Question
If a company wanted to pay less income taxes, they would choose FIFO LIFO Weighted Average Specific Identification Flag this Question Question 32 2 pts
If a company wanted to pay less income taxes, they would choose
| FIFO |
| LIFO |
| Weighted Average |
| Specific Identification |
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Question 32
2 pts
To reconcile the bank statement, which of the following amounts would be added to the bank statement balance?
| service charge |
| outstanding checks |
| deposits in transit |
| amounts collected by the bank for the depositor's account |
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Question 33
2 pts
To reconcile the bank statement, which of the following amounts would be subtracted from the checkbook balance?
| service charge |
| outstanding checks |
| deposits in transit |
| amounts collected by the bank for the depositor's account |
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Question 34
2 pts
The check written to establish the petty cash fund is entered in the journal by
| debiting Cash and crediting Petty Cash |
| debiting Petty Cash and crediting Retained Earnings |
| debiting Retained Earnings and crediting Petty Cash |
| debiting Petty Cash and crediting Cash |
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Question 35
2 pts
An invoice is created by _____________ and received by ________________.
| Accounting; Purchasing |
| the vendor; Purchasing |
| Purchasing; the vendor |
| the vendor; Accounting |
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Question 36
2 pts
Which of the following is the result of the maker of a promissory note failing to pay the note on the due date?
| a dishonored note |
| a discounted note |
| an amortized note |
| a depreciated note |
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Question 37
2 pts
When a company is using the direct write-off method, and an account is written off, the journal entry consists of a ________.
| debit to the Allowance for Bad Debts and a credit to Accounts Receivable |
| credit to Accounts Receivable and a debit to Bad Debts Expense |
| credit to Accounts Receivable and a debit to Interest Expense |
| debit to Accounts Receivable and a credit to Cash |
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Question 38
2 pts
For a promissory note, the entity to whom the promise of future payment is made is the ________.
| endorser of the note |
| payee of the note |
| banker of the note |
| maker of the note |
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Question 39
2 pts
Which of the following is not a method of estimating the amount of bad debt expense at the end of the accounting period?
| direct write-off method |
| aging-of-receivables method |
| percent-of-receivables method |
| percent-of-sales method |
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