1 if the amount extracted from a coal mine was different every year for four years y 646534

Aug 30, 2021 | Uncategorized

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.
If
the amount
extracted
from
a
coal
mine
was
different
every
year
for four
years, you
would

  1. recompute the depletion expense rate per unit each year.
  2. use the same depletion expense rate per unit each year.
  3. credit accumulated depletion coal mine for the same amount each year
  4. debit depletion expense for the same amount each year_

2. Which
of the
following
would
not be a
liability
according
to
FASB’s
definition
of
a
liability?

  1. A note payable with no specified maturity date
  2. The signing of a three year etuployment contract at a fixed annual salary
  3. An obligation that’s estimated in amount
  4. An obligation to provide goods or services in the future
3. A warranty is an example of alan

  1. known
  2. settled
  3. estimated
  4. contingent
 liability.

4.
A company
receives
a note payable
for
$3,500
at
9%
for
45
days. How
much
interest
(to
the nearest
cent)
will
the customer
owe
using a
360 clay
year?

  1. $315.00
  2. $35,138
  3. $3938
  4. $38.84

5.
Which
of
the
following
would
not
be
considered
a
contingent liabilit •’

  1. Pending legal action
  2. Mortgage payable
  3. Potential fines from the EPA
  4. C’ostgaing a loan

6. A repair that extends the useful life of an asset would be considered aeon

  1. orarrizry repair.
  2. extraordinary repair_
  3. capital expense.
  4. betterment.

7.
Cash equivalents are

  1. vet’ liquid and carry little risk
  2. very liquid and carry high risk
  3. not liquid and carry little risk
  4. not liquid and carry high. risk

8.
Research and
development
costs (R&D)
are
generally

  1. listed as “long term assets” on the balance sheet.
  2. listed as “current assets” on the balance sheet
  3. listed as ‘other intangibles” on the balance sheet.
  4. expensed and become part of the income statement.

9.
A patent has
amortization
this year of
$2.,300.
The
journal
entry would be

  1. debit Accumulated Amortization Patent, $2,300; credit Patent $2.,300.
  2. debit Amortization Expense Patent, $2,300; credit Patent $2,300.
  3. debit Amortization Expense Patent, $2,300 , credit Accumulated Depreciation Patent, $2,300.
  4. debit Accumulated Amortization Patent $2,300; credit Amortization Expense Patent, $2,3011

10.
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

  1. $5,200.
  2. $9,331
  3. $10,400.
  4. $4,667.

11.
A
$400,000
issue
of
bonds
that sold for $363,000
matures
on
August
1,
2015. The journal entry
to
record
the
payment
of
the
bond on
the
maturity date is

  1. debit cash, $353,000; credit bonds payable, $363,000.
  2. debit cash, $400,000; credit bonds payable, $400.000.
  3. debit bonds payable, $400,000; credit cash, $400.000.
  4. debit bonds payable, $353,0130; credit cash, 5363.000.

12. 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

  1. 1273%.
  2. 78_6%_
  3. 70_2%.

I1.2.393%_

13.
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

  1. $36250_
  2. $31,2.50_
  3. $33,350_
  4. $35.500_

14.
Which
of
the
folio van. g would
indicate
poor
internal control
over accounts
receivable?

  1. The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.
  2. The mailroom employees open the mail and give the cash receipts to another employee.
  3. The same person handling cash receipts also records the accounts receivable transactions.
  4. The person who handles accounts receivable wouldn’t write off accounts as uncollectable.

15.
Which
of
the
following is
not
a
benefit
to extending credit
to
customers?

  1. Increased revenues
  2. Wider range of customers
  3. Bad debt expenses
  4. Increased profits

16.
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

  1. $83,300_
  2. $29,167_
  3. $72,000_
  4. $50.000.

17.
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

  1. 47’60_
  2. 4710_
  3. +$310_
  4. $710.

18. Which of the following marketable securities are reported_ at market value on the balance
sheet
date?

  1. Available for securities
  2. Held to raaiurities securities
  3. Available for sale and trading securities
  4. Trading securities

19. 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)

  1. $1,520.13.
  2. $2043_
  3. $1,584,88.
  4. $1,605.00.

20. Taylor
Company has given
you
the
following
information
from
its
a.ging.
of accounts receivable_ The
current
amount
in. the allowance for
doubtfirl accounts
is
a $958
credit

Current $24,400 2% uncollectible
31 60 days 7350 8% uncollectible
6140 days 3,380 15% nnoollectible
91 and up 1220 30% uncollectible

Using tlui MformatiorL
what
is
the
amount
of
the
journal
entry
to
record the allowance for doubtful
accounn?

  1. $541
  2. $2.457
  3. $991
  4. $1.949

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