.;C. extraordinary repair.;D. capital expense.;17. Casey Company's bank statement shows a bank balance of;$43,267. The statement shows a bank;service charge of $50 and a bank collection of $760 in Casey;Company's behalf. Casey's book balance should be adjusted by a total of;A. ?$710.;B. +$760.;C. +$710.;D. +$810.;18. A $400,000 issue of bonds that sold for $363,000 matures;on August 1, 2015. The journal entry to;End of exam;record the payment of the bond on the maturity date is;A. debit cash, $400,000, credit bonds payable, $400,000.;B. debit bonds payable, $400,000, credit cash, $400,000.;C. debit bonds payable, $363,000, credit cash, $363,000.;D. debit cash, $363,000, credit bonds payable, $363,000.

 

Paper#41607 | Written in 18-Jul-2015

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