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accounting mcq - Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August

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Question;1. 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 reinstateher account?A. Debit Allowance for Doubtful Accounts, credit Accounts Receivable/Margaret.B. Debit Uncollectible Accounts Expense, credit Accounts Receivable/Margaret.C. Debit Cash, credit Accounts Receivable/Margaret.D. Debit Accounts Receivable/Margaret, credit Allowance for Doubtful Accounts.2. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000, item B wasappraised at $55,000, and item C was appraised at $60,000. The purchase price was $125,000. Theamount at which item B should be recorded isA. ($55,000/$150,000) ? $125,000.B. ($55,000/$95,000) ? $150,000.C. ($55,000/$95,000) ? $125,000.D. ($55,000/$125,000) ? $150,000.3. A $400,000 issue of bonds that sold for $363,000 matures on August 1, 2015. The journal entry torecord the payment of the bond on the maturity date isA. debit bonds payable, $400,000, credit cash, $400,000.B. debit cash, $400,000, credit bonds payable, $400,000.C. debit cash, $363,000, credit bonds payable, $363,000.D. debit bonds payable, $363,000, credit cash, $363,0004. By not accruing warranty expense,A. reported liabilities will be overstated, and net income will be understated.B. reported expenses will be overstated, and reported liabilities will be understated.C. reported expenses will be understated, and net income will be understated.D. reported liabilities will be understated, and net income will be overstated.5. Which of the following would not be a liability according to FASB's definition of a liability?A. An obligation to provide goods or services in the futureB. The signing of a three-year employment contract at a fixed annual salaryC. An obligation that's estimated in amountD. A note payable with no specified maturity dateM6. 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 isA. 70.2%.B. 78.6%.C. 127.3%.D. 239.3%.My answer:7. Casey Company's bank statement shows a bank balance of $43,267. The statement shows a bankservice 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 ofA. $39,230.B. $47,304.C. $43,267.D. $43,217.My answ8. Which of the following would be considered a contingent liability?A. Sales tax obligationB. Mortgage obligationC. Accounts payable obligationD. Pending legal action9. A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $500. Thejournal entry to record this transaction isA. debit Cash for $500, debit Accumulated Depreciation - Truck for $50,000, debit Loss on Disposal for $5,500, and creditTruck for $56,000.B. debit Loss on Disposal $6,000, debit Accumulated Depreciation - Truck for $50,000, and credit Truck for $56,000.C. debit Cash for $500, debit Loss on Disposal for $55,500, and credit Truck for $56,000.D. debit Cash for $500, debit Truck for $50,000, debit Loss on Disposal for $5,500, and credit Accumulated Depreciation -Truck for $56,000.10. 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-termliabilities. The quick ratio for Nick Company isA. 3.30.B. 1.78.C. 3.80.D. 2.97.My11. 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. $2,821.50.C. $2,943.00.D. $2,819.84.12. Cash equivalents areA. very liquid and carry little risk.B. not liquid and carry high risk.C. not liquid and carry little risk.D. very liquid and carry high risk.13. Which marketable securities are reported at cost on the balance sheet date?A. Held-to-maturity securitiesB. Trading securitiesC. Available-for-sale securitiesD. Trading and held-to-maturity securitiesMy 14. If the amount extracted from a coal mine was different every year for four years, you wouldA. credit accumulated depletion - coal mine for the same amount each year.B. recompute the depletion expense rate per unit each year.C. use the same depletion expense rate per unit each year.D. debit depletion expense for the same amount each year.My15. 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 longtermliabilities. The quick ratio for Rick Company isA. 3.34.B. 5.34.C. 4.64.D. 6.14.16. Tammy Industries inadvertently debited a $5,000 betterment as an ordinary expense. Which of thefollowing will occur as a result of this mistake?A. Net income will be overstated by $5,000.B. Retained earnings will be overstated by $5,000.C. The asset will be overstated by $5,000.D. The asset will be understated by $5,000.M17. Which of the following would indicate poor internal control over accounts receivable?A. The same person handling cash receipts also records the accounts receivable transactions.B. The mailroom employees open the mail and give the cash receipts to another employee.C. The person who handles accounts receivable wouldn't write off accounts as uncollectable.D. The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.My18. A company receives a note payable for $3,500 at 9% for 45 days. How much interest (to the nearestEnd of examcent) will the customer owe using a 360-day year?A. $315.00B. $39.38C. $354.38D. $38.84My 19. Casey Company's bank statement shows a bank balance of $43,267. The statement shows a bankservice charge of $50 and a bank collection of $760 in Casey Company's behalf. Casey's book balanceshould be adjusted by a total ofA. +$760.B. +$710.C. +$810.D. ?$710.My 20. Which of the following would not be considered a contingent liability?A. Mortgage payableB. Cosigning a loanC. Potential fines from the EPAMy

 

Paper#44025 | Written in 18-Jul-2015

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