Just want to double check my answers. and it its wrong, which one is the corrwcr answer.
A) $147,368 B) 552.632 $200,000 D) $140,000 6) Which of the following items should be depreciated? Tangible property, plast, and equipment other than and B) Intangible property C) Land D) Natural resources 7) Which of the following accounting principles requires depreciation? A) The revenue recognition principle B. The matching principle C) The reliability principle D) The entity concept 8) Which of the following depreciation methods does NOT use a residual value in the depreciation formula A) Units-of-production ks) Double-declining-balance C) Straight-line D) First-In, First Out 9) Which of the following is TRUE when the estimate of an asset's useful life is increased? A) The new estimate is ignored until the last year of the asset's life. B) Annual depreciation expense is increased for the remaining years of the asset's life. C) Prior years' financial statements must be restated ID) Annual depreciation expense is decreased for the remaining years of the asset's life. 10) A company purchased a computer on July 1, 2012. The computer has an estimated useful life of 5 years and will have no salvage value. It was purchased for S10,000. It is estimated that the computer can be used for 5.000 hours. The computer was used for 450 hours during 2012. If the goal is to record higher depreciation expense in the earlier years, which method should be used? A) Units-of-production B) Straight-line Double declining-balance D) First-In, First-Out 11) An asset was purchased for $12,000. The asset's estimated useful life was 5 years and its residual value was $2,000. Straight-line depreciation was used. How much gain or loss is reported in the asset is sold for $9.000 at the end of the first year? AM $1,000 gain B) $2,000 loss C) No gain or loss D) $1,000 loss (12) A plant asset is fully depreciated when the book value is: A) greater than the salvage value. B) greater than the market value. equal to the salvage value Page 2 of 6 D) equal to the market value 13) Albatross Services scrapped a van cvices scrapped a van. The van originally cost $40.000, had an estimated salvage value of nero, The mated life of 10 years. At the time it was scrupped, it was fully depreciated. What was the effect of scrapping the van? A) Gain of $2.000 L No gain or loss C) Loss of $1.000 D) Loss of $2,000 Navajo Mining Company purchased a mine in 2013 for $3.400.000. It was estimated that the mine contained 200,000 tons of one and that the mine would be worthless after all of the one was extracted. The company extracted 25.000 tons of are in 2013 and 30.000 tons of ore in 2014. What is depletion expense for 2013? A) $340,000 B) 5680.000 C) 5510.000 D) $425,000 15) Azimuth Company purchases a small business for $500,000. The market value of the business's assets are $850,000, and the market value of the liabilities are $400,000. How much goodwill should Azimuth record? A) None B) $500,000 $450,000 D) $50,000 Chapter 10 16) Which of the following is a characteristic of a current liability? A) A current liability is a liability that is due within 30 days. BA current liability is a liability that is due within one year or one operating cycle, whichever is longer. C) A current liability is a liability that is due within 10 days. D) A current liability is a liability that is duc in longer than a one-year period, or one operating cycle. 17) Which of the following occurs when a company records accrued interest expense on a note payable? A) Interest expense is credited B) Note payable is credited. C) Cash is debited. Interest payable is credited. 18) Which of the following is a liability created when a company receives cash for services to be provided in the future? ..) Uncamned revenue B) Accrued liability C) Service revenue D) Estimated warranty payable 19Sales revenue for a sporting goods store amounted to $215.000 for the current period. All sales are on account and are subject to a sales tax of 7%. Which of the following would be included in the journal enteve Page 3 of 6 At the time it was scrapped it was fully depreciated. What was the effect of D) equal to the market value 13) Albatross Services scrapped a van. The van original Services scrapped a van. The van originally cost $40.000 had an estimated salvage value of zero and an estimated life of 10 years. At the time it was sched, it was fully deprec scrapping the van? A) Gain of $2.000 LNo gain or loss C) Loss of S1.000 D) Loss of $2,000 14) Navajo Mining Company purchased a mine in 2013 for $3.400.000. It was estimated that the mine contained 200,000 tons of ore and that the mine would be worthless after all of the one was extracted. The company extracted 25.000 tons of are in 2013 and 30.000 tons of ore in 2014 What is depletion expense for 2013? A) $340,000 B) $680000 C) 5510,000 D) $425,000 15) Azimuth Company purchases a small business for $500,000. The market value of the business's assets are $850,000, and the market value of the liabilities are 5400,000. How much goodwill should Azimuth record? A) None B) 5500,000 $450,000 D) $50,000 Chapter 10 16) Which of the following is a characteristic of a current liability? A) A current liability is a liability that is due within 30 days. BA current liability is a liability that is due within one year or one operating cycle, whichever is longer. C) A current liability is a liability that is due within 10 days. D) A current liability is a liability that is due in longer than a one-year period, or one operating cycle. 17) Which of the following occurs when a company records accrued interest expense on a note payable? A) Interest expense is credited B) Note payable is credited C) Cash is debited Interest payable is credited. 18) Which of the following is a liability created when a company receives cash for services to be provided in the future? .) Unearned revenue B) Accrued liability C) Service revenue D) Estimated warranty payable 19) Sales revenue for a sporting goods store amounted to $215,000 for the current period. All sales are on Account and are subject to a sales tax of 7%. Which of the following would be included in the journal entre Page 3 of 6 sales revenue for 2013 SROO 000). Theoducts were sold with a six-month management estimate the cost of the warranty will be equal to 3% of sales included in the entry to record the actual amounts paid out as a result of 26) Booker Company reported sales revenue for 2013 warranty Members of Booker's management estimate the co revenue. Which of the following is included in the entry to recor warranty claims? debit to Estimated warranty payable for the actual amount of payment B) A credit to Estimated warranty payable for $24,000 C A debit to Estimated warranty payable for $24.000 D) A debit to Warranty expense for the actual amount of payments 27) Are Digital starts th Digital starts the year with balances in its Estimated warranty payable account, and Warranty, expense account as shown below. During the year, there were S190.000 of sales and $3,200 of warranty repair payments, Arc Digital estimates warranty expense at 1.5% of sales. Enimated Waranty payable Warranty expense 1,400 At the end of the year, what was the balance in the Estimated warranty payable account? A) $2,850 debit F) 51.050 credit C) $3,200 debit D) $1,420 debit 28) Sue works 46 hours at her job during the week. She is paid $13.30/hour and receives overtime at the rate time-and-one-half for hours worked over forty. Sue is taxed for federal income taxes at 15% and 7.65% for OASDI and Medicare. All of her income is taxable. What is Sue's net pay? A) $651.70 B) $147.61 ) 5504.08 D) $532.00 Answer: 29) Good internal controls over payroll would include all of the following EXCEPT: A accounting for payroll should be separate from hiring and firing of employees. B) disbursement of paychecks should be separate from the function of maintaining payroll records. C) employees should clock in and out to insure accuracy of work hours. D) cash receipts from customers should be separated from the accounting for accounts receivable. 30) Which of the following is a reason that many companies maintain two payroll bank accounts? A) To avoid writing a paycheck to a fictitious person B) To prove an employee's hours worked. C) To separate the duties of human resources personnel and accounting personnel. D) To make bank reconciliations simpler
