Question
What is the purpose of keeping a change fund in a business? Answer a. to pay balance to customers b. to meet smaller expenses in
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What is the purpose of keeping a change fund in a business?
Answera. to pay balance to customers
b. to meet smaller expenses in the business
c. to pay daily wages
d. none of the above
2 points
Question 2
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In a petty cash register any amount of cash gained or lost through errors is called a
Answera. cash over account.
b. cash short account.
c. petty cash account.
d. cash short & over account.
2 points
Question 3
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The total cash in a cash register drawer minus the change fund is:
Answera. the total sales.
b. the total cash sales from the cash register tape.
c. the credit sales.
d. the change fund.
2 points
Question 4
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The original cost of an asset minus the accumulated depreciation is known as the:
Answera. book value.
b. market value.
c. original value.
d. depreciation.
2 points
Question 5
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The amount to be depreciated divided by the estimated useful life comprise the:
Answera. annual depreciation expenses.
b. accumulated depreciation.
c. partial depreciation.
d. market value of an asset.
2 points
Question 6
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What will the annual depreciation be under the straight line method if the amount to be depreciated is $50,000, and the estimated useful life of an asset is 10 years?
Answera.$50,000
b. $20,000
c.$10,000
d.$5,000
2 points
Question 7
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Which accounts receivable account can a business not collect?
Answera.Uncollectible Account
b.Accounts Receivable Account
c. Accounts Payable Account
d. Expense Account
2 points
Question 8
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Which account is to be debited to write off uncollectible receivable?
Answera. accounts receivable account
b. accounts payable account
c. uncollectible expense account
d. cash in bank account
2 points
Question 9
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This method of accounting for uncollectible accounts matches the estimated uncollectible account expense with sales made during the same period:
Answera. Direct write off
b. Allowance
c. Percentage of net sales
d. Aging of Accounts Receivable
2 points
Question 10
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What is the maturity value of a bill whose principal is $50,000, interest rate is 8%, and term is 60 days?
Answera. $50,657.52
b. $50,000
c. $657.52
d. $60,657.52
2 points
Question 11
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The cost of inventory at the end using LIFO is $22,560 and the market price is $20,530. Using the lower-of-cost-or-market rule, what inventory cost should appear in the financial statement?
Answera. $22,560
b. $20,530
c. $43,090
d. $2,030
2 points
Question 12
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On July 7, Mr. Rex signed a 90-day, 10% note with Federal Bank for $20,000. What will be the note's maturity date?
Answera. October 5
b. September 5
c. September 30
d. July 7
2 points
Question 13
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The sales total is $56,000, sales discount is $1,000, sales return is $5,000, and the estimated percentage of uncollectible accounts is 1.5%. What will be the final uncollectible amount?
Answera. $5,000
b. $6,000
c. $750
d. $7,500
2 points
Question 14
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What will be the depreciation, via the straight line method, if the cost of a plant is $43,250, estimated disposal value is $3,250, and the estimated useful life of plant is five years?
Answera. $40,000
b. $4,000
c. $3,250
d. $8,000
2 points
Question 15
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If a loan's principal is $40,000, interest rate is 8%, and the term is 90 days, what will the interest payable be on the maturity date?
Answera. $789.04
b. $889.04
c. $989.04
d. $689.04
Match the word with the best choice below.
1, | direct write-off method | ||||||||||
2. | percentage of net sale method | ||||||||||
3. | aging of accounts receivable method | ||||||||||
4. | perpetual inventory system | ||||||||||
5. replenish cash fund
|
Match the word with the best choice below.
1.periodic inventory system
2.FIFO
3.notes payable
4. notes receivable
5. notes receivable
A. | no interest rate indicated on the note |
B. | promissory note issued to creditors |
C. | first item in is first item sold |
D. | updating the inventory after a physical verification of merchandise |
E. | promissory note accepted from credit customer |
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