Question 10.10. (TCO 5) All of the following are purposes of internal control EXCEPT (Points : 6) | to promote operational inefficiency. to encourage adherence to company policies. to ensure accurate and reliable accounts records. to safeguard assets. Question 1.1. (TCO 6) Under the allowance method for estimating uncollectible accounts, the entry to write off an account (Points : 6) | has no effect on net realizable value. decreases both Accounts Receivable and Uncollectible Accounts, thus decreasing net realizable value. decreases Accounts Receivable, thus decreasing net realizable value. increases Allowance for Uncollectible Accounts, thus decreasing net realizable value. | Question 2.2. (TCO 6) Which account shows the amount of accounts receivable that the business does NOT expect to collect? (Points : 6) | Sales Returns and Allowances Unearned Accounts Receivable Allowance for Uncollectible Accounts Uncollectible Accounts Expense | Question 3.3. (TCO 7) If a company is using a perpetual inventory system, the balance in its inventory account three-quarters of the way through an accounting period would be equal to (Points : 6) | the total of the beginning inventory plus goods purchased during the accounting period. the amount of goods purchased during the period. the inventory on hand at the beginning of the period. the inventory on hand at the beginning of the period plus goods purchased during the accounting period minus goods sold during the period. | Question 4.4. (TCO 7) When the LIFO method is used, cost of goods sold is assumed to consist of (Points : 6) | units with the lowest per unit cost. oldest units. units with the highest per unit cost. most recently purchased units. | Question 5.5. (TCO 8) On January 3, 2013, ZB Corporation acquired equipment for $180,000. The estimated life of the equipment is 5 years. The estimated residual value is $30,000. What is the book value of the asset on December 31, 2014, if ZB Corporation uses the straight-line method of depreciation? (Points : 6) | $150,000 $130,000 $120,000 $90,000 | Question 6.6. (TCO 8) When computing depreciation for a plant asset, which of the following must be estimated? (Points : 6) | Useful life and residual value Residual value and current market value Useful life and current market value Useful life, current market value, and residual value | Question 7.7. (TCO 9) Short-term notes payable (Points : 6) | are shown on the balance sheet with current liabilities. are shown on the balance sheet after bonds payable. are shown as a reduction to notes receivable on the balance sheet, with an appropriate footnote disclosure. are generally due within 3 months, with a maximum time period of 6 months. | Question 8.8. (TCO 9) Monthly sales were $100,000. It was estimated that 4% of the units sold would have to be replaced under warranty. On the date of sale, the company should record a debit to (Points : 6) | Sales for $4,000. Warranty Expense for $4,000. Warranty Payable for $4,000. No entry is required since the actual liability amount is not known. | Question 9.9. (TCO 10) The employer sends the master copy of the W-2 form to (Points : 6) | the Internal Revenue Service. the Federal Reserve Bank. the Social Security Administration. the Treasurer of the United States. | Question 10.10. (TCO 10) The employer sends copies of the W-2 to the (Points : 6) | employee. Social Security Administration. Internal Revenue Service. A and B | |