9. (CH 9) Three accounting issues associated with accounts receivable are

a. depreciating, returns, and valuing.

b. depreciating, valuing, and collecting.

c. recognizing, valuing, and disposing.

d. accrual, bad debts, and disposing.

10. (CH 10) A company purchased factory equipment for $250,000. It is estimated that the equipment will have a $25,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be

a. $100,000.

b. $60,000.

c. $90,000.

d. $43,200.

11. (CH 11) The entry to record the payment of an interest-bearing note at maturity after all interest expense has been recognized is

a. Notes Payable

Interest Payable

Cash

b. Notes Payable

Interest Expense

Cash

c. Notes Payable

Cash

d. Notes Payable

Cash

Interest Payable

12. (CH 12) Partners Acer and Barr have capital balances in a partnership of $40,000 and $60,000, respectively. They agree to share profits and losses as follows:

Acer Barr

As salaries $10,000 $12,000

As interest on capital at the beginning of the year 10% 10%

Remaining profits or losses 50% 50%

If income for the year was $50,000, what will be the distribution of income to Barr?

a. $23,000

b. $27,000

c. $20,000

d. $10,000