1. Which of the following asset will not be depreciated over its service life?
2. Buildings.
3. Furniture.
4. Land.
5. Equipment.

1. A positive attribute included in goodwill will include:
2. Land.
3. Superior management.
4. Harmonization of accounting standards.
5. The book value of plant and assets.

1. Natural resources:
2. Include standing timber, mineral deposits, and oil and gas fields.
3. Have no physical substance.
4. Are depreciated.
5. Include trademarks and patents.

1. Any assets invested by a particular partner in a partnership
2. Can be used only by the investing partner
3. Do not become a partnership asset but instead remain with the partner
4. Are the basis for all profit sharing
5. Become the property of all the partners.

1. Mutual agency is defined as:

a.a mutual agreement

b.the right of all partners to represent the company in normal business operations

c.a synonym for partnership

d.a partnership between two partnerships

1. Which one of the following would not be considered in the development of a partnership agreement?
2. Profit and loss levels
3. Processing disputes (ANS)
4. Stock options
5. Asset contributions

1. Which of the following would not be considered an intangible account?
2. Goodwill.
3. Patent.
4. Inventory. (ANS)
5. Copyright.

Question 1

Below, preceded by identifying numbers are items to be used by Audible Company in preparing its monthly bank reconciliation.

Indicate where each item would appear on Audible Company's bank reconciliation by placing the letter corresponding to your answer in the space provided.

There is no need to do the actual bank reconciliation or perform any calculations.

1. Add to bank balance.
2. Deduct from bank statement balance.
3. Add to book balance.
4. Deduct from book balance.
5. Not shown on reconciliation.

1. _________ A check paid by the bank at its correct amount of $190 but recorded in error on Audible books at $109. A difference of $81.
2. _________ Interest in the amount of $60 was earned on the account.
3. _________ The bank monthly service charge amounted to $25.
4. _________ Audible recordeda check received from a customer as $180; the correct amount of the check as indicated on the bank statement is $108.
5. _________ A check for $600, listed as outstanding on the previous month's reconciliation is still outstanding.
6. _________A customer's check for $150 was returned by the bank as NSF.
7. _________ A accompanying memo indicating the bank had collected a note receivable for $10,000 for Audible Company and deposited the proceeds in the company's account.
8. _________ A check for $250 listed as outstanding on the precious month's reconciliation was paid by the bank.
9. _________ A deposit for $15,250 made late the last day of the month did not appear on the bank statement.
10. _________ Included with the canceled checks was a check for $850 paid by the bank out of Audible's account .The check belonged to another company.