Stormfinder Co.s allowance for uncollectible accounts was $92,000 at the END of 2017 and $90,000 at the END of 2016. For the year ended December 31, 2017, Linn reported bad debt expense of $13,000 in its income statement. What amount did Stormfinder debit to the appropriate account in 2017 to write off actual bad debts?

a. $2,000

b. $11,000

c. $13,000

d. $15,000

A Company buys a land for $15,000 in 2015. In 2019, the land is valued at $60,000. The land would appear on the companys balance sheet in 2019 at:

a) $15,000

b) $60,000

c) $45,000

d) $75,000

Let's say a company declared a dividend, but did not pay it for one month: how is the company's working capital was affected at the time the dividend was declared?

a) increases

b) no effect

c) decreases

d) cannot be determined until the cash is paid.

The purpose of distinguishing current from non-current items on a balance sheet is to:

a) aid management in controlling expenses

b) provide a measure of the relative profitability of the business

c) indicate the ability of the company to meet its obligations as they come due

d) simplify the preparation of financial statements

Which of the following would cause the trial balance to be out of balance?

a. A debit entry was made to the debit side of a wrong account.

b. A $2,000 transaction was recorded as a $200 debit and $200 credit.

c. A payment of an account payable was recorded as a debit to accounts payable and a debit to cash.

d. None of the items in (a), (b), or (c) would result in an unbalanced trial balance.

Assume a company pays a cash dividend on January 31, 2020. The dividend was previously recorded in the company records on December 31,2019 when it was declared. At the time the cash dividend is paid on January 31, 2020 what will be the effect on the following:

Working Capital -------Quick Ratio

a) Decrease -------decrease

b) No effect ------no effect

c) No effect -------increase

d) Decrease --------increase

Shellfield Co. had accounts receivable of $200,000 at 1/1/19. The only additional

transactions affecting accounts receivable during 2019 were credit sales of $600,000 and cash

collections of accounts receivable in the amount of $500,000. The accounts receivable turnover at 12/31/19 is

a. 2.0

b. 3.0

c. 2.4

d. none of the above