yes i have some more....my deadline is 09/10/2012
Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. A repair that extends the useful life of an asset would be considered a/an
A. extraordinary repair.
B. capital expense.
D. ordinary repair.
2. 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
3. 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
4. If a $6,000, 10%, 10-year bond was issued at 104 on October 1, 2011, how much interest will accrue on
December 31 if interest payments are made annually?
5. If the amount extracted from a coal mine was different every year for four years, you would
A. use the same depletion expense rate per unit each year.
B. recompute the depletion expense rate per unit each year.
C. debit depletion expense for the same amount each year.
D. credit accumulated depletion— coal mine for the same amount each year.
6. A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a residual value of
$1,600. Its useful life is determined to be three years. Using double-declining balance depreciation, the
depreciation for 2012 to the nearest dollar will be
7. 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?
8. Which of the following marketable securities are reported at market value on the balance sheet date?
A. Available-for-sale and trading securities
B. Held-to-maturities securities
C. Trading securities
D. Available-for-sale securities
9. Which of the following would be considered a cash equivalent?
A. Time deposits
C. Money orders
10. 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
11. A warranty is an example of a/an _______ liability.
12. Which of the following would not be considered a contingent liability?
A. Mortgage payable
B. Pending legal action
C. Potential fines from the EPA
D. Cosigning a loan
13. 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
14. 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 handling cash receipts passes the receipts to someone who enters them into accounts receivable.
D. The person who handles accounts receivable wouldn't write off accounts as uncollectable.
15. Use the _______ principle to estimate warranty liabilities.
16. 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)
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
E18. 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 "other intangibles" on the balance sheet.
D. listed as "long-term assets" on the balance sheet.
19. Which of the following would not be a liability according to FASB's definition of a liability?
A. An obligation that's estimated in amount
B. The signing of a three-year employment contract at a fixed annual salary
C. A note payable with no specified maturity date
D. An obligation to provide goods or services in the future
20. Taylor Company has given you the following information from its aging of accounts receivable. The
current amount in the allowance for doubtful accounts is a $958 credit.
Using this information, what is the amount of the journal entry to record the allowance for doubtful
Current $24,400 2% uncollectible
31–60 days 7,350 8% uncollectible
61–90 days 3,380 15% uncollectible
91 and up 1,220 30% uncollectible
D. $991nd of. Which of the following