I would like some assistance with this exam. This is due in an hour. Attached are the 26 multiple choice questions. Thank You.

1. When total expenses exceed total revenues, the result is a: (Points : 6) net profit. dividend. net earnings. net loss. 0 1304910679 MultipleChoice 2 Question 2. 2. The balance sheet lists: (Points : 6) revenues and expenses. assets, liabilities, revenues and expenses. assets, liabilities and stockholders' equity. the changes in retained earnings. 0 1304910680 MultipleChoice 4 Question 3. 3. Which of the following is a limitation of internal control? (Points : 6) Safeguarding company assets Operational efficiency Employee collusion Accurate and reliable accounting records 0 1304910681 MultipleChoice 6 Question 4. 4. In a bank reconciliation, outstanding checks would be added to the book balance. (Points : 6) True False 0 1304910682 TrueFalse 2 Question 5. 5. When preparing a bank reconciliation, which of the following items should be subtracted from the bank balance? (Points : 6) Outstanding checks Bank service charges Deposits in transit EFT cash receipts 0 1304910683 MultipleChoice 7 Question 6. 6. Which account shows the amount of accounts receivable that the business does NOT expect to collect? (Points : 6) Unearned Accounts Receivable Allowance for Uncollectible Accounts Sales Returns and Allowances Uncollectible Accounts Expense 0 1304910684 MultipleChoice 10 Question 7. 7. Net accounts receivable is calculated as: (Points : 6) accounts receivable plus allowance for uncollectible accounts. accounts receivable less allowance for uncollectible accounts. sales less sales returns and allowances. accounts payable plus allowance for uncollectible accounts. 0 1304910685 MultipleChoice 11 Question 8. 8. Under the allowance method, the entry to reinstate an account previously written off: (Points : 6) decreases net income and increases total assets. increases net income and increases total assets. has no effect on net income or total assets. increases total assets. 0 1304910686 MultipleChoice 14 Question 9. 9. Under the aging-of-accounts-receivable method, the balance in: (Points : 6) Allowance for Uncollectible Accounts prior to adjustment must be considered. Accounts Receivable prior to adjustment must be considered. Allowance for Uncollectible Accounts prior to adjustment is ignored. Uncollectible-Account Expense prior to adjustment must be considered. 0 1304910687 MultipleChoice 16 Question 10. 10. The cost of inventory includes the: (Points : 6) purchase price, delivery costs and sales commissions. purchases price, freight-in and sales taxes paid on the purchase. purchase price, advertising costs and insurance while in transit. purchase price, advertising costs and sales commissions. 0 1304910688 MultipleChoice 18 Question 11. 11. The choice of an inventory costing method will affect: (Points : 6) none of these. the ending inventory and cost of goods sold. the ending inventory. the cost of goods sold. 0 1304910689 MultipleChoice 20 Question 12. 12. The inventory costing method by which the first costs into inventory are the first costs out to cost of goods sold is the: (Points : 6) average-cost method. LIFO method. FIFO method. specific-identification method. 0 1304910690 MultipleChoice 22 Question 13. 13. The economic resources of a business that are expected to produce a benefit in the future are: (Points : 6) liabilities. owners' equity. assets. expenses. 0 1304910691 MultipleChoice 23 Question 14. 14. Payables are classified as: (Points : 6) increases in earnings. liabilities. assets. decreases in earnings. 0 1304910692 MultipleChoice 25 Question 15. 15. Revenues are: (Points : 6) increases in liabilities resulting from delivering goods or services to customers. increases in retained earnings resulting from delivering goods or services to customers. decreases in retained earnings resulting from delivering goods or services to customers. decreases in assets resulting from delivering goods or services to customers. 0 1304910693 MultipleChoice 27 Question 16. 16. When cash is received by mail: (Points : 6) the mailroom compares the deposit to the journal entry made. all of these occur. the mailroom sends all customer checks to the treasurer, who has the cashier deposit the money in the bank. the journal entries are made by the controller. 0 1304910694 MultipleChoice 30 Question 17. 17. All of the following are intangible assets EXCEPT: (Points : 6) goodwill. natural gas. trademarks. copyrights. 0 1304910695 MultipleChoice 32 Question 18. 18. Allowance for Uncollectible Accounts is classified as a(n): (Points : 6) contra-expense account expense account contra-asset account contra-revenue account 0 1304910696 MultipleChoice 33 Question 19. 19. Payables are classified as: (Points : 6) liabilities increases in earnings decreases in earnings assets 0 1304910697 MultipleChoice 36 Question 20. 20. The cost of the inventory that the business has sold to customers is called: (Points : 6) Gross Profit. Purchases. Cost of Goods Sold. Inventory. 0 1304910698 MultipleChoice 38 Question 21. 21. Land is purchased for $62,500. Back taxes paid by the purchaser were $7,500; total costs to demolish an existing building were $11,000; fencing costs were $12,500; and lighting costs were $1,500. What is the cost of the land? (Points : 6) $95,000 $93,500 $81,000 $62,500 0 1304910699 MultipleChoice 39 Question 22. 22. Which of the following would not be included in the Machinery account? (Points : 6) cost of transporting the machinery to its setup location cost of insurance while the machinery is in transit cost of installing the machinery cost of a maintenance insurance plan after the machinery is up and running 0 1304910700 MultipleChoice 42 Question 23. 23. The process of allocating a plant asset's cost to expense over the period the asset is used is called: (Points : 6) accumulation depletion amortization depreciation 0 1304910701 MultipleChoice 43 Question 24. 24. Philly-Delta Corporation issues 100 shares of $1 par value common stock for $12 per share. This transaction will include a: (Points : 6) credit to Additional Paid-in Capital for $1,100 debit to Cash for $1,100 credit to Common Stock for $1,200 debit to Common Stock for $1,200 0 1304910702 MultipleChoice 45 Question 25. 25. Whyte Clinic purchases land for $120,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic had the land graded for $2,200. What amount does Whyte Clinic record as the cost for the land? (Points : 6) $120,000. $122,500. $122,200. $124,700. 0 1304910704 MultipleChoice 48 Question 26. 26. Burke Company purchases land for $85,000 cash. Burke assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Burke record as the cost for the land? (Points : 6) $90,700. $85,000. $88,200. $100,700. 1. (TCO 1)To evaluate the financial operations and health of a business, ratio anaylysis is used. 1) What do profitability ratios indicate about the company? (10 points) 2) Please provide 2 examples of profitability ratios and the related formula and indicate how they can be used in the decision making process. 2. (TCO 4) Linda's Lampshades started business on Jan. 1, 20X1. They had the following inventory transactions: Journals - Jan. 20X1 Purchases Supplier Date Received Quantity Unit Cost Donna 01/10/X1 110 12.00 Thomas 01/15/X1 160 14.00 Cindy 01/18/X1 150 15.00 Amount 1320.00 2240.00 2250.00 Sales Customer Date shipped Norilene 01/16/X1 1. Quantity 200 Amount 25.00 5000.00 Calculate the ending inventory, using the perpetual inventory method: A. Using FIFO B. Using LIFO C. Using Average Cost 2. Sel. Price Prepare the following statement Using FIFO LIFO Average Cost Sales Cost of Sales Gross Profit 3. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2013, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts' accountant estimated that the truck's residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year. 1. Calculate depreciation expense for the truck for each year (2013-2016) using the: a. Straight-line method. b. Double-declining balance method. c. Units of Production method. (For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method. 4. (TCO 7) ABC Inc. was incorporated on 1/15/16. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares. The following transactions occurred during the year: 1/19/16 1/31/16 11/1/16 12/1/16 - - - - Issued 100,000 shares of common stock for $17 cash per share. Issued 3,000 shares of preferred stock for $115 cash per share. Repurchased 30,000 shares of common stock for $22 cash per share. Declared and paid a total dividend of $95,000. Required: 1. Prepare the journal entry for each transaction listed above. 2. In your own words, explain the main differences between common and preferred stock. 1. When total expenses exceed total revenues, the result is a: (Points : 6) net profit. dividend. net earnings. net loss. 0 1304910679 MultipleChoice 2 Question 2. 2. The balance sheet lists: (Points : 6) revenues and expenses. assets, liabilities, revenues and expenses. assets, liabilities and stockholders' equity. the changes in retained earnings. 0 1304910680 MultipleChoice 4 Question 3. 3. Which of the following is a limitation of internal control? (Points : 6) Safeguarding company assets Operational efficiency Employee collusion Accurate and reliable accounting records 0 1304910681 MultipleChoice 6 Question 4. 4. In a bank reconciliation, outstanding checks would be added to the book balance. (Points : 6) True False 0 1304910682 TrueFalse 2 Question 5. 5. When preparing a bank reconciliation, which of the following items should be subtracted from the bank balance? (Points : 6) Outstanding checks Bank service charges Deposits in transit EFT cash receipts 0 1304910683 MultipleChoice 7 Question 6. 6. Which account shows the amount of accounts receivable that the business does NOT expect to collect? (Points : 6) Unearned Accounts Receivable Allowance for Uncollectible Accounts Sales Returns and Allowances Uncollectible Accounts Expense 0 1304910684 MultipleChoice 10 Question 7. 7. Net accounts receivable is calculated as: (Points : 6) accounts receivable plus allowance for uncollectible accounts. accounts receivable less allowance for uncollectible accounts. sales less sales returns and allowances. accounts payable plus allowance for uncollectible accounts. 0 1304910685 MultipleChoice 11 Question 8. 8. Under the allowance method, the entry to reinstate an account previously written off: (Points : 6) decreases net income and increases total assets. increases net income and increases total assets. has no effect on net income or total assets. increases total assets. 0 1304910686 MultipleChoice 14 Question 9. 9. Under the aging-of-accounts-receivable method, the balance in: (Points : 6) Allowance for Uncollectible Accounts prior to adjustment must be considered. Accounts Receivable prior to adjustment must be considered. Allowance for Uncollectible Accounts prior to adjustment is ignored. Uncollectible-Account Expense prior to adjustment must be considered. 0 1304910687 MultipleChoice 16 Question 10. 10. The cost of inventory includes the: (Points : 6) purchase price, delivery costs and sales commissions. purchases price, freight-in and sales taxes paid on the purchase. purchase price, advertising costs and insurance while in transit. purchase price, advertising costs and sales commissions. 0 1304910688 MultipleChoice 18 Question 11. 11. The choice of an inventory costing method will affect: (Points : 6) none of these. the ending inventory and cost of goods sold. the ending inventory. the cost of goods sold. 0 1304910689 MultipleChoice 20 Question 12. 12. The inventory costing method by which the first costs into inventory are the first costs out to cost of goods sold is the: (Points : 6) average-cost method. LIFO method. FIFO method. specific-identification method. 0 1304910690 MultipleChoice 22 Question 13. 13. The economic resources of a business that are expected to produce a benefit in the future are: (Points : 6) liabilities. owners' equity. assets. expenses. 0 1304910691 MultipleChoice 23 Question 14. 14. Payables are classified as: (Points : 6) increases in earnings. liabilities. assets. decreases in earnings. 0 1304910692 MultipleChoice 25 Question 15. 15. Revenues are: (Points : 6) increases in liabilities resulting from delivering goods or services to customers. increases in retained earnings resulting from delivering goods or services to customers. decreases in retained earnings resulting from delivering goods or services to customers. decreases in assets resulting from delivering goods or services to customers. 0 1304910693 MultipleChoice 27 Question 16. 16. When cash is received by mail: (Points : 6) the mailroom compares the deposit to the journal entry made. all of these occur. the mailroom sends all customer checks to the treasurer, who has the cashier deposit the money in the bank. the journal entries are made by the controller. 0 1304910694 MultipleChoice 30 Question 17. 17. All of the following are intangible assets EXCEPT: (Points : 6) goodwill. natural gas. trademarks. copyrights. 0 1304910695 MultipleChoice 32 Question 18. 18. Allowance for Uncollectible Accounts is classified as a(n): (Points : 6) contra-expense account expense account contra-asset account contra-revenue account 0 1304910696 MultipleChoice 33 Question 19. 19. Payables are classified as: (Points : 6) liabilities increases in earnings decreases in earnings assets 0 1304910697 MultipleChoice 36 Question 20. 20. The cost of the inventory that the business has sold to customers is called: (Points : 6) Gross Profit. Purchases. Cost of Goods Sold. Inventory. 0 1304910698 MultipleChoice 38 Question 21. 21. Land is purchased for $62,500. Back taxes paid by the purchaser were $7,500; total costs to demolish an existing building were $11,000; fencing costs were $12,500; and lighting costs were $1,500. What is the cost of the land? (Points : 6) $95,000 $93,500 $81,000 $62,500 0 1304910699 MultipleChoice 39 Question 22. 22. Which of the following would not be included in the Machinery account? (Points : 6) cost of transporting the machinery to its setup location cost of insurance while the machinery is in transit cost of installing the machinery cost of a maintenance insurance plan after the machinery is up and running 0 1304910700 MultipleChoice 42 Question 23. 23. The process of allocating a plant asset's cost to expense over the period the asset is used is called: (Points : 6) accumulation depletion amortization depreciation 0 1304910701 MultipleChoice 43 Question 24. 24. Philly-Delta Corporation issues 100 shares of $1 par value common stock for $12 per share. This transaction will include a: (Points : 6) credit to Additional Paid-in Capital for $1,100 debit to Cash for $1,100 credit to Common Stock for $1,200 debit to Common Stock for $1,200 0 1304910702 MultipleChoice 45 Question 25. 25. Whyte Clinic purchases land for $120,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic had the land graded for $2,200. What amount does Whyte Clinic record as the cost for the land? (Points : 6) $120,000. $122,500. $122,200. $124,700. 0 1304910704 MultipleChoice 48 Question 26. 26. Burke Company purchases land for $85,000 cash. Burke assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Burke record as the cost for the land? (Points : 6) $90,700. $85,000. $88,200. $100,700. 1. When total expenses exceed total revenues, the result is a: (Points : 6) net profit. dividend. net earnings. net loss. 0 1304910679 MultipleChoice 2 Question 2. 2. The balance sheet lists: (Points : 6) revenues and expenses. assets, liabilities, revenues and expenses. assets, liabilities and stockholders' equity. the changes in retained earnings. 0 1304910680 MultipleChoice 4 Question 3. 3. Which of the following is a limitation of internal control? (Points : 6) Safeguarding company assets Operational efficiency Employee collusion Accurate and reliable accounting records 0 1304910681 MultipleChoice 6 Question 4. 4. In a bank reconciliation, outstanding checks would be added to the book balance. (Points : 6) True False 0 1304910682 TrueFalse 2 Question 5. 5. When preparing a bank reconciliation, which of the following items should be subtracted from the bank balance? (Points : 6) Outstanding checks Bank service charges Deposits in transit EFT cash receipts 0 1304910683 MultipleChoice 7 Question 6. 6. Which account shows the amount of accounts receivable that the business does NOT expect to collect? (Points : 6) Unearned Accounts Receivable Allowance for Uncollectible Accounts Sales Returns and Allowances Uncollectible Accounts Expense 0 1304910684 MultipleChoice 10 Question 7. 7. Net accounts receivable is calculated as: (Points : 6) accounts receivable plus allowance for uncollectible accounts. accounts receivable less allowance for uncollectible accounts. sales less sales returns and allowances. accounts payable plus allowance for uncollectible accounts. 0 1304910685 MultipleChoice 11 Question 8. 8. Under the allowance method, the entry to reinstate an account previously written off: (Points : 6) decreases net income and increases total assets. increases net income and increases total assets. has no effect on net income or total assets. increases total assets. 0 1304910686 MultipleChoice 14 Question 9. 9. Under the aging-of-accounts-receivable method, the balance in: (Points : 6) Allowance for Uncollectible Accounts prior to adjustment must be considered. Accounts Receivable prior to adjustment must be considered. Allowance for Uncollectible Accounts prior to adjustment is ignored. Uncollectible-Account Expense prior to adjustment must be considered. 0 1304910687 MultipleChoice 16 Question 10. 10. The cost of inventory includes the: (Points : 6) purchase price, delivery costs and sales commissions. purchases price, freight-in and sales taxes paid on the purchase. purchase price, advertising costs and insurance while in transit. purchase price, advertising costs and sales commissions. 0 1304910688 MultipleChoice 18 Question 11. 11. The choice of an inventory costing method will affect: (Points : 6) none of these. the ending inventory and cost of goods sold. the ending inventory. the cost of goods sold. 0 1304910689 MultipleChoice 20 Question 12. 12. The inventory costing method by which the first costs into inventory are the first costs out to cost of goods sold is the: (Points : 6) average-cost method. LIFO method. FIFO method. specific-identification method. 0 1304910690 MultipleChoice 22 Question 13. 13. The economic resources of a business that are expected to produce a benefit in the future are: (Points : 6) liabilities. owners' equity. assets. expenses. 0 1304910691 MultipleChoice 23 Question 14. 14. Payables are classified as: (Points : 6) increases in earnings. liabilities. assets. decreases in earnings. 0 1304910692 MultipleChoice 25 Question 15. 15. Revenues are: (Points : 6) increases in liabilities resulting from delivering goods or services to customers. increases in retained earnings resulting from delivering goods or services to customers. decreases in retained earnings resulting from delivering goods or services to customers. decreases in assets resulting from delivering goods or services to customers. 0 1304910693 MultipleChoice 27 Question 16. 16. When cash is received by mail: (Points : 6) the mailroom compares the deposit to the journal entry made. all of these occur. the mailroom sends all customer checks to the treasurer, who has the cashier deposit the money in the bank. the journal entries are made by the controller. 0 1304910694 MultipleChoice 30 Question 17. 17. All of the following are intangible assets EXCEPT: (Points : 6) goodwill. natural gas. trademarks. copyrights. 0 1304910695 MultipleChoice 32 Question 18. 18. Allowance for Uncollectible Accounts is classified as a(n): (Points : 6) contra-expense account expense account contra-asset account contra-revenue account 0 1304910696 MultipleChoice 33 Question 19. 19. Payables are classified as: (Points : 6) liabilities increases in earnings decreases in earnings assets 0 1304910697 MultipleChoice 36 Question 20. 20. The cost of the inventory that the business has sold to customers is called: (Points : 6) Gross Profit. Purchases. Cost of Goods Sold. Inventory. 0 1304910698 MultipleChoice 38 Question 21. 21. Land is purchased for $62,500. Back taxes paid by the purchaser were $7,500; total costs to demolish an existing building were $11,000; fencing costs were $12,500; and lighting costs were $1,500. What is the cost of the land? (Points : 6) $95,000 $93,500 $81,000 $62,500 0 1304910699 MultipleChoice 39 Question 22. 22. Which of the following would not be included in the Machinery account? (Points : 6) cost of transporting the machinery to its setup location cost of insurance while the machinery is in transit cost of installing the machinery cost of a maintenance insurance plan after the machinery is up and running 0 1304910700 MultipleChoice 42 Question 23. 23. The process of allocating a plant asset's cost to expense over the period the asset is used is called: (Points : 6) accumulation depletion amortization depreciation 0 1304910701 MultipleChoice 43 Question 24. 24. Philly-Delta Corporation issues 100 shares of $1 par value common stock for $12 per share. This transaction will include a: (Points : 6) credit to Additional Paid-in Capital for $1,100 debit to Cash for $1,100 credit to Common Stock for $1,200 debit to Common Stock for $1,200 0 1304910702 MultipleChoice 45 Question 25. 25. Whyte Clinic purchases land for $120,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic had the land graded for $2,200. What amount does Whyte Clinic record as the cost for the land? (Points : 6) $120,000. $122,500. $122,200. $124,700. 0 1304910704 MultipleChoice 48 Question 26. 26. Burke Company purchases land for $85,000 cash. Burke assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Burke record as the cost for the land? (Points : 6) $90,700. $85,000. $88,200. $100,700. 1. (TCO 1)To evaluate the financial operations and health of a business, ratio anaylysis is used. 1) What do profitability ratios indicate about the company? (10 points) 2) Please provide 2 examples of profitability ratios and the related formula and indicate how they can be used in the decision making process. 2. (TCO 4) Linda's Lampshades started business on Jan. 1, 20X1. They had the following inventory transactions: Journals - Jan. 20X1 Purchases Supplier Date Received Quantity Unit Cost Donna 01/10/X1 110 12.00 Thomas 01/15/X1 160 14.00 Cindy 01/18/X1 150 15.00 Amount 1320.00 2240.00 2250.00 Sales Customer Date shipped Norilene 01/16/X1 1. Quantity 200 Amount 25.00 5000.00 Calculate the ending inventory, using the perpetual inventory method: A. Using FIFO B. Using LIFO C. Using Average Cost 2. Sel. Price Prepare the following statement Using FIFO LIFO Average Cost Sales Cost of Sales Gross Profit 3. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2013, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts' accountant estimated that the truck's residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year. 1. Calculate depreciation expense for the truck for each year (2013-2016) using the: a. Straight-line method. b. Double-declining balance method. c. Units of Production method. (For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method. 4. (TCO 7) ABC Inc. was incorporated on 1/15/16. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares. The following transactions occurred during the year: 1/19/16 1/31/16 11/1/16 12/1/16 - - - - Issued 100,000 shares of common stock for $17 cash per share. Issued 3,000 shares of preferred stock for $115 cash per share. Repurchased 30,000 shares of common stock for $22 cash per share. Declared and paid a total dividend of $95,000. Required: 1. Prepare the journal entry for each transaction listed above. 2. In your own words, explain the main differences between common and preferred stock. 1. When total expenses exceed total revenues, the result is a: (Points : 6) net profit. dividend. net earnings. net loss. 0 1304910679 MultipleChoice 2 Question 2. 2. The balance sheet lists: (Points : 6) revenues and expenses. assets, liabilities, revenues and expenses. assets, liabilities and stockholders' equity. the changes in retained earnings. 0 1304910680 MultipleChoice 4 Question 3. 3. Which of the following is a limitation of internal control? (Points : 6) Safeguarding company assets Operational efficiency Employee collusion Accurate and reliable accounting records 0 1304910681 MultipleChoice 6 Question 4. 4. In a bank reconciliation, outstanding checks would be added to the book balance. (Points : 6) True False 0 1304910682 TrueFalse 2 Question 5. 5. When preparing a bank reconciliation, which of the following items should be subtracted from the bank balance? (Points : 6) Outstanding checks Bank service charges Deposits in transit EFT cash receipts 0 1304910683 MultipleChoice 7 Question 6. 6. Which account shows the amount of accounts receivable that the business does NOT expect to collect? (Points : 6) Unearned Accounts Receivable Allowance for Uncollectible Accounts Sales Returns and Allowances Uncollectible Accounts Expense 0 1304910684 MultipleChoice 10 Question 7. 7. Net accounts receivable is calculated as: (Points : 6) accounts receivable plus allowance for uncollectible accounts. accounts receivable less allowance for uncollectible accounts. sales less sales returns and allowances. accounts payable plus allowance for uncollectible accounts. 0 1304910685 MultipleChoice 11 Question 8. 8. Under the allowance method, the entry to reinstate an account previously written off: (Points : 6) decreases net income and increases total assets. increases net income and increases total assets. has no effect on net income or total assets. increases total assets. 0 1304910686 MultipleChoice 14 Question 9. 9. Under the aging-of-accounts-receivable method, the balance in: (Points : 6) Allowance for Uncollectible Accounts prior to adjustment must be considered. Accounts Receivable prior to adjustment must be considered. Allowance for Uncollectible Accounts prior to adjustment is ignored. Uncollectible-Account Expense prior to adjustment must be considered. 0 1304910687 MultipleChoice 16 Question 10. 10. The cost of inventory includes the: (Points : 6) purchase price, delivery costs and sales commissions. purchases price, freight-in and sales taxes paid on the purchase. purchase price, advertising costs and insurance while in transit. purchase price, advertising costs and sales commissions. 0 1304910688 MultipleChoice 18 Question 11. 11. The choice of an inventory costing method will affect: (Points : 6) none of these. the ending inventory and cost of goods sold. the ending inventory. the cost of goods sold. 0 1304910689 MultipleChoice 20 Question 12. 12. The inventory costing method by which the first costs into inventory are the first costs out to cost of goods sold is the: (Points : 6) average-cost method. LIFO method. FIFO method. specific-identification method. 0 1304910690 MultipleChoice 22 Question 13. 13. The economic resources of a business that are expected to produce a benefit in the future are: (Points : 6) liabilities. owners' equity. assets. expenses. 0 1304910691 MultipleChoice 23 Question 14. 14. Payables are classified as: (Points : 6) increases in earnings. liabilities. assets. decreases in earnings. 0 1304910692 MultipleChoice 25 Question 15. 15. Revenues are: (Points : 6) increases in liabilities resulting from delivering goods or services to customers. increases in retained earnings resulting from delivering goods or services to customers. decreases in retained earnings resulting from delivering goods or services to customers. decreases in assets resulting from delivering goods or services to customers. 0 1304910693 MultipleChoice 27 Question 16. 16. When cash is received by mail: (Points : 6) the mailroom compares the deposit to the journal entry made. all of these occur. the mailroom sends all customer checks to the treasurer, who has the cashier deposit the money in the bank. the journal entries are made by the controller. 0 1304910694 MultipleChoice 30 Question 17. 17. All of the following are intangible assets EXCEPT: (Points : 6) goodwill. natural gas. trademarks. copyrights. 0 1304910695 MultipleChoice 32 Question 18. 18. Allowance for Uncollectible Accounts is classified as a(n): (Points : 6) contra-expense account expense account contra-asset account contra-revenue account 0 1304910696 MultipleChoice 33 Question 19. 19. Payables are classified as: (Points : 6) liabilities increases in earnings decreases in earnings assets 0 1304910697 MultipleChoice 36 Question 20. 20. The cost of the inventory that the business has sold to customers is called: (Points : 6) Gross Profit. Purchases. Cost of Goods Sold. Inventory. 0 1304910698 MultipleChoice 38 Question 21. 21. Land is purchased for $62,500. Back taxes paid by the purchaser were $7,500; total costs to demolish an existing building were $11,000; fencing costs were $12,500; and lighting costs were $1,500. What is the cost of the land? (Points : 6) $95,000 $93,500 $81,000 $62,500 0 1304910699 MultipleChoice 39 Question 22. 22. Which of the following would not be included in the Machinery account? (Points : 6) cost of transporting the machinery to its setup location cost of insurance while the machinery is in transit cost of installing the machinery cost of a maintenance insurance plan after the machinery is up and running 0 1304910700 MultipleChoice 42 Question 23. 23. The process of allocating a plant asset's cost to expense over the period the asset is used is called: (Points : 6) accumulation depletion amortization depreciation 0 1304910701 MultipleChoice 43 Question 24. 24. Philly-Delta Corporation issues 100 shares of $1 par value common stock for $12 per share. This transaction will include a: (Points : 6) credit to Additional Paid-in Capital for $1,100 debit to Cash for $1,100 credit to Common Stock for $1,200 debit to Common Stock for $1,200 0 1304910702 MultipleChoice 45 Question 25. 25. Whyte Clinic purchases land for $120,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic had the land graded for $2,200. What amount does Whyte Clinic record as the cost for the land? (Points : 6) $120,000. $122,500. $122,200. $124,700. 0 1304910704 MultipleChoice 48 Question 26. 26. Burke Company purchases land for $85,000 cash. Burke assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Burke record as the cost for the land? (Points : 6) $90,700. $85,000. $88,200. $100,700