let me know if the answers for this pratice exam are correct

3) 10 21. The book value of a plant asset is the difference between the a teplacement cost of the asset and its histoncal cost b proceeds received from the sale of the asset and its onsinal cos! c cost of the asset and the accumulated depreciation to date d cost of the asset and the amount of depreciation expente for the jeat 22 Using the following data for Stevenson Industries, compute the 2014 returb on assets iatis Net income in 2014 Total Assets 12/31/14 Total Assets 12/31/13 Net Sales. a. 6.2% b. 114% c 68% d 104% :3 Goodwil can be recorded a when customers keep returning because they are satisfied with the compun 's pustints b only when there is a transaction involving the purchase of an entire turatress c. when the company has exceptional management a when the company acquires a good location for ils business. gain or loss on the date of sale is a sin000gan a $5000gan e sic000 ios =55005ibs : Neticis Compary uses the percentage of receivables method for recording bad debt expense Tha ending accounts receivable balance is $200,000 and management estimates that 4% of this ba ance in te unto"ectis'e. What adjusting entry will Nichols Company make if the Allowance for Doubtful Acocur's has a credit balanse of $2,000 before adiustment? 16. The following information is for Golic inc in 2014 : - January 1,2014 Allowance for Doubtful Accounts had a credit balance of $15,000 - During 2014, $24,000 of uncollectible sccounts receivable were written off. - December 31, 2014 accounts receivable balance was $160,000 Vhat is the regurment estmates 10% of accounts receivables will be uncollectible a $15000 a b $24,000 c $31,000. d $25.000 17. Amold Company purchases a new delivery truck for $40,000. The sales taxes are $2.500. The logo of the company is painted on the side of the truck for $1,200. The truck's annual bcense is $120. The truck undergoes inital salety testing for $220. What does Amold record as the cost of the new truek? b. $44040 c $2500 d $43.620. 18. Equpenemt with a cost of $225,000 has an estimated savage value of $15,000 and an estimated ife of 4 years it is to be depreciated by the straight-line method. What is the amount of depreciation for the first a. $=8250 b. 3:4375 c $58760. d $52,500. 19. A company purchased factory equipment on June 1, 2014, for $96,000. It is estimated that the equipment will hare a $5,000 salvage value at the end of ts 10 -year useful life, Using the straght-line method of depreciation, the amount to be recorded as depreciation expense at December 31.2014 , is 59000 b 53.750 c $4500 d. $5.250. A joutrial enity is thot reerded for which item in a cash reconcilation? a outstanding check b bank service charge c Nif clieck d collection of a nule by the bank. 3. MeM Corp receives a bank statement for June which reports their bank collected a $2;000 Note Rerceivable and $50 inferest, on behalf of M8M. In addfion, the bank charged a $30 fee. What is the correct journal entry to tocord the suanis 34 Nitson Company gathered the following reconciling information in preparing its August bank repantitiatinn The apusied palance per Dooks on August S1 is a. $24,960. b $14,760. c. $13,800. d $24,050 35. The followng information was taken from Mitchell Combanv cash budiget for the month of July: If the company has a policy of maintaining end of the month cash balance of $100,000, the amount the company would have to borrow is a. $40,000 b $24,000 c $60,000 d $20,000 a 7 tirio) i) $1,24, C. Stikin (1) 5100 \begin{tabular}{|c|c|c|c|} \hline July 1 & Itoulariany invontaty & 20 urnts at $20 & $400 \\ \hline 7 & Prateliasen & 70 tinits at $21 & 1.470 \\ \hline 22 & Puicliasmo & 10 unils al 522 & 220 \\ \hline & Cuevis / Avariatales & 100 & $2,090 \\ \hline \end{tabular} A pliysical couat of nimcluandige irwotitory on July 31 st reveals that there are 25 units on hand. Using the IIfO inventary mellnot, the amount allocated fo cost of goods sold for July is a $1,6134 b. $535 c $1,465 d $505 7 In a periout of risug prices, whuch of the following inventory cost methods results in the lowest net income figute? a Average coal mollicd b Need more information to aris var c PHO mattiot d. LiFO methed 8. Oramge-Aide Company thas the following inventory data \begin{tabular}{|c|c|c|c|} \hline July 1 & Beggininang invontory & 20 units at $20 & is 400 \\ \hline 7 & Putchistoro & 70 unds at 521 & 1,47 \\ \hline 22 & \begin{tabular}{l} Purctiasos \\ Gogeiofivalintion \end{tabular} & 10010unitsat522 & $2.09 \\ \hline \end{tabular} A physicai count of mnichariefise invantefy on July 31 reveals that there are 20 units on hand. Using the averago cost method, the vilue of ending inventory is a. $1,080 b. $418 c $1,672 d $420 Clinton, inc suld prosuct to Chistie Corp on May 33, with terms of FOB shipping point. FedEx picke up the product it Cliritori's offich on May 4 th and delivered it to Christie Corp on May 7m. Christie Cot pard Clinton the in full on May 21v On which date did this product become part of Christie Corp invenfory? a May 4 ih b. May 3rd c. May 214 a. $3,000 b. $13,000. c. $14,000 d $15,000. 2. What is the value of totat assets on the ce ance sreer z:123113 ? a. $81,000 b $89000 c $85,000 d. $87,000 a. $40000 b. $52,000. c. $45,000. d. $44,000. a $42.000. b. $4,000. c. $44,000. d $46,000. On January 1, 2014. Linden Company purchased the copynght to Norman Computer Tutoras ro $140065 if is estimated that the copyngnt will have a usefut life of 5 years The amount of amortization erbense tecognizet for the year 2014 would be a fimortization expense 28000 Acsumuled finortation 28,000 b. Depresation erpense 28.000 Copright c. Deprectation erpense 28000 28000 Accumulated dopreciation d. Amortication expense 28.000 28,000 Coppright 28,000 27 What key ponce of legstation was passed in response to corporate accounting scandals by Enron. Whondsom and others? a Sartans Ority Act b Fegulation Fair Disclosure c. 1934 Securities Exchango Act d 1933 secunties Act 28 Keeprg s.psles in a locked room with access allowed only to authorized personnel is an example of which preventive control? a Setatation of duties b. Emplojee management c. Performance Reviows a Phycat controls 29 A vehicle that cost $36,060 and on which $30,000 of accumulated depreciation has been recorded was sold for $5.050 cash The entry to record this event would include a 3 crect to gain of $3,000 b credt to Accumulated Depreciation for $30,000. 6 creat to the vencle account for 59,000 . d debit to loss of $3,000 30. Sam s Grocery Store has the following policy. "Only one cashier can have access to a cash drawer:" Whinch internal control principle supports this policy? a Documentation procedures. b Estsolshment of responsibility c. Peysicat controls. d. Eash employes must periodically take a vacation 31 The azused balance per the Dank on Apnt 30 is a $18450 b 518399 c. $16.552 d 517,619 Glen Govd Comcany has an acceunts recervable tumover ratio of 82 Harrod Gold Company has an acceunts recervabe tumover rato of 4.3 . Which of the folowing is likely true for Gien Gold Company cempared to Harrod Gold? a Gien Golds sales are increasing b. Gion Golds customers ate making paimenss relatively slower. c. Gen Golds customers are making payments relatwely quicker. o Gen Goid hos more sales are on credit 1t Young Company lends Dobson Industnes $60,000 on Oct 115, accepting a 6 -month, 10% interest note All interest and pnncipal will be pad back at the end of the 6 months. If Young prepares financial 5tivtements as of Cecember 31 st. What adjusting journal entry must Young record? 12. A detvt batance in the Allowance for Doubtful Accounts a is the normal balance for that account. b. cannot occur if the percentage of receivables method of estimating bad debts is used. c. indicates that actual bad debt wnte-offs have been less than what was estimated. d indicutes that actual bad debt write-offs have exceeded previous provisions for bad debts: 13 Young Company lends Dobson Industries $40,000 on August 1, 2013, accepting a 9-month, 12% interest note. If Young accrued interest revenue at its December 31,2013 year-end, what entry must it make to record the colloction of the note and interest on May 1.2014? When an account is written off using the allowance method, the a. net realizable accounts receivable will increase. b. The net realizable value of accounts receivable will stay the same. c. allowance for doubtful accounts account will increase. d. net realizable accounts receivable will decrease. 3) 10 21. The book value of a plant asset is the difference between the a teplacement cost of the asset and its histoncal cost b proceeds received from the sale of the asset and its onsinal cos! c cost of the asset and the accumulated depreciation to date d cost of the asset and the amount of depreciation expente for the jeat 22 Using the following data for Stevenson Industries, compute the 2014 returb on assets iatis Net income in 2014 Total Assets 12/31/14 Total Assets 12/31/13 Net Sales. a. 6.2% b. 114% c 68% d 104% :3 Goodwil can be recorded a when customers keep returning because they are satisfied with the compun 's pustints b only when there is a transaction involving the purchase of an entire turatress c. when the company has exceptional management a when the company acquires a good location for ils business. gain or loss on the date of sale is a sin000gan a $5000gan e sic000 ios =55005ibs : Neticis Compary uses the percentage of receivables method for recording bad debt expense Tha ending accounts receivable balance is $200,000 and management estimates that 4% of this ba ance in te unto"ectis'e. What adjusting entry will Nichols Company make if the Allowance for Doubtful Acocur's has a credit balanse of $2,000 before adiustment? 16. The following information is for Golic inc in 2014 : - January 1,2014 Allowance for Doubtful Accounts had a credit balance of $15,000 - During 2014, $24,000 of uncollectible sccounts receivable were written off. - December 31, 2014 accounts receivable balance was $160,000 Vhat is the regurment estmates 10% of accounts receivables will be uncollectible a $15000 a b $24,000 c $31,000. d $25.000 17. Amold Company purchases a new delivery truck for $40,000. The sales taxes are $2.500. The logo of the company is painted on the side of the truck for $1,200. The truck's annual bcense is $120. The truck undergoes inital salety testing for $220. What does Amold record as the cost of the new truek? b. $44040 c $2500 d $43.620. 18. Equpenemt with a cost of $225,000 has an estimated savage value of $15,000 and an estimated ife of 4 years it is to be depreciated by the straight-line method. What is the amount of depreciation for the first a. $=8250 b. 3:4375 c $58760. d $52,500. 19. A company purchased factory equipment on June 1, 2014, for $96,000. It is estimated that the equipment will hare a $5,000 salvage value at the end of ts 10 -year useful life, Using the straght-line method of depreciation, the amount to be recorded as depreciation expense at December 31.2014 , is 59000 b 53.750 c $4500 d. $5.250. A joutrial enity is thot reerded for which item in a cash reconcilation? a outstanding check b bank service charge c Nif clieck d collection of a nule by the bank. 3. MeM Corp receives a bank statement for June which reports their bank collected a $2;000 Note Rerceivable and $50 inferest, on behalf of M8M. In addfion, the bank charged a $30 fee. What is the correct journal entry to tocord the suanis 34 Nitson Company gathered the following reconciling information in preparing its August bank repantitiatinn The apusied palance per Dooks on August S1 is a. $24,960. b $14,760. c. $13,800. d $24,050 35. The followng information was taken from Mitchell Combanv cash budiget for the month of July: If the company has a policy of maintaining end of the month cash balance of $100,000, the amount the company would have to borrow is a. $40,000 b $24,000 c $60,000 d $20,000 a 7 tirio) i) $1,24, C. Stikin (1) 5100 \begin{tabular}{|c|c|c|c|} \hline July 1 & Itoulariany invontaty & 20 urnts at $20 & $400 \\ \hline 7 & Prateliasen & 70 tinits at $21 & 1.470 \\ \hline 22 & Puicliasmo & 10 unils al 522 & 220 \\ \hline & Cuevis / Avariatales & 100 & $2,090 \\ \hline \end{tabular} A pliysical couat of nimcluandige irwotitory on July 31 st reveals that there are 25 units on hand. Using the IIfO inventary mellnot, the amount allocated fo cost of goods sold for July is a $1,6134 b. $535 c $1,465 d $505 7 In a periout of risug prices, whuch of the following inventory cost methods results in the lowest net income figute? a Average coal mollicd b Need more information to aris var c PHO mattiot d. LiFO methed 8. Oramge-Aide Company thas the following inventory data \begin{tabular}{|c|c|c|c|} \hline July 1 & Beggininang invontory & 20 units at $20 & is 400 \\ \hline 7 & Putchistoro & 70 unds at 521 & 1,47 \\ \hline 22 & \begin{tabular}{l} Purctiasos \\ Gogeiofivalintion \end{tabular} & 10010unitsat522 & $2.09 \\ \hline \end{tabular} A physicai count of mnichariefise invantefy on July 31 reveals that there are 20 units on hand. Using the averago cost method, the vilue of ending inventory is a. $1,080 b. $418 c $1,672 d $420 Clinton, inc suld prosuct to Chistie Corp on May 33, with terms of FOB shipping point. FedEx picke up the product it Cliritori's offich on May 4 th and delivered it to Christie Corp on May 7m. Christie Cot pard Clinton the in full on May 21v On which date did this product become part of Christie Corp invenfory? a May 4 ih b. May 3rd c. May 214 a. $3,000 b. $13,000. c. $14,000 d $15,000. 2. What is the value of totat assets on the ce ance sreer z:123113 ? a. $81,000 b $89000 c $85,000 d. $87,000 a. $40000 b. $52,000. c. $45,000. d. $44,000. a $42.000. b. $4,000. c. $44,000. d $46,000. On January 1, 2014. Linden Company purchased the copynght to Norman Computer Tutoras ro $140065 if is estimated that the copyngnt will have a usefut life of 5 years The amount of amortization erbense tecognizet for the year 2014 would be a fimortization expense 28000 Acsumuled finortation 28,000 b. Depresation erpense 28.000 Copright c. Deprectation erpense 28000 28000 Accumulated dopreciation d. Amortication expense 28.000 28,000 Coppright 28,000 27 What key ponce of legstation was passed in response to corporate accounting scandals by Enron. Whondsom and others? a Sartans Ority Act b Fegulation Fair Disclosure c. 1934 Securities Exchango Act d 1933 secunties Act 28 Keeprg s.psles in a locked room with access allowed only to authorized personnel is an example of which preventive control? a Setatation of duties b. Emplojee management c. Performance Reviows a Phycat controls 29 A vehicle that cost $36,060 and on which $30,000 of accumulated depreciation has been recorded was sold for $5.050 cash The entry to record this event would include a 3 crect to gain of $3,000 b credt to Accumulated Depreciation for $30,000. 6 creat to the vencle account for 59,000 . d debit to loss of $3,000 30. Sam s Grocery Store has the following policy. "Only one cashier can have access to a cash drawer:" Whinch internal control principle supports this policy? a Documentation procedures. b Estsolshment of responsibility c. Peysicat controls. d. Eash employes must periodically take a vacation 31 The azused balance per the Dank on Apnt 30 is a $18450 b 518399 c. $16.552 d 517,619 Glen Govd Comcany has an acceunts recervable tumover ratio of 82 Harrod Gold Company has an acceunts recervabe tumover rato of 4.3 . Which of the folowing is likely true for Gien Gold Company cempared to Harrod Gold? a Gien Golds sales are increasing b. Gion Golds customers ate making paimenss relatively slower. c. Gen Golds customers are making payments relatwely quicker. o Gen Goid hos more sales are on credit 1t Young Company lends Dobson Industnes $60,000 on Oct 115, accepting a 6 -month, 10% interest note All interest and pnncipal will be pad back at the end of the 6 months. If Young prepares financial 5tivtements as of Cecember 31 st. What adjusting journal entry must Young record? 12. A detvt batance in the Allowance for Doubtful Accounts a is the normal balance for that account. b. cannot occur if the percentage of receivables method of estimating bad debts is used. c. indicates that actual bad debt wnte-offs have been less than what was estimated. d indicutes that actual bad debt write-offs have exceeded previous provisions for bad debts: 13 Young Company lends Dobson Industries $40,000 on August 1, 2013, accepting a 9-month, 12% interest note. If Young accrued interest revenue at its December 31,2013 year-end, what entry must it make to record the colloction of the note and interest on May 1.2014? When an account is written off using the allowance method, the a. net realizable accounts receivable will increase. b. The net realizable value of accounts receivable will stay the same. c. allowance for doubtful accounts account will increase. d. net realizable accounts receivable will decrease