Acc 201

Which of the assets listed below is considered the most liquid

cash

Assuming 5000 oils was extracted from the land in 2021, how much depletion would be recorded

1575000

Refer to Fabian Woodworks If the company uses the units-of-production method, what is the depreciation rate per hour for the equipment

0.10

Refer to Fabian Woodworks. What amount of depreciation expense over the 5 year life of equipment

10000

Refer to Fantasy Cruise Lines. What will be the book value of the ship after 10 years

100000

During a period of information purchase prices, which inventory costing method will yield the lowest cost of goods sold

FIFO

Which inventory cost flow method assigns the cost of the most recent item purchased to ending inventory

FIFO

Which inventory cost flow method assigns the cost of the mist recent items purchased to cost of goods sold

LIFO

A check returned by a bank because the issuers cash balance could not cover the check is called an

NSF check

Which of the following is the correct entry to establish a petty cash fund in the amount of 300

Petty Cash Fund 300 cash 300

Refer to Fernbank Farms. When calculating depreciation for 2021, the company's accountant should

What gain or loss will be reported on the income statement for the sale of the machine for the year ended December 31

having one employee prepare company checks and a sign those checks relates to which internal control activity

a violation of proper segregation of duties

Action Signs recorded credit sales of 10,000 on the gross method. Terms are 2/20, n/30. Select the correct statement about the entry to record this sale

accounts receivable increases 10000

In the reconciliation of a bank statement, deposits in transit should be

added to the unadjusted bank statement balance

Checks presented for payment and paid by the bank are known as

canceled checks

Fabian Woodworks This company purchased a truck at the cost of 12000. The truck has an estimated residual of value of 2000 and an estimated life of 5 years, or 100000 hours of operation. Refer to Fabian woodworks. Based on the info above what method of depreciation will maximize depreciation expense in 2019

double-declining-balance

Plant assets are depreciated because

the accural basis of accounting requires matching of costs to revenues

If a company erroneously records a 50 check received from a customer as 500 in its records, which of the following must occur when reconciling its bank statement

the company must decrease the balance per its records by 450

Refer to Academy Grill Supply. Tje effect on the company's financial statements on December 31, 2019 is as follows

assets and Stockholders Equity increase

If the amount assigned to ending inventory is incorrect

both the balance sheet and income statement are affected

Goodwill can be recorded as an asset when:

business is purchased and payment is made in excess of the value of the net assets

Which of the following statements best describes the act of collusion

collusion is an intentional act of two or more employees to accomplish theft of company assets

Which one of the following is an accurate description of the allowance for doubtful accounts

contra account

If a company erroneously records a 50 deposit as 500 in its records, which of the following must occur when reconciling its bank statement

the company must increase the balance per its records by 450

Cost of goods sold is equal to

the cost of merchandise purchased plus transportation cost plus beginning inventory minus purchase returns and allowances and purchased discounts minus ending inventory

Depreciation is a process by which

the cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset

Which of the following sets of factors is needed to calculate depreciation on plant and equipment

the estimated life of the asset, its acquisition cost, and its estimated residual value

Land is not depreciated because it

will provide future benefits for a company for an unlimited period of time

Which of the following is a transposition error

writing 89 as 98

Each of the following documents is used in the control of cash receipts except

outstanding checks

Which of the follow is a reconciling item on the bank side of a bank reconciliation

outstanding checks

Transportation-in is

part of the net cost of purchasesth

Which of the following is the correct entry to establish a petty cash fund un the amount of 300

petty cash fund 300 cash 300

Refer to Accent Flooring. What is the total amount of interest the company will receive when the note is collected

450

Refer to Fantasy Cruise Lines. What will be the book value of the ship at the end of its useful life

100000

Refer to Aaron Corporation. Calculate the cost of goods sold

105500

Porlato Corp. has an inventory turnover rate of 8 items. Calculate the company average days to sell inventory

45.625

Refer to Aaron Corporation. Calculate gross margin

144500

Refer to Fantasy Cruise Lines. What is the depreciation expense for the year ended December 31,2020

160000

Refer to Fabian Woodworks. What amount should be recorded as depreciation exapense each year starting in 2021

18000

Refer to Eli Company. If the customer pay the amount of the invoice for its purchase on March 14,2019, how much cash will Eli Company receive

1980

A company receiving payment of a 20000 accounts receivable within 10 days with terms of 2/10, n/30, would record a sales discount of:

2% of 20000

Assuming outstanding checks of $338, what is the company's adjusted cash balance at June 30th

2014

Refer to Fabian Woodworks. If the company uses the double-declining method what amount is the depreciation expense for 2020

2880

Refer to Pham Enterprises. What is the company's gross profit ratio for the year ended December 31

33.44%

Refer to Fabian Woodworks. If the company use the straight line method of depreciation what is the book value at December 31, 2021

4000

Fresh and fit Cruise. How much will be recorded as land improvements

6000

Refer to Pham Enterprises. What is the company's inventory turnover ratio for the year ended December 31

6108

Refer to the information provided for Aaron Corporation. Calculate net income

65500

Refer to a Better Mousetrap. What amount should the company recognize as interest revenue on December 31, 2019

750

A company had beginning accounts receivable of 175000. All sales were on account and totaled 550000. Cash collected from customers totaled 650000. Calculate the ending accounts recivable balance

75000

Fernbank Firms This company purchased a semi truck at the beginning of 2019 at a cost of 100000.. the truck had an estimated life of 5 years, an estimated residual value of 20000 and will be depreciated using the single line method.. on January 1, 2021 the company made major repairs of 30000 to the truck that expanded the life 3 years. The truck had a remaining life of 5 years and a new salvage value of 8000. Refer to fernbanks. What is the trucks book value at 12/31,2021

80000

Each of the following items is considered a cash equivalent except

a 180-day note issued by a local government

Refer to Art shoes. At the maturity date, the customer pays for the note interest. The company made the proper adjustment at the end of December for interest. The effect of recognizing the transaction on the maturity date is

a decrease to Notes Receivables

Each of the following documents is used in the control pf cash disbursements except

bank credit memos

Each of the following is used in the control of cash disbursements except

bank credit memos

While preparing a bank reconciliation, which of the following items would be subtracted from the balance per the company records

bank service charges

Which of the following items would NOT be a reconciling item on a bank reconciliation

canceled checks

A physical count of inventory is required even though the company uses the perpetual inventory system. This is an example of the following internal control activities

checks on recorded amounts

While preparing a bank reconciliation, which of the following items would be added to the bank statement balance

deposits in transit

Which of the following is an intangible asset

goodwill

all of the following would be considered internal control weaknesses except

it takes two days to get a check written because of the approvals

If a company uses the direct write-off method of accounting for bad debts

it will record bad debt expense only when an account is determined to be uncollected

The operating cycle is the elasped time between the

purchase of goods or services and the ultimate collection of cash from customers related to the sale of those goods