1 . Allowance for Doubtful Accounts

Group of answer choices

is offset against current liabilities

increases the cash realizable value of accounts receivable

appears on the balance sheet

is offset against accumulated depreciation

2. Under the allowance method, the entry to write-off an uncollectible accounts receivable results in:

Group of answer choices

a debit to Provision for Doubtful Accounts and a credit to Accounts Receivable

a debit to Provision for Doubtful Accounts and a credit to Allowance for Doubtful Accounts

a debit to Allowance for Doubtful Accounts and a credit to Provision for Doubtful Accounts

a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable

3. Which of the following expressions is incorrect?

Group of answer choices

Gross profit operating expenses = net income

Sales cost of goods sold operating expenses = net income

Net income + operating expenses = gross profit

Operating expenses cost of goods sold = gross profit

4. Farley Foods had beginning inventory of $15,000 at March 1. During the month, the company made purchases of $40,000. The inventory at the end of the month is $17,300. How much is the cost of goods sold for the month of March?

Group of answer choices

$37,700

$40,000

$55,000

$57,300

5.

Followings are balances of accounts.

Accounts	Balance
Accounts Payable	$ 25,000
Accounts Receivable	10,000
Accumulated Depreciation	20,000
Allowance for Doubtful Accounts	5,000
Building	50,000
Cash	50,000
Common Stock	140,000
Equipment	40,000
Notes Payable	5,000
Prepaid Insurance	50,000
Provision for Doubtful Accounts	10,000
Retained Earnings	5,000

Based on provided information, calculate the value of Total Assets.

Group of answer choices

$175,000

$200,000

$220,000

$225,000

6.

Followings are balances of accounts.

Accounts	Balance
Accounts Payable	$ 25,000
Accounts Receivable	10,000
Accumulated Depreciation	20,000
Allowance for Doubtful Accounts	5,000
Building	50,000
Cash	50,000
Common Stock	140,000
Equipment	40,000
Notes Payable	5,000
Prepaid Insurance	50,000
Provision for Doubtful Accounts	10,000
Retained Earnings	5,000

Based on provided information, calculate the value of total Non-current assets.

Group of answer choices

$70,000

$75,000

$90,000

$110,000

7.

Match the items below with the appropriate example.

Group of answer choices

Salvage velue

[ Choose ] Depreciation rate is the highest for the first year, and the smallest for the last year Equal amount of depreciation is recorded each year Depreciation is calculated based on its usage Expected cash value of the asset at the end of its useful life Cost minus (less) accumulated depreciation

Straight line method

[ Choose ] Depreciation rate is the highest for the first year, and the smallest for the last year Equal amount of depreciation is recorded each year Depreciation is calculated based on its usage Expected cash value of the asset at the end of its useful life Cost minus (less) accumulated depreciation

Sum-of-year digits' method

[ Choose ] Depreciation rate is the highest for the first year, and the smallest for the last year Equal amount of depreciation is recorded each year Depreciation is calculated based on its usage Expected cash value of the asset at the end of its useful life Cost minus (less) accumulated depreciation

Book value

[ Choose ] Depreciation rate is the highest for the first year, and the smallest for the last year Equal amount of depreciation is recorded each year Depreciation is calculated based on its usage Expected cash value of the asset at the end of its useful life Cost minus (less) accumulated depreciation

Units-of-activity method