1. A machine that originally had an estimated useful life of 8 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining: A. 2 years B. 5 years C. 7 years D. 12 years E. 10 years

2. ALI purchased merchandise from SAAD on October 17 of the current year. SAAD accepted ALIS $10,000, 90-day, 10% note as payment. What entry should SAAD make on January 15 of the next year when the note is paid? A.

Notes Receivable	10,000
Interest Receivable	250
Sales		10,250

B.

Cash	10,250
Notes Receivable		10,250

C.

Cash	10,250
Interest Revenue		208
Interest Receivable		42
Notes Receivable		10,000

D.

Cash	10,250
Interest Revenue		42
Interest Receivable		208

8. Ahmed company sold a machine that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the machine was $40,000. The company should recognize a: A. $0 gain or loss B. $20,000 gain C. $20,000 loss D. $40,000 loss E. $60,000 gain
9. Total interest to be earned on a $7,500, 9%, 120-day note is:
   1. $62.5
   2. $675.00
   3. $221.92
   4. $225.00

10. When reimbursing the petty cash fund: A. Cash is debited B. Petty Cash is credited C. Petty Cash is debited D. Appropriate expense accounts are debited E. No expenses are recorded