1.) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5 year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. The book value of the computer at December 31, 2012 is?

A.) $240000

B.) $320000

C.) $400000

D.) $160000

2.) Which of the following may indicate a company is manipulating earnings using cookie jar reserves?

A.) higher than usual revenues for the year.

B.)higher than usual allowance for uncollectible accounts at yearend.

C.) lower than usual payables at yearend

D.)lower than usual expenses for the year

3.)During May Team Shirts spent $4000 to buy 800 T shirts. In May, Team Shirts sold 300 of them for $15 each. The rest were sold for cash of $12 each in June. Net income for May and June was

A.) $500 in May and $6000 in June

B.) $4500 in May and $6000 in June

C.) $3000 in May and $3500 in June

D.) $1500 in May and $2500 in June

3.) On January 1, 2011, Company X had accounts receivable of $20,000. During the year, Company X sold $100,000 of merchandise to credit customers. At December 31, 2011, Company X had accounts receivable of $50,000. How much cash did the company collect from credit customers during the year? A.) $100000

B.) $120000

C.) $130000

D.) $70000

4.) Clean Sweep, Inc. started the month of June with $800 worth of cleaning supplies. During the month, Clean Sweep purchased $300 of supplies for cash. At June 30, $200 worth of supplies was unused. How will company report its unused supplies on June 30?

A.) $200 of unused supplies will appear as an asset on the balance sheet.

B.) $900 of unused supplies will appear as an asset on the balance sheet.

C.) $900 of unused supplies will appear as an expense on the income statement. D.) $200 of unused supplies will appear as an expense on the income statement.