Exam 3

Card Set Information

Exam 3
2010-06-29 17:25:17

Exam Three study
Show Answers:

  1. the entry to record accrued interest on a note receivable at year end includes
    debit to intrest recivble
  2. the direct write off method does not meet the reqs of the
    matching principle
  3. under the aging of AR
    the balance in allowance for uncollectables prior to adj must be considered
  4. the entry to write off an uncollectble account is
    debt to allowance for uncollectable accounts
  5. to reinstate an account debit
    debit accounts recivble
  6. which accounting principle prescribes the use of the allowance method of accounting for bad debts
    matching principle
  7. under the allowance method the entry to reinstate an account previously written off:
    has no effect on net income
  8. under the allowance method the entry to record the estimated bad debts
    reduces total assets
  9. under the allowance method the write off entry for an account:
    a. reduces net income
    b. reduces total assets
    c. increases net income
    d. has no effect on total assets
    Has no effect on total assets
  10. net accounts receivable is calculated as
    a/r minus allowance for uncollectble accnts
  11. under the allowance method the entry to record the bad debts includes a
    debit to uncollectable account expense
  12. uncollectble accnt xpnse is
    the cost of the seller extending credit
  13. all of the following r intangible assets except: a. patentsb. natural gasc. good willd. trademarks
    Natural Gas
  14. depletion expense results from
    the portion of the cost of natural resources that is used up in a particular perioddepletion expense results from
  15. equipment costing 10k with 7800 in accDeprec is sold for 2500 the what is the Jentry
    debit to accDeprec for 7800
  16. when the assets book value is greater than the amount of cash received from the sale
    ther is a loss to be recorded on the sale of a plant asset
  17. at the end of an assets useful life the balance in accDeprec will
    b an = amount under all the deprecation methods
  18. more deprecation in early years of an asset's use compared to other deprecation methods describes what method
    the double declining balance
  19. book value is
    cost less accDeprec
  20. depreciable cost is defined as
    cost minus salvage value
  21. accDeprec represents a growing amount of cash
  22. deprecation is a process of valuation
  23. accumulated deprecation is that portion of a plant asset's costs that has already been recorded as an xpnse true/fals
  24. quip = 50k, insurance for transit = 900. sales tax = 500. insurance for the 1st yr = 3k what is the cost of the quipment90
    5100 ncluds the transit and sales tax
  25. land is purchased for 60K. bak taxes paid by the byre: 1200 clearing and grading costs were 3k fencing costs were 2500 and lighting costs were 500 total land cost =
    64,200 includes only the bak taxes and clearing/grading costs
  26. the cost of land would include all of the following excepta. purchase priceb. back property taxesc. clearing the landd. fencing
  27. accrued real estate taxes paid at the time of purchase of real estate is under what account
  28. real estate taxes on land paid for the current year is what account
    other accounts
  29. full payment to bldg contractor belongs to what account
  30. excavation costs for new bldg belongs to what account
  31. cost of real estate purchased as a plant site (land 100,000 and bldg 25,000) belongs to what account
  32. cost of parking lots and driveways belongs to what accounts
    other accounts
  33. architects fees on bldgs plans belongs to what account
  34. installation costs of fences around property belongs to what account
    other accounts
  35. cost of demolishing bldg to make land suitable for construction of new bldg belongs to what account
  36. proceds from salvage of demolished bldgs is a credit to what account