Question 21pts

A new engine is installed for $2,750 in a work truck. This expenditure would be an example of a(n) ________ because it extends the useful life of the truck.

extraordinary repair

maintenance expense

prepaid expense

ordinary repair

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Question 31pts

State unemployment compensation tax is an example of a(n) ________.

type of employee compensation

optional deduction

employer-paid payroll tax

required deduction

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Question 41pts

When a new partner is added to a partnership, the old partnership must go through ________ and a new partnership is created.

suspension

termination

liquidation

dissolution

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Question 51pts

Generally accepted accounting principles require an entity to record a contingent liability in the financial statements when it is ________ that the liability will be incurred and the amount can be estimated.

probable

remote

likely

reasonably possible

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Question 61pts

The ________ depreciation method would yield the lowest net income during the first year of an asset's use.

units-of-production

double-declining-balance

straight-line

150% declining balance

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Question 71pts

A piece of manufacturing equipment is purchased on January 1st, 20X1 for $75,000. The equipment is expected to have a useful life of 10 years. At the end of 10 years, management thinks they can sell the machine for scrap metal for $3,500. It is expected that the machine will be able to produce 250,000 units. In the first year, the machine produced 26,432 units.If the units-of-production method is used, how much depreciation will be recorded in year one?

$7,150.00

$7,500.00

$7,559.55

$7,929.60

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Question 81pts

A(n) ________ is a partnership having at least two classes of partners, one that takes primary responsibility and another class that has limited liability for partnership debts.

S corporation

limited liability company

general partnership

limited partnership

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Question 91pts

A patent is considered a(n) ________.

tangible asset

natural resource

intangible asset

real asset

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Question 101pts

Drew earns an hourly wage of $22.00. He is paid overtime at a rate of 1.5 times his regular pay for any hours he works over 40 hours per week. Drew gets paid every two weeks. The following information is used to calculate his withholding deductions.

Insurance

$60.00

Federal withholding rate

15%

State withholding rate

6%

Social Security Tax withholding rate

5.65%

Charitable deductions

$5.00

For the two week period ended June 10, 20X2, Drew worked 92 hours and earned at least 40 hours in each week. What is Drew's required deductions for this period?

$574.57

$539.40

$469.04

$634.57

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Question 111pts

Drew earns an hourly wage of $22.00. He is paid overtime at a rate of 1.5 times his regular pay for any hours he works over 40 hours per week. Drew gets paid every two weeks. The following information is used to calculate his withholding deductions.

Insurance

$60.00

Federal withholding rate

15%

State withholding rate

6%

Social Security Tax withholding rate

5.65%

Charitable deductions

$5.00

For the two week period ended June 10, 20X2, Drew worked 92 hours and earned at least 40 hours in each week. What is Drew's net pay for this period?

$1,516.43

$1,581.43

$1,419.60

$1,484.60

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Question 121pts

A partnership's balance sheet differs from a sole proprietorship balance sheet in that a partnership's balance sheet ________.

shows the allocation of income or loss

reports owners' equity in the form of capital accounts for partners

reports common stock and additional paid-in capital

reports total inventory

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Question 131pts

Stanley Company manufactures lamps. They provide one-year warranties on all of their products. In 20X2, they had $450,000 in net sales. Stanley Company estimates that 2.5% of net sales will require warranty repairs. The estimated warranty payable account had a balance of $13,500 on January 1, 20X2. Throughout the year, Stanley Company paid $14,100 of warranty claims. What will Stanley Company report for estimated warranty payable on December 31, 20X2?

$14,100

$10,650

$24,750

$11,250

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Question 141pts

A partnership values a partner's capital contribution of property at ________.

book value

depreciable cost

historical cost

current market value

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Question 151pts

Assuming cash is available, the last step in liquidating a partnership is to ________.

distribute cash to partners based on their capital balances

allocate gain or loss to the partners' capital accounts

pay all partnership liabilities

distribute cash to partners based on their profit-and-loss ratio