财务会计习题.doc

1Merchandise inventory is classified on the balance sheet as a a.Current Liabilityb.Current Assetc.Long-Term Assetd.Long-Term LiabilityANS:BDIF:1OBJ:022.The primary difference between a periodic and perpetual inventory system is that a a.periodic system determines the inventory on hand only at the end of the accounting periodb.periodic system keeps a record showing the inventory on hand at all timesc.periodic system provides an easy means to determine inventory shrinkaged.periodic system records the cost of the sale on the date the sale is madeANS:ADIF:3OBJ:023.A company, using the periodic inventory system, has merchandise inventory costing $140 on hand at the beginning of the period. During the period, merchandise costing $400 is purchased. At year-end, merchandise inventory costing $180 is on hand. The cost of merchandise sold for the year is a.$720b.$550c.$360d.none of the aboveANS:CDIF:4OBJ:024. When the perpetual inventory system is used, the inventory sold is shown on the income statement as a.cost of merchandise soldb.purchasesc.purchases returns and purchasesANS:ADIF:1OBJ:025.If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customers account as uncollectible?a.Uncollectible Accounts Expenseb.Accounts Receivablec.Allowance for Doubtful Accountsd.Interest ExpenseANS:BDIF:1OBJ:046.Allowance for Doubtful Accounts is listed on the balance sheet under the caption a.owners equityb.investmentsc.fixed assetsd.current assetsANS:DDIF:1OBJ:047.On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the a.Uncollectible accounts expense for the yearb.total of the accounts receivables written-off during the year c.total estimated uncollectible accounts as of the end of the yeard.sum of all accounts that are past due.ANS:CDIF:2OBJ:048.Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers accounts indicates doubtful accounts of $12,900. Which of the following entries records the proper provision for doubtful accounts?a.debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000b.debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense, $14,000c.debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense, $11,800d.debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800ANS:DDIF:3OBJ:049.Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts?a.debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400b.debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400c.debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400d.debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400ANS:DDIF:3OBJ:0410.In credit terms of 1/10, n/30, the 1 represents the a.number of days in the discount periodb.full amount of the invoicec.number of days when the entire amount is dued.percent of the cash discountANS:DDIF:1OBJ:0311.Merchandise with a sales price of $500 is sold on account with term 2/10, n/30. The journal entry to record the sale would include a a.debit to Cash for $500b.Debit to Sales Discounts for $10c.Credit to Sales for $500d.Debit to Accounts Receivable for $490ANS:CDIF:2OBJ:0312.Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $15,000. The seller paid transportation costs of $1,000 and issued a credit memorandum for $5,000 prior to payment. What is the amount of the cash discount allowable?a.$160b.$150c.$140d.$100ANS:DDIF:3OBJ:0313.If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customers account as uncollectible?a.Uncollectible Accounts Payableb.Accounts Receivablec.Allowance for Doubtful Accountsd.Uncollectible Accounts ExpenseANS:DDIF:2OBJ:0514.If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customers account as uncollectible?a.Uncollectible Accounts Expenseb.Accounts Receivablec.Allowance for Doubtful Accountsd.Interest ExpenseANS:BDIF:1OBJ:0515.One of the weaknesses of the direct write-off method is that it a.understates accounts receivable on the balance sheetb.violates the matching principlec.is too difficult to use for many companiesd.is based on estimatesANS:BDIF:2OBJ:0516.The amount of the promissory note plus the interest earned on the due date is called the a.realizable valueb.maturity valuec.face realizable valueANS:BDIF:1OBJ:0617.A 60-day, 10% note for $8,000, dated April 15, is received from a customer on account. The face value of the note is a.$8,600b.$7,200c.$8,800d.$8,000ANS:DDIF:1OBJ:0618.A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is a.$10,000b.$10,300c.$450d.$9,550ANS:BDIF:3OBJ:0619.On November 1, Blazer Company receives a 6% interest bearing note from Ram Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Blazer should record interest revenue of a.$0b.$100c.$200d.$600ANS:CDIF:3OBJ:0720.A $6,000, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is a.debit Cash, $6,060; credit Notes Receivable, $6,060b.debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Receivable, $60c.debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060d.debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue, $60ANS:DDIF:3OBJ:0721.Receivables are usually listed on the balance sheet after Cash in what order?a.Accounts Receivable, Notes Receivable, Interest Receivableb.Interest Receivable, Notes Receivable, Accounts Receivablec.Notes Receivable, Interest Receivable, Accounts Receivabled.Notes Receivable, Accounts Receivable, Interest ReceivableANS:DDIF:2OBJ:0822.The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest iscalled a.first-in, first-outb.last-in, first-outc.average costd.retail methodANS:BDIF:2OBJ:0323.Under which method of cost flows is the inventory assumed to be composed of the most recent costs?a.average costb.last-in, first-outc.first-in, first-outd.weighted averageANS:CDIF:2OBJ:0324.The inventory data for an item for November are Nov. 1 Inventory.20 units at $20 4 Sold. 10 units 10 Purchased.30 units at $21 17 Sold. 20 units 30 Purchased.10 units at $22Using the perpetual system, costing by the first-in, first-out method, the last-in, first-out method ，what is the cost of the merchandise inventory of 30 units on November 30?a.$640，630b.$610, 620c.$620，610d.$630, 640ANS:ADIF:3OBJ:0425.During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is a.FIFOb.LIFOc.average costd.weighted averageANS:BDIF:5OBJ:0626.Accumulated Depreciation a.is used to show the amount of cost expiration of intangiblesb.is the same as Depreciation Expensec.is a contra asset accountd.is used to show the amount of cost expiration of natural resourcesANS:CDIF:1OBJ:0127.A building with an appraisal value of $137,000 is made available at an offer price of $142,000. The purchaser acquires the property for $30,000 in cash, a 90-day note payable for $40,000, and a mortgage amounting to $60,000. The cost basis recorded in the buyers accounting records to recognize this purchase is a.$137,000b.$142,000c.$130,000d.$100,000ANS:CDIF:3OBJ:0128 A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of a.$ 96,000b.$108,000c.$102,000d.$110,000ANS:DDIF:3OBJ:0129.A fixed assets estimated value at the time it is to be retired from service is called a.book valueb.residual valuec.market valued.carrying valueANS:BDIF:1OBJ:0230.All of the following below are needed for the calculation of depreciation except a.costb.residual valuec.estimated lifed.book valueANS:DDIF:1OBJ:0231.A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?a.$8,000b.$20,000c.$12,000d.$21,667ANS:BDIF:3OBJ:0232.Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?a.$30,000b.$32,500c.$34,000d.$40,000ANS:ADIF:3OBJ:0233.A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining-balance method at double the straight-line rate?a.$15,000b.$30,000c.$16,250d.$32,500ANS:CDIF:3OBJ:0234.The depreciation method that does not use residual value in calculating the first years depreciation expense is a.straight-lineb.units-of-productionc.declining-balanced.none of the aboveANS:CDIF:1OBJ:0235.When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry a.debit Accumulated Depreciation; credit Machineryb.debit Machinery; credit Accumulated Depreciationc.debit Cash; credit Accumulated Depreciationd.debit Depreciation Expense; credit Accumulated DepreciationANS:ADIF:3OBJ:0436.When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:a.debit Cash and Accumulated Depreciation; credit Machineryb.debit Machinery; credit Cash and Accumulated Depreciationc.debit Cash and Machinery; credit Accumulated Depreciationd.debit Cash and Depreciation Expense; credit Accumulated DepreciationANS:ADIF:3OBJ:0437.On June 8, Acme Co. issued an $80,000, 6%, 120-day note payable to Still Co. What is the due date of the note?a.October 8b.October 7c.October 6d.October 5ANS:CDIF:1OBJ:0238.On June 8, Acme Co. issued an $80,000, 6%, 120-day note payable to Still Co. What is the maturity value of the note?a.$80,100b.$84,800c.$81,600d.$81,200ANS:CDIF:3OBJ:0239.On June 8, Acme Co. issued an $80,000, 6%, 120-day note payable to Still Co. Assume that the fiscal year of Acme Co. ends June 30. What is the amount of interest expense recognized by Acme in the current fiscal year?a.$293.33b.$400.00c.$391.11d.$1,600.00ANS:ADIF:3OBJ:0240.On June 8, Acme Co. issued an $80,000, 6%, 120-day note payable to Still Co. Assume that the fiscal year of Still Co. ends June 30. What is the amount of interest revenue recognized by Still in the following year?a.$1,200.00b.$1,208.89c.$1,306.67d.$1,600.00ANS:CDIF:3OBJ:0241.On June 8, Acme Co. issued an $80,000, 6%, 120-day note payable to Still Co. Assume that the fiscal year of Acme Co. ends June 30. Which of the following relationships is true?a.Acme is the creditor and credits Accounts Receivableb.Still is the creditor and debits Accounts Receivablec.Still is the borrower and credits Accounts Payabled.Acme is the borrower and debits Accou