1. During March, Company A wrote off a $15,000 account receivable because a customer went bankrupt (assume the company uses the GAAP-required method). This will:

	A.	Decrease the allowance for doubtful accounts
	B.	Reduce the net realizable value of accounts receivable
	C.	Increase the net realizable value of accounts receivable
	D.	Increase bad debt expense
	E.	Reduce net income for the year

2. An accounting issue for accounts receivable is the timing of recognition of the reduction in income caused by the uncollectability of some accounts. With regard to timing, both U.S. GAAP and IFRS require that a seller recognize an expense for estimated uncollectible accounts receivable in the _____.

	A.	period when it recognizes the accounts receivable is uncollectable
	B.	period before it recognizes the related revenue
	C.	same period when it recognizes the related revenue
	D.	period after it recognizes the accounts receivable is uncollectable
	E.	period after it recognizes the related revenue

3. The market value for inventory valuation purposes generally means

	A.	present value of future cash flows
	B.	buyer's offer price
	C.	seller's bid price
	D.	the mean between the seller's bid price and the buyer's offer price
	E.	replacement cost

4. Which of the following taxes is not subject to a maximum amount per year per employee?

	A.	Social security portion of FICA
	B.	State/federal unemployment tax
	C.	Medicare portion of FICA tax
	D.	Both B and C
	E.	A, B, and C

5. Using these abbreviations--DL = Direct Labor, MO = Manufacturing Overhead, DM = Direct Materials, WIP = Work-in-Process, FG = Finished Goods, COGS = Cost of Goods Sold--how would you represent the flow of manufacturing costs through the accounts? (Use + to mean "add to" and to mean "is transferred to.")

	A.	DL + MO WIP DM COGS
	B.	DM + DL + MO WIP FG COGS
	C.	WIP FG COGS
	D.	DM + DL WIP + MO FG COGS
	E.	None of the above