Need Help solving as much problems of these as possible. Intermediate 1 Accounting. I only have ONE HOUR to complete. Timed. Help

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1.Only extermally purchased goodwill should be recorded.

True

False

2 points

QUESTION 2

1.GAAP allows a convention for depreciation such as taking a half-year's depreciation in the first year and last year as long as it is used consistently.

True

False

2 points

QUESTION 3

1.Match the following terms and descriptions.

-A.B.C.D.E.F.G.H.I.J.

Bonds that are unsecured by specific assets of the corporation.

-A.B.C.D.E.F.G.H.I.J.

Bonds that pay no annual interest.Both interest and principal are paid at maturity.

-A.B.C.D.E.F.G.H.I.J.

Bonds for which ownership is not recorded by the company.Transfer of ownership requires merely physical delivery of the bonds to the purchaser.

-A.B.C.D.E.F.G.H.I.J.

Bonds which can be exchanged for stock in the corporation at a given exchange rate.

-A.B.C.D.E.F.G.H.I.J.

The par or maturity value of a bond.

-A.B.C.D.E.F.G.H.I.J.

The market rate of interest when the bonds are issued.

-A.B.C.D.E.F.G.H.I.J.

The interest rate set by the company issuing the bonds and expressed as a percentage of par value.

-A.B.C.D.E.F.G.H.I.J.

An adjunct account used when bonds are issued above par value.

-A.B.C.D.E.F.G.H.I.J.

An account used to record the difference between par and market value of a bond when the market rate of interest is higher than the stated rate.

-A.B.C.D.E.F.G.H.I.J.

The process of allocating part of a premium or discount from the issuance of bonds to the current accounting period.

A.

Amortization

B.

Bearer bonds

C.

Convertible bonds

D.

Debenture bonds

E.

Deep-discount bonds

F.

Discount on Bonds Payable

G.

Effective rate

H.

Face value

I.

Nominal rate

J.

Premium on Bonds Payable

10 points (Extra Credit)

QUESTION 4

1.Inventory holding losses are shown separately and do not become part of cost of goods sold when the allowance method is used for lower-of-cost-or-market inventory costing.

True

False

2 points

QUESTION 5

1.An annuity table is used to calculate present value if equal payments are to be made over equal periods such as monthly or quarterly.

True

False

2 points

QUESTION 6

1.Calculate the value of the ending inventory using Dollar-Value LIFO method.The beginning inventory was $35,200 with an index of 1.1.Ending inventory at current year prices is $42,600.The index at the end of the year is 1.2.Key in your answer as a whole number without a $ comma or decimal.

5 points

QUESTION 7

1.The two primary qualaities that make accounting information useful for decision making are

comparability and consistency.

relevance and reliability.

materiality and timeliness.

reliability and comparability.

2 points

QUESTION 8

1.LIFO yields the same inventory value under both periodic and perpetual procedures.

True

False

2 points

QUESTION 9

1.What is the lower-of-cost-or-market value ofthe followinginventory item:

Cost = $6.50,Selling price = $9.20,Selling expense = $0.90,Normal profit margin = $2.10,Replacement cost = $6.15.

$8.30

$6.20

$6.50

$6.15

5 points

QUESTION 10

1.A term of 20 periods and rate of 2% should be used to calculate the value of a deposit at 8% annual interest for 5 years if interest is compounded quarterly.

True

False

2 points

QUESTION 11

1.Impaired assets are adjusted for the loss of value by adding the impairment to the accumulated depreciation for the asset.

True

False

2 points

QUESTION 12

1.If accounts receivable are factored with recourse, no contingent liability results since the factor bears the burden of bad debts.

True

False

2 points

QUESTION 13

1.The market price for a bond issue is equal to the present value of all future payments including the periodic interest payments and the face value of the bonds.

True

False

2 points

QUESTION 14

1.The separate entity assumption is used for all forms of business ownership even though the business might not be a legally separate entity.

True

False

2 points

QUESTION 15

1.If the market rate is lower than the coupon rate, bonds will be sold at a premium.

True

False

2 points

QUESTION 16

1.Costs that can be directly attributed to the development of a new product should be capitalized as part of the product's patent valuation.

True

False

2 points

QUESTION 17

1.Which of the following is a current liability?

Preferred dividends in arrears on cumulative preferred stock.

A dividend payable in the form of additional shares of stock (a stock dividend).

A cash dividend payable to preferred stockholders.

All of these are current liabilities.

2 points

QUESTION 18

1.An advantage of dollar-value LIFO is that inventory can be kept at FIFO cost throughout the year and converted to LIFO at the end of the year.

True

False

2 points

QUESTION 19

1.Blake Co. has net sales of $530,000, anaccounts receivable balance of $62,000, and a debit balance of $600 in its allowance for bad debts account at the end of the year. What is the amount of the adjustment for bad debts expense assuming (a) bad debts are estimated at 1.2% of net sales, and (b) 3% of the balance in accounts receivable is estimated to be uncollectible?

(a) $6,360and(b)$1,860

(a) $6,360and(b) $2,460

(a) $6,960and(b) $2,460

(a) $5,760and(b) $1,860

5 points

QUESTION 20

1.Dawson Corporation transferred $80,000 of accounts receivable to a factor without recourse.The factor charged a 12% fee and the companies agreed that $4,000 is a rreasonable estimate for returns and allowances on the accounts. Calculate the amount of cash Dawson received in the transaction.Enter your answer as a whole number without a $ comma or decimal.

5 points

QUESTION 21

1.All intangible assets are amortized over their useful lives.

True

False

2 points

QUESTION 22

1.Straight-line method should be used to depreciate assets when time is the most important factor.

True

False

2 points

QUESTION 23

1.Losses but not gains are recorded on the disposal of assets when composite depreciation is used.

True

False

2 points

QUESTION 24

1.Indicate whether each of the following should be included in Cash by selecting YES or NO.

-A.B.

Currency and coin in a change fund.

-A.B.

Customers' checks not yet deposited.

-A.B.

A customer's chdck returned for insufficient funds.

-A.B.

Money in a six-month certificate account.

-A.B.

Postal money order.

A.

YES

B.

NO

5 points

QUESTION 25

1.An overdraft in one bank account can be offset against a positive balance in another account if the accounts are with the same bank.

True

False

2 points

QUESTION 26

1.Assuming a current ratio of 2:1, what effect would each of the following transactions have on the ratio?

-A.B.C.

Wrote off Accounts Receivable as bad debts using allowance method.

-A.B.C.

Paid off a short-term note payable.

-A.B.C.

Purchased merchandise on account.

-A.B.C.

Purchased equipment by issuing a 5-year note payable.

A.

Increase

B.

Decrease

C.

No effect

8 points

QUESTION 27

1.Determine the depreciation for the second year using double declining balance method for machinery which cost $82,000, has an estimated life of 8 years and salvage value of $5,000. Enter your answer as a whole number without a $ comma or decimal.

5 points

QUESTION 28

1.Long-term debt that matures within one year and is to be converted into stock should be reported

as a current liability.

in a special section between liabilities and stockholders' equity.

as noncurrent without a note to the statement.

as noncurrent and accompanied with a note explaining the method to be used in its liquidation.

3 points

QUESTION 29

1.Match each of the following expenditures with the account to which it should be charged.

-A.B.C.D.E.F.

Property taxes in arrears assumed in connection with the purchase of land for a building site.

-A.B.C.D.E.F.

Installation costs of new equipment.

-A.B.C.D.E.F.

Lights installed in a parking lot.

-A.B.C.D.E.F.

Repair costs of equipment damaged during installation.

-A.B.C.D.E.F.

Interest during construction on money borrowed for a new building.

-A.B.C.D.E.F.

Interest on loan to purchase new equipment.

-A.B.C.D.E.F.

Sales taxes on purchase of equipment.

-A.B.C.D.E.F.

Clearing and terracing land to be used as a factory site.

-A.B.C.D.E.F.

Trial run of new equipment.

-A.B.C.D.E.F.

Major repair of old equipment estimated to extend the useful life by three years.

A.

Land

B.

Building

C.

Land Improvements

D.

Equipment

E.

Accumulated Depreciation - Equipment

F.

an expense account

10 points

QUESTION 30

1.In classifying the elements of financial statements, the primary distinction between revenues and gains is

the materiality of the amounts involved.

the likelihood that the transactions involved will recur in the future.

the nature of the activities that gave rise to the transactions involved.

the costs versus the benefits of the alternative methods of disclosing the transactions involved.

2 points

QUESTION 31

1.Salvage value is ignored when calculating depreciation using units-of-production method.

True

False

2 points

QUESTION 32

1.The direct write-off method of accounting for bad debts is preferred over the allowance method because it provides a better match of revenue and expense for the period.

True

False

2 points

QUESTION 33

1.When using conventional retail (lower-of-cost-or-market average cost) method to estimate the value of inventory, the amounts included in the calculation of thecost to retail ratio

includes beginning inventory, net purchases and net markups, but not markdowns.

includes beginning inventory, net purchases, net markups, and net markdowns.

includes net purchases, net markups, and net markdowns, but not beginning inventory.

includes beginning inventory and net purchases, but not markups or markdowns.

3 points

QUESTION 34

1.Only discounts actually taken should be subtracted from the cost of assets.

True

False

2 points

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