QUESTION 7

Calculate the total interest that will be received on a $4,000, 6% note receivable dated April 10 with a maturity date of July 9.

	a.	$24
	b.	$60
	c.	$240
	d.	$18

QUESTION 9

The "Lower-or-Cost-or Market (LCM) rule requires inventory values to be adjusted upward if customers are willing to pay more than what the company originally paid for the merchandise.

True

False

QUESTION 11

The net realizable value of Accounts Receivable represents the company's best estimate of what it expects to collect on it's accounts receivable. It equals the total Accounts Receivable less an allowance for doubtful accounts.

True

False

QUESTION 13

1. The main purpose of recording depreciation is to:

   	1.	allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue.
   	2.	estimate the remaining useful life of the asset.
   	3.	report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date.
   	4.	estimate the current replacement cost of the asset.