Multiple Choice Questions (2 points each) Which of the following intangible assets does not convey a specific le 11. privilege? gal right or A. Copyrights B. Franchises C. Goodwil D. Trademarks The average number of days to collect accounts receivable is computed by dividing 12. A. Accounts Receivable by net income. B. 365 by the accounts receivable turnover ratio. C. Accounts Receivable by 365. D. Sales divided by Accounts Receivable. 13. On January 1, 2011, Frankfort Company made a basket purchase including land, a building and equipment for $760,000. The appraised values of the assets are $40,000 for the land, $680,000 for the building and $80,000 for equipment. Frankfort uses the double declining balance method of depreciation for the equipment which is estimated to have a useful life of five years and a salvage value of $10,000. The depreciation expense for 2011 for the equipment is: A. $13,200. B. $20,000. C. $30,000 D. $30,400. 14. How would accountants estimate the amount of a company's uncollectible accounts expense? A. Consider new circumstances that are anticipated to be experienced in the future. B. Compute as a percentage of credit sales. C. Consult with trade association and business associates. D. All of these answer choices are correct. The Garrett Company uses the perpetual inventory system. Although its inventory records indicated $18,000 in the inventory, a physical count showed only $16,250. Which of following answers indicates the effect of the necessary write-down entry? 15. - Net Inc. Exp. I Inso l I (,750) INA (,750) | NA 17s0 1(1.7s0) | NA A. (1,750) I INA I I (1,750) | NA 11750 I l1.750) | NA 1750 C. 1620 NA 16250 1 16,2350 NA 1 16250 16,250 A C. NA B. NA I 1750 I a.750) NA INA I ( (18,000) NA (18,000)(18,000) (18,000) | INA D. (18,000) I INA 1(