A company recently purchased a building that it plans to renovate to get ready for use in its operations. All expenditures to repair and renovate the existing building for its intended use are charged to:

A.building

B.land

C.land and building

D.land improvements expense

E.land improvements

Under the allowance method for estimating uncollectible accounts, the entry to write off an account

A.increases Allowance for Uncollectible Accounts, thus decreasing net realizable value

B.increases both Accounts Receivable and Allowance for Uncollectible Accounts, thus decreasing net realizable value.

C.has no effect on net realizable value

D.decreases Accounts Receivable, thus decreasing net realizable value

E.none of the above

Under the indirect method of preparing the statement of cash flows, the starting point to determine net cash from operating activities is:

A.the beginning cash balance

B.net income

C.none of the above

D.the ending cash balance

E.sales

Allowance for Uncollectible Accounts is classified as:

A.none of the above

B.a contra-liability account

C.a contra-revenue account

D.a contra-expense account

E.a contra-asset account

The net realizable value of accounts receivable is the

A.amount the company expects to pay to creditors

B.none of the above

C.amount the company expects to collect from customers

D.amount remaining after uncollectible accounts are written off

E.amount the company can collect from a factor when the receivables are sold