10. 1/What is the amount of cost of good sold for the year according to the aver
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Question
10. 1/What is the amount of cost of good sold for the year according to the average cost method?a.
$1,380
b.
$1,375
c.
$1,510
d.
$1,250
11. 2/A note receivable due in 18 months is listed on the balance sheet under the caption
a.
long-term liabilities
b.
fixed assets
c.
current assets
d.
investments
12. 3/The two methods of accounting for uncollectible receivables are the allowance method and the
a.
equity method
b.
direct write-off method
c.
interest method
d.
cost method
13. 4/Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited
a.
at the end of each accounting period.
b.
when a credit sale is past due.
c.
whenever a pre-determined amount of credit sales have been made.
d.
when an account is determined to be worthless.
14. 5/After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?
a.
$30,000
b.
$430,000
c.
$460,000
d.
$490,000
15. 6/A debit balance in the Allowance for Doubtful Accounts
a.
is the normal balance for that account.
b.
indicates that actual bad debt write-offs have been less than what was estimated.
c.
cannot occur if the percentage of receivables method of estimating bad debts is used.
d.
indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.
16. 7/Current liabilities are
a.
due, but not receivable for more than one year
b.
due, but not payable for more than one year
c.
due and receivable within one year
d.
due and payable within one year
17. 8/The journal entry to record the conversion of an $550 accounts payable to a notes payable would be:
a.
Cash 550
Notes Payable 550
b.
Notes Receivable 550
Notes Payable 550
c.
Notes Payable 550
Cash 550
d.
Accounts Payable 550
Notes Payable 550
18. 9/Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?
a.
FICA tax rate
b.
wage and tax statement
c.
FUTA tax rate
d.
wage bracket and withholding table
19. 10/Which of the following taxes would be deducted in determining an employee's net pay?
a.
FUTA taxes
b.
SUTA taxes
c.
FICA taxes
tax
c.
only federal income tax
d.
only state unemployment compensation tax
Explanation / Answer
10 Insufficient data 11 c. current assets 12 b.direct write-off method 13 d.when an account is determined to be worthless 14 b.$430,000 15 d.indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. 16 d.due and payable within one year 17 d. Accounts Payable 550 Notes Payable 550 18 d.wage bracket and withholding table 19 c.FICA taxes
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