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14. Allowance for Doubt ful Accounts on the balance sheet a. appears under the heading "Other Assets b. is offset against accounts receivable increases the cash realizable value of accounts receivable. d. is offset against total current assets. 15. A check returned by the bank marked "NSF" means a not satisfactorily filled-out.. b. not sufficient funds. c. no signature found. d. no service fee. 16. Which of the following expressions is incorrect? a. Net income operating expenses-gross profit operating expenses cost of goods sold gross profit c. Sales cost of goods sold operating expenses - net income d. Gross profit operating expenses net income 17. The custodian of a company asset should a. not have access to the accounting records for that asset b. be an accountant c. be someone outside the company d. have access to the accounting records for that asset. 18. Internal control is defined, in part, as a plan that safeguards a. 1iabilities b. capital stock c. assets. d. all balance sheet accounts. 19. Under the allowance method, writing off an uncollectible account a. affects only income statement accounts. b. is not acceptable practice. c. affects both balance sheet and income statement accounts. d. affects only balance sheet accounts. 20. A company purchased factory equipment on April 1, 2002 for $40,0oo. It is estimated that the equipment will have a $5,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2002 is a. $2,625. b. $3,000. c. $3,500. d. $4,000