1. What is the maturity value of a 60-day, 9% note for $6,000? (Points : 1)
2. The allowance method of accounting for receivables that appear to be uncollectible: (Points : 1)
a. records an expense for uncollectible receivables in advance of their actual write-off.
b. is rarely used in practice
c. results when a company sells its receivables
d. All of these choices are true of the allowance method
3. Businesses that sell most of their goods or services for cash and accept only credit cards would use which method of accounting for uncollectible receivables? (Points : 1)
a. The direct write-off
b. The allowance method
c. Either the direct write-off or the allowance method
d. These businesses would not use any method as they have no bad debts
4. When the estimate based on the sales approach to estimating uncollectibles is used: (Points : 1)
a. any existing balance in the allowance for doubtful accounts is not taken into consideration.
b. any existing balance in the allowance for doubtful accounts must be taken into consideration.
c. only a credit balance in the allowance for doubtful accounts must be taken into consideration.
d. only a debit balance in the allowance for doubtful accounts must be taken into consideration.
5. Accounts Receivable has a balance of $378,000 and the Allowance for Doubtful Accounts has a positive balance of $1,200 at fiscal year end prior to adjustment. If the estimate based on the sales approach to estimating uncollectibles is $13,780, the amount of uncollectible accounts expense is __________. (Points : 1)
6. Which of the following types of inventory accounts do manufacturing companies have? Work in Process, Material or Finished Goods? (Points : 1)
a. Yes, Yes, Yes
b. No, Yes, Yes
c. No, Yes, Yes
d. No, Yes, No
7. When the first-in, first-out (FIFO) method is used to value inventory, cost of goods sold: (Points : 1)
a. is made up of the earliest costs.
b. is made up of the most recent costs.
c. is made up of the average of earliest and most recent costs.
d. None of the above
8. Which inventory cost flow assumption would value ending inventory at more recent costs? (Points : 1)
d. Specific Identification