Accounting Exam 3

Which of the following is not a part of a corporations annual report

Employees pay rates

The allowance for bad debts account on the balance sheet is

Subtracted from accounts receivable

The two methods of accounting for uncollectible accounts receivable are

The allowance method and the direct write off method

James words 54 hours last week. History time wages of $17 per hour and he earns time and a half work any hours worked over 40 hours per week what is James gross pay for the week?

$1037

A coal mine cost $1,008,000 and is estimated to hold 57,000 tons of coal. There's no residual value. During the first year of operations, 6000 tons are extracted and sold. Calculate depletion per unit.

$17.68

Anniston company purchased a new machine for $20,000. The machine required insulation cost of $8900 and insurance while in transit of $600 at which of the following amounts were the machine be recorded?

$29,500

A company made a sale on account to Tonya Thompson for $7000 into John Brown for $6000. The company received $4200 from Miss Thompson and $4200 from Mr. Brown, but does not expect to collect the balance from either Customer. Using the direct write off method, what is the amount of bad debts expense?

$4600

A company reports the following balances at the end of the current year Accounts receivable $525,000 Bad debts expense $4000 Allowance for bad debts $5000 What is the net realizable value of account for sevable?

$520,000

Barron Inc. sold goods for $893,500 On account. The company operates in a state that imposes a 10% sales tax. What is the amount of the sales tax payable to the state?

$89,350

On December 1, 2025 Eagle Inc. sold machinery to a customer for $20,000 the customer cannot pay at the time of sale but agreed to pay six months later and sign a six-month note at 9% interest. How much interest revenue was earn for the entire time and the note?

$900

Amber ink provides the following information for 2025 Net income $280,000 Market price per share of common stock $50 per share Dividends paid $185,000 Common stock outstanding at January 1, 2025 160,000 shares Common stock outstanding on December 31, 2025 220,000 shares The company has no preferred stock outstanding. Calculate the earnings per share for 2025

** The answer is not $1.75 per share

A permanent decline in the value of an asset is called

** The answer is not depletion

The process by which businesses spread the allocation of an intangible assets cost over the useful life is

** the answer is not depreciation

Plant assets are required to

** the answer is not hold onto as an investment

Which of the following statements regarding notes receivable is incorrect

**The answer is not a note receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future

Which of the following statements regarding receivables is correct

**The answer is not a receivable is the right to pay cash in the future from a current receivable transaction

A measure of a business is ability to meet you short term obligations with its current asset is

**the answer is not Debit ratio

Use the following to calculate the acid test ratio Cash $150,000 Short term investment $18,000 net current receivable $270,000 Inventory $300,000 Total current liability $750,000

. 58

On January 1, 2023 Hilldale company had sold assets of $362,000. Tearing the year the company purchased new machinery worth $88,000 in promise to pay the amount due after two years. Throughout the year Aaron's revenue of $60,000 every month. Calculate the asset turnover ratio.

1.77 times

Victor shop Inc. has net sales revenue of $2 million the cost of good sold is $1,300,000 calculate gross profit percentage

35%

A company reports total assets of $890,000 in stockholders equity of $500,000. Calculate the debt ratio.

43.82%

Which of the following is a control risk related to payroll

A dishonest in point cashing a paycheck that was written to a fictitious person

Hey dad that does not need to be paid within one year or within the entities operating cycle, whichever is longer is considered

A long-term liability

Jason and Company sold a truck for $3000. The truck Had initially cost $30,000 when new, and the truck has accumulated depreciation of $16,000 when it was sold. The amount of gain or loss from This sale is

A loss of $11,000

Analyst look for red flags and financial statements that may signal financial trouble. Which of the following is a red flag that suggested a company may be in trouble?

A significant decrease in that income for several years in a row

Which of the following is not a way to accurately determine the financial performance of a company

Carefully examining one year of data

Marcus King Saul good with the selling price of $52,000 in 2025 an estimated 3% warranty expense it for the year. Customers complaint of the facts and goes with the cost of $1500 how to be replaced which of the following is a correct journal entry for honoring the warranties with goods?

Estimated warranty payable 1500 merchandise inventory 1500

Which of the following is required to be deducted from employees paychecks

Federal income tax

Vacation, health, and pension benefits must be estimated and recorded as

Liabilities

Immediately following the financial statement is the

Notes to financial statements

Which of the following is not a basic method used to estimate bad debts

Percent of net income method

When determining how businesses record or do not record contingent liabilities, which Is not one of the three likelihood that are considered

Reasonably probable

Which of the following statements about the times interest earned ratio is true

The times interest earned ratio is also called the interest coverage ratio

Which depreciation method allocates depreciation based on where in tear rather than obsolescence

The unit of production method

Plant assets remain on the businesses books until

They are disposed of