Question 1 Cost allocation of an intangible asset is referred to as;amortization.;depreciation.;accretion.;capitalization.;Question 2 All of the following statements are false regarding depreciation except;depreciation is an asset valuation process.;depreciation does not apply to land improvements.;recognizing depreciation results in the accumulation of cash for asset replacement.;depreciation does not apply to land.;Question 3 Short-term notes receivable;have a related allowance account called Allowance for Doubtful Notes Receivable.;are reported at their gross realizable value.;use the same estimations and computations as accounts receivable to determine cash realizable value.;present the same valuation problems as long-term notes receivables.;Question 4 The matching rule relates to credit losses by stating that bad debt expense should be recorded;in the same period as allowed for tax purposes.;in the period of the sale.;for an exact amount.;in the period of the loss.;Question 5 A note receivable is a negotiable instrument which;eliminates the need for a bad debts allowance.;can be transferred to another party by endorsement.;takes the place of checks in a business firm.;can only be collected by a bank.;Question 6 Allowing only the treasurer to sign checks is an example of;documentation procedures.;separation of duties.;other controls.;establishment of responsibility.;Question 7 All of the following requirements about internal controls were enacted under the Sarbanes-Oxley Act of 2002 except;independent outside auditors must attest to the level of internal control.;companies must develop sound internal controls over financial reporting.;companies must continually assess the functionality of internal controls.;independent outside auditors must eliminate redundant internal control.;Question 8 Each of the following is a feature of internal control except;an extensive marketing plan.;bonding of employees.;separation of duties.;recording of all transactions.;Question 9 Equipment with a cost of $256,000 has an estimated salvage value of $24,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?;$64,000.;$70,000.;$66,000.;$58,000.;Question 10 Mitchell Corporation bought equipment on January 1, 2012.The equipment cost $120,000 and had an expected salvage value of $20,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is;$120,000.;$100,000.;$20,000.;$16,667.
Paper#77544 | Written in 18-Jul-2015Price : $22