13 of 35

A bank statement shows the

	book errors as of a specific date.
	ending bank balance as of a specific date.
	reconciled balance as of a specific date.
	ending book balance as of a specific date.

Question

14 of 35

Allied Inc. has an Account Receivable balance of $24,500, and its Allowance for Uncollectible Accounts balance is $1,250. How will this be reported on the Balance Sheet?

a. Accounts Receivable	$24,500
Less: Allowance for Uncollectible Accounts	1,250
Accounts Receivable, Net	$23,250

b. Accounts Receivable

$23,250

c. Accounts Receivable, Net of Allowance for Uncollectible Accounts of $1,250

$23,250

d. Both a and c are acceptable ways to report Accounts Receivable.

Question

15 of 35

Cesario Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method will be

	$35,500.
	$33,350.
	$36,250.
	$31,250.

Question

16 of 35

TLR Productions reported Interest expense of $8,300, Income tax expense of $26,400, and Net income of $88,700. TLR's interest coverage ratio is (rounded to three decimals)

	0.067.
	0.072.
	14.867.
	13.867.

Question

17 of 35

The adjusting entry to record incurred but not yet paid employee wages includes

	a debit to Cash.
	a debit to Wages Payable.
	a debit to Wages Expense.
	a debit to Wages Earned.

Question

18 of 35

The basic unit of stock is called a(n)

	authorization.
	ownership record.
	certificate.
	share.

Question

19 of 35

The rate of interest that is printed on a bond is called the ________ rate of interest.

	variable
	stated
	maturity
	market

Question

20 of 35

Accounting for stock at a stated value is almost identical to recording

	no-par stock.
	par stock.
	issued stock.
	outstanding stock.

Question

21 of 35

The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be

	debit Cash $21,000; credit Common Stock $18,000; credit Paid-in Capital in Excess of Stated Value$3,000.
	debit Cash $21,000; credit Common Stock $21,000.
	debit Cash $18,000; debit Paid-in Capital in Excess of Stated Value$3,000; credit Common Stock $21,000.
	debit Cash $18,000; credit Common Stock $18,000.

Question

22 of 35

By NOT accruing warranty expense

	reported expenses will be understated, and net income will be understated.
	reported expenses will be overstated, and reported liabilities will be understated.
	reported liabilities will be understated, and net income will be overstated.
	reported liabilities will be overstated, and net income will be understated.

Question

23 of 35

S&C Roofing had sales on account of $28,500, which were subject to state sales tax of 9%. The entry to record the sales would be to

	debit Accounts Receivable, $28,500; debit Sales tax payable, $2,565; credit Sales revenue, $31,065.
	debit Accounts Receivable, $28,500; credit Sales revenue, $28,500.
	debit Accounts Receivable, $31,065; credit Sales revenue, $28,500; credit Sales tax payable, $2,565.
	debit Accounts Receivable, $31,065; credit Sale revenue, $31,065.

Question

24 of 35

A $250,000 issue of bonds that sold for $275,000 matures on June 25, 2020. The journal entry to record the payment of the bond on the maturity date is to:

	debit Bonds payable, $250,000; credit Cash, $250,000.
	debit Cash, $250,000; credit Bonds payable, $250,000.
	debit Bonds payable, $275,000; credit Cash, $275,000.
	debit Cash, $275,000; credit Bonds payable, $275,000.

Question

25 of 35

Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is

	44.6%.
	28.7%.
	80.6%.
	55.4%.