____1. Notes Receivable are

A. Listed under Current Assets on the Balance Sheet

B. Can be created in exchange for an Accounts Receivable

C. Can be evidence of a cash loan made by the firm to

another party

D. Typically can have a repayment horizon up to 1 year

E. All of the above.

____2. A gain or loss on the sale of a plant asset is determined

by comparing the:

A. Asset's original cost with the sales proceeds

B. Asset's book value with the sales proceeds

C. Asset's original cost with the asset's book value.

D. Initial estimate of the asset's salvage value with the sales proceeds.

E. None of these.

____3 A plant asset's book value equals its estimated salvage value:

A. On the date of the asset's disposal

B. At the end of the asset's useful life

C. On each date the asset's depreciation is brought up to date.

D. At any time throughout the asset's useful life

E. None of these.

____4. Which is a factor in determining federal income tax withheld?

A. Level of wages

B. Marital status

C. Number of dependents

D. Pay period

E. All of the above

____5. According to the text which of the following can be used to estimate the credit to Allowance for Uncollectible Accounts for a given time period?

A. Net Sales

B. Average Inventory

C. Aged Accounts Receivable

D. Operating Income

E. Both A and C

____6. The book value of a depreciable asset is

A. The original cost of the asset.

B. The original cost of the asset less its accumulated

depreciation.

C. The original cost of the asset less its salvage value.

D. The accumulated depreciation on the asset.

E. None of these.

____7. A major shortcoming of the direct write-off method is that credit losses are:

Not matched with sales.

Never recognized.

Not shown in the subsidiary ledger.

Sometimes collected at a future date.

E. None of these

____8. Federal Unemployment Tax Act taxes are

A. Levied on both employer and employee

B. Levied on employee only

C. Levied on employer only

D. Levied only on the firm's executives

E. None of the above