Question
1. If a company determines cost of goods sold only at the end of the period after taking a physical inventory, it A.uses a combination
1. If a company determines cost of goods sold only at the end of the period after taking a physical inventory, it
A.uses a combination of the perpetual and periodic inventory systems. | ||
B. has better control over inventories. | ||
C. uses a perpetual inventory system. | ||
D. uses a periodic inventory system. |
2. Which of the following are classified as other receivables?
A.notes receivable from the sale of merchandise. | ||
B. salary advances to employees. | ||
C. notes payable. | ||
D. trade receivables. |
3. Which of the following statements about depreciation is false?
A. Recording depreciation in each period is an application of the expense recognition (matching) principle. | ||
B. Depreciation is a process of asset valuation, not cost allocation. | ||
C. Depreciation is required because of wear-and-tear and technological obsolescence. | ||
D. The balance in accumulated depreciation represents the total cost that has been charged to expense since placing an asset in service.3 |
4. When a company using the allowance method writes off an account receivable:
A. the write off affects both the income statement and the balance sheet. | ||
B. the company incurs a loss or expense in the period of the write off. | ||
C. the company it is prohibited by law from attempting to collect from the customer. | ||
D. the net (cash) realizable value of accounts receivable remains the same as before the write off. |
5. The cost of land would not include
A. costs to clear the land (to make it ready for construction of a new building) | ||
B. accrued property taxes assumed by the purchaser. | ||
C. annual property taxes incurred after the land was purchased. | ||
D. real estate brokers' commission. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started