PART I: Multiple Choice (Cont.) 14) The interest accrued on S6.500 at 6% for 60 days is: A. $ 36 B. $ 42. C. $ 65 D. $180 15) A method of estimating bad debts expense that involves a detailed examination of outstandirng accounts and their length of time past due is the: A. Direct write-off method. B. Aging of accounts receivable method. C. Percentage of sales method. D. Aging of investments method. 16) An accounting procedure that (1) estimates and reports bad debts expense from credit sales during estimated the period the sales are recorded, and (2) reports accounts receivable at the amount of cash to be collected is the: A. Allowance method of accounting for bad debts C. Adjustment method for uncollectible debts. D. Direct write-off method of accounting for bad debts 17) Plant assets are: A. Tangible assets used in the operation of a business that have a useful life of more than one accounting period. B. Current assets. C. Held for sale. D. Intangible assets used in the operations of a business that have a useful life of more than one accounting period 18) Depreciation: A. Measures the decline in market value of an asset B. Measures physical deterioration of an asset. C. Is the process of allocating to expense the cost of a plant asset. D. Is an outflow of cash from the use of a plant asset. A. Assets that increase the usefulness of land, and like land, are not depreciated. B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation. C. Included in the cost of the land account. D. Expensed in the period incurred )Land improvements are: he total cost of an asset less its accumulated depreciation is called: A. Historical cost. B. Book value. C. Present value D. Current (market) value