1 Which depreciation method will result in the most total depreciation expense being recognized over a depreciable assets entire life?

A. the straight-line method

B. the double- declining balance method

C. the activity (units-of-production) method

D. All three of these methods report the same total depreciation expense over the assets life

2 Timmys Tires sold $18,750 worth of tires to customer using VISA. The credit card fee is 4% of sales. The amount of sales Timmys should recognize is_____

Philipsburg Corporation sells mugs to fine retailers across the world. Data from its periodic inventory system is presented below. Inventory is sold for $170 per unit. Operating expense, excluding cost of goods, totaled $40,000

Date Number of units Unit Cost Total Cost

January 1 Beginning Inventory 300 $100 $30,000

January 13 Purchase 400 $110 $44,000

January 22 Purchase 500 $120 $60,000

3 Which cost flow method would result in the highest taxable income for the period?

A. LIFO

B. Weighted average method

C. FIFO

D. Each of the methods would have equal net income for the period.

4 In the allowance method, the adjustment used to write off an uncollectiable account____.

A. decreases net income

B. reduces total assets

C. decreases liabilities

D. has no effect on net income

5. Ace Electronics sold $350, of merchandise to a customer on account. The sale tax was 6%. How much sales revenue did Ace earn?

A. $371

B. $350

C. $329

D. $0

6. What is the effect on the accounting equation of writing off an uncollectible account of $75?

A. no net effect on total assets

B. decrease assets $75 and increase expense $75

C. increase assets $75 and decrease liabilities $75

D. decrease assets $75 and decrease liabilities $75

7. Zenith Company sold $10,000 of merchandise to Nadir Company, with terms of 2/10, n/30. Five days later, Nadir returned $1,000 of the merchandise. If Nadir does NOT pay within the discount period, how much cash will Zenith receive?

A. $9,000

B. $9,800

C. $8,820

D. $10,000

8 DSF Company sold an asset for $8,500 in cash. The asset had an historical cost of $30,000 and accumulated depreciation of $20,000 on the day it was sold. How much is the gain or loss on the sale?

A. $10,000 loss

B. $21,500 loss

C. $1,500 loss

D. $1,500 gain

9. Rigby Company buys merchandise from Shoshone Company with an invoice of $10,000 and shipping terms of FOB destination. The freight costs amount to $7,000. Which of the following is True?

A. Rigby Company will record freight-in cost of $7,000

B. Shoshone Company will record freight-in cost of $7,000

C. Shoshone Company will record freight-out cost of $7,000

D. Rigby Company will have inventory cost of $107,000