Question 1

Allowance for Doubtful Accounts is reported in the:

Accepted Answer

A)  balance sheet as a contra asset. 
B)  balance sheet as a contra liability account. 
C)  income statement under other expenses and losses. 
D)  income statement under other revenues and gains. 
A)  balance sheet as a contra asset. 
B)  balance sheet as a contra liability account. 
C)  income statement under other expenses and losses. 
D)  income statement under other revenues and gains.

Question 2

The cost of intangible assets should be:

Accepted Answer

A)  amortized over the assets' estimated useful life, or its legal life, whichever is shorter. 
B)  amortized over a period not exceeding 5 years. 
C)  amortized over the assets' estimated useful life. 
D)  charged to an expense account at acquisition. 
A)  amortized over the assets' estimated useful life, or its legal life, whichever is shorter. 
B)  amortized over a period not exceeding 5 years. 
C)  amortized over the assets' estimated useful life. 
D)  charged to an expense account at acquisition.

Question 3

Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:

Accepted Answer

A)  loss on disposal of $40,000. 
B)  gain on disposal of $40,000. 
C)  loss on disposal of $10,000. 
D)  gain on disposal of $10,000. 
A)  loss on disposal of $40,000. 
B)  gain on disposal of $40,000. 
C)  loss on disposal of $10,000. 
D)  gain on disposal of $10,000.

Question 4

The building should be recorded on Poin's books at:

Accepted Answer

A)  $1,344,000. 
B)  $1,519,000. 
C)  $1,130,000. 
D)  $1,464,000. 
A)  $1,344,000. 
B)  $1,519,000. 
C)  $1,130,000. 
D)  $1,464,000.

Question 5

The Discount on Bonds Payable account:

Accepted Answer

A)  is a contra account to Bonds Payable. 
B)  will cause interest expense to be less than cash interest payable. 
C)  is increased over the life of the bond until it equals the bond's face value. 
D)  is an adjunct account to Bonds Payable. 
A)  is a contra account to Bonds Payable. 
B)  will cause interest expense to be less than cash interest payable. 
C)  is increased over the life of the bond until it equals the bond's face value. 
D)  is an adjunct account to Bonds Payable.

Question 6

Which of the following pairs of terms in the area of financial statement analysis are synonymous?

Accepted Answer

A)  Ratio - Trend 
B)  Horizontal - Trend 
C)  Vertical - Ratio 
D)  Horizontal - Ratio 
A)  Ratio - Trend 
B)  Horizontal - Trend 
C)  Vertical - Ratio 
D)  Horizontal - Ratio

Question 7

If the market rate of interest is lower than the stated rate, bonds will sell at an amount:

Accepted Answer

A)  equal to face value. 
B)  not determinable from the given information. 
C)  lower than face value. 
D)  higher than face value. 
A)  equal to face value. 
B)  not determinable from the given information. 
C)  lower than face value. 
D)  higher than face value.

Question 8

Which of the following statements is true?

Accepted Answer

A)  Trading securities are debt securities that the investor has the intent to hold to maturity. 
B)  Trading securities are securities bought and held primarily for sale in the near term. 
C)  Trading securities are securities that may be sold in the future. 
D)  Trading securities are reported at cost in the balance sheet. 
A)  Trading securities are debt securities that the investor has the intent to hold to maturity. 
B)  Trading securities are securities bought and held primarily for sale in the near term. 
C)  Trading securities are securities that may be sold in the future. 
D)  Trading securities are reported at cost in the balance sheet.

Question 9

One of the two constraints in accounting is:

Accepted Answer

A)  comparability. 
B)  materiality. 
C)  faithful representation. 
D)  relevance. 
A)  comparability. 
B)  materiality. 
C)  faithful representation. 
D)  relevance.

Question 10

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:

Accepted Answer

A)  debit to an expense account. 
B)  credit to an expense account. 
C)  credit to the Allowance account. 
D)  debit to the Allowance account. 
A)  debit to an expense account. 
B)  credit to an expense account. 
C)  credit to the Allowance account. 
D)  debit to the Allowance account.

Question 11

In a period of rising prices, the inventory method that results in the lowest income tax payment is:

Accepted Answer

A)  LIFO. 
B)  FIFO. 
C)  average cost. 
D)  specific identification. 
A)  LIFO. 
B)  FIFO. 
C)  average cost. 
D)  specific identification.

Allowance for Doubtful Accounts is reported in the:

The cost of intangible assets should be:

Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:

The building should be recorded on Poin's books at:

The Discount on Bonds Payable account:

Which of the following pairs of terms in the area of financial statement analysis are synonymous?

If the market rate of interest is lower than the stated rate, bonds will sell at an amount:

Which of the following statements is true?

One of the two constraints in accounting is:

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:

In a period of rising prices, the inventory method that results in the lowest income tax payment is:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Filters

Exam 11: Reporting and Analyzing Stockholders Equity

Allowance for Doubtful Accounts is reported in the:

The cost of intangible assets should be:

Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:

The building should be recorded on Poin's books at:

The Discount on Bonds Payable account:

Which of the following pairs of terms in the area of financial statement analysis are synonymous?

If the market rate of interest is lower than the stated rate, bonds will sell at an amount:

Which of the following statements is true?

One of the two constraints in accounting is:

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:

In a period of rising prices, the inventory method that results in the lowest income tax payment is:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Filters