As of December 31, Mesa Company has bee n counts recewable of which more than 30 days overdue Mess a ge of the allowance for doubt accounts, Mesa estimates its bad debts losses at of current accounts and 10% of accounts over thirty days. What adjustment should Mesa make to the allowance for doubtful accounts A) S95 credit B) $55 (credit) c) $50 credit) Dj None, the current balance is correct. Net income for Timberland in 2000 was 121 998 in thousands). There was a deduction from net income on the statement of cash flows for $24.419) (in thousands) for the change in accounts receivable. The accounts receivable balance on December 31, 2000 was $ 105,727 in thousands). How much was the accounts receivable balance on December 31, 1999 A) $130,146 B) $81,308 C) $97,579 D) None of the above 35.On January 1, 2016, Ross Company acquired a truck that had a purchase price of $20,000. The seller agreed to allow Ross to pay for the truck over a two-year period at 10% interest with equal payments due at the end of 2016 and 2017. The amount of each annual payment the company must make is (round to the nearest dollar) A) $22,267 B) $11,524 c) $14,151 D) $17,751. 36. The best definition of an accounting system is: A. Journals, ledgers, and worksheets. B. Manual or computer-based records used in developing information about an entity for use by managers and also persons outside the organization. C. The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers. D. The concepts, principles, and standards specifying the information which should be included in financial statements, and how that information should be presented. 37. Which of the following is true? A. The existence of generally accepted accounting principles (GAAP) virtually eliminates the need for professional judgment except in very unusual circumstances. B. Federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors, but to management of the company as well. C. Attaining a passing score on the part of the Uniform CPA Examination that covers professional ethics is evidence of integrity and commitment to ethical conduct. D. A professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency. 38. In the phrase "generally accepted accounting principles," the words accounting principles refers to: A. The standards, assumptions, and concepts that serve as "ground rules" for financial reporting. B. Ethical standards that prohibit fraudulent or misleading financial reporting. C. The steps in the accounting cycle. D. The accounting practices authorized by the Financial Accounting Standards Board (FASB)
