GB518 101-Reporting and Analyzing Receivables and Long-Term Assets
by | Mar 18, 2020 | Uncategorized
Unit 4 : Unit 4: Reporting and Analyzing Receivables and Long-Term Assets – Quiz
Unit Quiz due less than an hour, Please help!
Question 1. 1.A promissory note received from a customer in exchange for an account receivable:(Points : 2) |
Is a cash equivalent for the recipient Is an account receivable for the recipient Is a note receivable for the recipient Is a short-term investment for the recipient Is a note payable for the recipient |
Question 2. 2.A credit sale of $2,500 to a customer would result in:(Points : 2) |
A debit to the Accounts Receivable account in the general ledger and a debit to the customer’s account in the accounts receivable ledger A credit to the Accounts Receivable account in the general ledger and a credit to the customer’s account in the accounts receivable ledger A debit to the Accounts Receivable account in the general ledger and a credit to the customer’s account in the accounts receivable ledger A credit to the Accounts Receivable account in the general ledger and a debit to the customer’s account in the accounts receivable ledger A credit to Sales and a credit to the customer’s account in the accounts receivable ledger |
Question 3. 3.Amortization:(Points : 2) |
Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life Is the process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use Is the process of allocating the cost of natural resources to periods when they are consumed Is an accelerated form of expensing an asset’s cost Is the same as depletion |
Question 4. 4.A company had a bulldozer destroyed by fire. The bulldozer originally cost $125,000. The accumulated depreciation on it was $60,000. The proceeds from the insurance company were $90,000. The company should recognize:(Points : 2) |
A loss of $25,000 A gain of $25,000 A loss of $65,000 A gain of $65,000 A gain of $90,000 |
Question 5. 5.A company has net sales of $870,000 and average accounts receivable of $174,000. What is its accounts receivable turnover for the period?(Points : 2) |
0.20 5.00 20.0 73.0 1,825 |
Question 6. 6.A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is:(Points : 2) |
$0.75 $0.625 $0.875 $6.00 $8.00 |
Question 7. 7.The person who signs a note receivable and promises to pay the principal and interest is the:(Points : 2) |
Maker Payee Holder Receiver Owner |
Question 8. 8.A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company’s total asset turnover is equal to:(Points : 2) |
0.82 0.90 1.09 1.11 1.26 |
Question 9. 9.The interest accrued on $3,600 at 7% for 60 days is:(Points : 2) |
$36 $42 $252 $180 $420 |
Question 10. 10.A copyright:(Points : 2) |
Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 17 years Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 50 years Is the amount by which the value of a company exceeds the fair market value of a company’s net assets if purchased separately Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 17 years |
Question 11. 11.On August 1, 2010, Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965. The note is due in 90 days and has an interest rate of 8%. What would be the total amount collected at the maturity date?(Points : 2) |
$123,965.00 $2,479.30 $126,444.30 $121,485.70 $133,882.20 |
Question 12. 12.A depreciation method that produces larger depreciation expense during the early years of an asset’s life and smaller expense in the later years is a(n):(Points : 2) |
Accelerated depreciation method Book value depreciation method Straight-line depreciation method Units-of-production depreciation method Unrealized depreciation method |
Question 13. 13.Plant assets are:(Points : 2) |
Tangible assets used in the operation of a business that have a useful life of more than one accounting period Current assets Held for sale Intangible assets used in the operations of a business that have a useful life of more than one accounting period Tangible assets used in the operation of business that have a useful life of less than one accounting period |
Question 14. 14.Depletion:(Points : 2) |
Is the process of allocating the cost of natural resources to periods in which they are consumed Is also called depreciation Is also called amortization Is an unrealized expense reported in equity Is the process of allocating the cost of intangibles to periods in which they are used |
Question 15. 15.Revenue expenditures:(Points : 2) |
Are additional costs of plant assets that do not materially increase the asset’s life or its productive capabilities Are known as balance sheet expenditures Extend the asset’s useful life Substantially benefit future periods Are debited to asset accounts |
Question 16. 16.Extraordinary repairs:(Points : 2) |
Are revenue expenditures Extend an asset’s useful life beyond its original estimate Are credited to accumulated depreciation Are additional costs of plant assets that do not materially increase the asset’s life Are expensed as incurred |
Question 17. 17.A leasehold:(Points : 2) |
Is a short-term rental agreement Is the same as a patent Are the rights granted to the lessee by the lessor of a lease Is recorded as rent expense Is an investment asset |
Question 18. 18.Depreciation:(Points : 2) |
Measures the decline in market value of an asset Measures physical deterioration of an asset Is the process of allocating to expense the cost of a plant asset Is an outflow of cash from the use of a plant asset Is applied to land |
Question 19. 19.The useful life of a plant asset is:(Points : 2) |
The length of time it is used productively in a company’s operations Never related to its physical life Its productive life, but not to exceed one year Determined by the FASB Determined by law |
Question 20. 20.The buyer who pays cash for an account receivable referred to as a:(Points : 2) |
Payor Pledgor Factor Payee Pledgee |
Question 21. 21.An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period of the sales and (2) reports accounts receivable at the amount of cash to be collected is the:(Points : 2) |
Allowance method of accounting for bad debts Aging of notes receivable Adjustment method for uncollectible debts Direct write-off method of accounting for bad debts Cash basis method of accounting for bad debts |
Question 22. 22.A company’s annual accounting period ends on September 30. During the current year a depreciable asset which cost $16,000 was purchased on January 1. The asset has a $2,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a 4-year life. What is the total depreciation expense for the current year?(Points : 2) |
$4,000 $3,000 $3,500 $2,625 $875 |
Question 23. 23.A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:(Points : 2) |
Direct write-off method Aging of accounts receivable method Percentage of sales method Aging of investments method Percent of accounts receivable method |
Question 24. 24.Many companies use accelerated depreciation in computing taxable income because:(Points : 2) |
It is required by the tax rules It is required by financial reporting rules It postpones tax payments until later years and the company can use the resources now to earn additional income before payment is due Using it causes a company to use higher income in the early years of the asset’s useful life The results are identical to straight-line depreciation |
Question 25. 25.Failure by a promissory note’s maker to pay the amount due at maturity is known as:(Points : 2) |
Protesting a note Closing a note Dishonoring a note Discounting a note Depreciating a note |
|
Why work with us?
Authenticity:
All of our papers are authentic, as each paper of ours is composed according to your unique requirements.
Confidentiality:
We value you data. Our company is extremely efficient in guarding the privacy of our clients.
100% Money Back Guarantee:
In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund.
24/7 Support:
Our team members are available via email, live chat, and phone.
Revision Policy:
You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.
How the Platform Works
- Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
- Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
- In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
- To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
- The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.