Goodwill can be: Select one: O A. incremented annually on the balance sheet if a company earns above normal profit. O B. valued for negotiating purposes on the basis of future earnings potential. O C. amortized for income tax purposes by the double-declining method. OD. amortized over a 40-year period, regardless of useful life. Which of the following procedures is the least essential attribute of a cash disbursement control system? on Select one: O A. Cheques are signed only when supported by adequate documentation and verification OB. Supervision of all cash disbursement and record keeping functions OC. All disbursements (except petty cash) are required to be made by cheque FD. Use of multiple bank accounts E. Establishment of a petty cash system 55 Question 4 Not yet answered The allowance method for estimating and reporting bad debt expense: Marked out of 1.00 P Flag question Select one: O A. Generally recognizes gains and losses on bad debts in the period when the related account receivable is removed from the accounting records, O B. Demonstrates a practical application of the full-disclosure principle. OC. Generally adheres to the matching principle better than the specific write-off method. O D. Is optional under GAAP for all retail companies. 55 Question 5 Not yet answered Marked out of 1.00 Cummings corporation purchased new equipment on January 1, 2014. The equipment cost $8,800, had an estimated useful life of four years, and a residual value of $400. Using declining balance amortization, the amortization expense recorded at the end of 2015 should be: 10 F Flag question 19 28 Select one: O A. $2,100 O B. $2,112 OC. $2,106 OD. $2,200 37 46 55 Question 6 Not yet answered Amortization expense each period is proportionate to usage of the asset each period with the: Marked out of 1.00 P Flag question Select one: O A. Replacement system. O B. Sum-of-the-years'-digits method. O C. Service hours method. O D. Retirement system. O E Inventory system. Previous page Next page Not yet The balance in a company's accounts payable at December 31, 2012 was $900,000 before any necessary year-end adjustment relating to the following: answered Marked out of 1.00 P Flag question Goods were in transit from a vendor to the company on December 31, 2012. The invoice cost was $50,000, and the goods were shipped f.ob. shipping point on December 29, 2012. The goods were received on January 4, 2013. Goods shipped f.o.b. shipping point on December 20, 2012 from a vendor to the company were lost in transit. The invoice cost was $25,000. On January 5, 2013, the company filed a $25,000 claim against the common carrier. Goods shipped f.o.b. destination on December 21, 2012 from a vendor to the company were received on January 6, 2013. The invoice cost was $15,000. What amount should the company report as accounts payable on its December 31, 2012 balance sheet? Select one: O A. $925,000 B. $975,000 C. $950,000 D. 5940,000 Question 8 Not yet answered A company uses the allowance method of accounting for bad debt. During 2001, an important customer became bankrupt and a related receivable of $6,400 was deemed uncollectible. The 2001 entry to record this event would be: Marked out of 1.00 P Flag question 6,400 6,400 6,400 6,400 1Bad debt expense6,400 Allowance for doubtful accounts 2 Loss on receivable Accounts receivable B Bad debt expense Accounts receivable 14 Loss on receivable Allowance for doubtful accounts IS Allowance for doubtful accounts Accounts receivable 6,400 16,400 6,400 16,400 6,400 Select one: A. Choice 1 B. Choice 2 C. Choice 3 Choice 4 E Choice 5 Which of the following note disclosure are NOT required under ASPE with respect to inventories? Question 9 Not yet answered Marked out of 1.00 10 P Flag question 19 Select one: O A. Amount of inventory expensed through cost of sales. O B. Inventory write-downs. O. C. Accounting policies and cost flows. OD. Carrying values of inventory by category 28 37 46 Previous page Next page 5 Final Project Jump to
