Details of this Paper

The Value of Money mcq test bank

Description

solution


Question

Question;1. 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. $5,067;B. $4,250;C. $7,159;D. $5,525;2. 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. $7,159;B. $5,067;C. $4,250;D. $5,525;3. Which of the following is not a benefit to extending;credit to customers?;A. Wider range of customers;B. Increased profits;C. Increased revenues;D. Bad-debt expenses;4. Ryan Corporation made a basket purchase of three items.;Item A was appraised at $35,000, item B was appraised at $55,000, and item C;was appraised at $60,000. The purchase price was $125,000. The amount at which;item C should be recorded (rounded to the nearest dollar) is;A. $72,000.;B. $83,300.;C. $29,167.;D. $50,000.;5. Which of the following marketable securities are reported;at market value on the balance sheet date?;A. Held-to-maturities securities;B. Available-for-sale securities;C. Trading securities;D. Available-for-sale and trading securities;6. Brandon Corporation purchased a vein of mineral ore for;$3,250,000. It is estimated that 15,000,000 tons of ore are available to be;extracted. The salvage value is determined to be $400,000. The estimation;depletion expense for this year's extraction of 1,760,000 tons of ore (rounded;to the nearest dollar) is;A. $428,267.;B. $381,333.;C. $334,400.;D. $400,000.;7. Cash equivalents are;A. not liquid and carry high risk.;B. very liquid and carry little risk.;C. not liquid and carry little risk.;D. very liquid and carry high risk.;8. 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. +$810.;C. ?$710.;D. +$760.;9. 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. $119.84.;B. $2,943.00.;C. $2,819.84.;D. $2,821.50.;10. Which marketable securities are reported at cost on the;balance sheet date?;A. Held-to-maturity securities;B. Available-for-sale securities;C. Trading and held-to-maturity securities;D. Trading securities;11. 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. 78.6%.;B. 127.3%.;C. 70.2%.;D. 239.3%.;12. 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. $1,605.00.;B. $20.13.;C. $1,520.13.;D. $1,584,88.;13. Margaret is a customer of Tammy Company. The company;wrote off her account of $1,200 on August15. On October 12, she sent in a;payment of $560. What will Tammy Company record first to reinstate;her account?;A. Debit Cash, credit Accounts Receivable/Margaret.;B. Debit Uncollectible Accounts Expense, credit Accounts;Receivable/Margaret.;C. Debit Accounts Receivable/Margaret, credit Allowance for;Doubtful Accounts.;D. Debit Allowance for Doubtful Accounts, credit Accounts;Receivable/Margaret.;14. Nick Company has cash of $33,000, net accounts;receivable of $41,000, short-term investments of $15,000, and inventory of;$25,000. It also has $30,000 in current liabilities and $50,000 in long-term;liabilities. The quick ratio for Nick Company is;A. 3.80.;B. 2.97.;C. 1.78.;D. 3.30.;15. Rick Company has cash of $143,000, net accounts;receivable of $89,000, short-term investments of $35,000, and prepaid expenses;of $40,000. It also has $50,000 in current liabilities and $80,000 in longterm;liabilities. The quick ratio for Rick Company is;A. 3.34.;B. 4.64.;C. 6.14.;D. 5.34.;16. Research and development costs (R&D) are generally;A. listed as "other intangibles" on the balance;sheet.;B. listed as "long-term assets" on the balance;sheet.;C. expensed and become part of the income statement.;D. listed as "current assets" on the balance;sheet.;17. Meranda Corporation purchases a machine for $125,000. It;has an estimated salvage value of $10,000 and is expected to produce 50,000;units in its lifetime. During the first year of operation, it produced 14,500;units. To the nearest dollar, the depreciation for the first year under the;units of production method;will be;A. $31,250.;B. $35,500.;C. $33,350.;D. $36,250.;18. A patent has amortization this year of $2,300. The;journal entry would be;A. debit Amortization Expense - Patent, $2,300, credit;Accumulated Depreciation - Patent, $2,300.;B. debit Amortization Expense - Patent, $2,300, credit;Patent, $2,300.;C. debit Accumulated Amortization - Patent, $2,300, credit;Patent, $2,300.;D. debit Accumulated Amortization - Patent, $2,300, credit;Amortization Expense - Patent, $2,300.;19. By not accruing warranty expense;A. reported liabilities will be overstated, and net income;will be understated.;B. reported liabilities will be understated, and net income;will be overstated.;C. reported expenses will be understated, and net income;will be understated.;D. reported expenses will be overstated, and reported;liabilities will be understated.;20. Ryan Corporation made a basket purchase of three items.;Item A was appraised at $35,000, item B was appraised at $55,000, and item C;was appraised at $60,000. The purchase price was $125,000. The amount at which;item B should be recorded is;A. ($55,000/$150,000) ? $125,000.;B. ($55,000/$95,000) ? $150,000.;C. ($55,000/$125,000) ? $150,000.;D. ($55,000/$95,000) ? $125,000.

 

Paper#42285 | Written in 18-Jul-2015

Price : $22
SiteLock