1. Capital leases are most similar to

A. mortgage notes.

B. unearned revenue.

C. accounts payable.

D. regular notes payable.

2. A three-month note dated June 12 will mature on

A. September 12.

B. September 1.

C. June 12.

D. September 30.

3. Renaud, Inc. has credit sales of $85,000 for the period. The balance in Allowance for Doubtful Accounts is a debit of $817. If Renaud uses the aging method to estimate uncollectible accounts and an aging of accounts receivable reflected an estimated amount of uncollectible accounts of $6,342, what is the credit to Allowance for Doubtful Accounts?

A. $4,250

B. $6,342

C. $5,525

D. $7,159

4. Outstanding checks are

A. added to the bank balance.

B. subtracted from the bank balance.

C. added to the book balance.

D. subtracted from the book balance.

5. Which of the following would be included in the cost of land?

A. Fencing

B. Unpaid property taxes

C. Required paving

D. In-ground sprinkler systems