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Question 11 (1 point)

A capital asset was purchased on January 1 for $30,000 with an estimated residual value of $6,000 at the end of its useful life. The current year's Amortization Expense is $3,000 calculated on the straight-line. The estimated useful life of the plant asset is

Question 11 options:

	a) 10 years.
	b) 8 years.
	c) 5 years.
	d) 3 years.

Question 12 (1 point)

A change in the estimated useful life of equipment requires

Question 12 options:

	retroactive change in the amount of periodic amortization recognized in previous years.
	that no change be made in the periodic amortization so that amortization amounts are comparable over the life of the asset.
	that the amount of periodic amortization be changed in the current year and in future years.
	that income for the current year be increased.

Question 13 (1 point)

If a capital asset is retired before it is fully amortized, and the residual value received is less than the asset's book value,

Question 13 options:

	a) a gain on disposal occurs.
	b) a loss on disposal occurs.
	c) there is no gain or loss on disposal.
	d) additional amortization expense must be recorded.

Use the following information for questions 14-16.

A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000.

Question 14 (1 point)

The land will be recorded at a cost of

Question 14 options:

	a) 45,000.
	b) $48,234.
	c) $46,154.
	d) $50,000.

Use the following information for questions 14-16.

A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000.

Question 15 (1 point)

The building will be recorded at a cost of

Question 15 options:

	$150,000.
	$140,000.
	$135,000.
	$138,461.

Use the following information for questions 14-16.

A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000.

Question 16 (1 point)

The equipment will be recorded at a cost of

Question 16 options:

	$115,384.
	$118,723.
	$120,000.
	$125,000.

Question 17 (1 point)

According to the matching principle, future removal and site restoration costs, especially for a natural resource, must be

Question 17 options:

	a) expensed as incurred.
	b) estimated in advance and allocated over the useful life of the natural resource.
	c) estimated in advance and expensed completely in the year of acquisition of the related natural resource.
	d) expensed in the final year of operations.

Question 18 (1 point)

Your business receives full payment of $500 for an account receivable that was previously written off is collected. Before the entry to record the payment is recorded, the following entry must be made

Question 18 options:

	Debit Accounts Receivable, Credit Allowance for Doubtful Accounts
	Debit Allowance for Doubtful Accounts, Credit Accounts Receivable
	Debit Bad Debts Expense, Credit Allowance for Doubtful Accounts
	Debit Bad Debts Expense, Credit Accounts Receivable

Question 19 (1 point)

Which of the following is an intangible asset that results from the purchase of a business for more than its net asset value?

Question 19 options:

	Goodwill
	Patent
	Trademark
	Trade name

Question 20 (1 point)

Research costs not related a specific product

Question 20 options:

	are classified as intangible assets.
	must be expensed when incurred under generally accepted accounting principles.
	should always be capitalized rather than expensed
	are capitalized and then amortized over a period not to exceed 40 years.

Question 21 (1 point)

The Income Statement Method of estimating bad debts:

Question 21 options:

	a) applies a percentage to the accounts receivable
	b) applies a percentage to the net credit sales
	c) writes off bad debts as they're incurred only
	d) can be used in a company with a cash only policy

Question 22 (1 point)

When using the Balance Sheet method, a percentage of the outstanding accounts receivable is calculated as the estimate of uncollectible bad debts. That calculated amount is:

Question 22 options:

	Added to the Allowance for Doubtful Accounts
	Subtracted from the Allowance for Doubtful Accounts
	The new balance of Allowance for Doubtful Accounts
	Expensed completely.

Question 23 (1 point)

When an Accounts Receivable is written off:

Question 23 options:

	Bad Debt Expense is credited
	Allowance for Doubtful Accounts is credited
	Accounts Receivable is credited
	Sales is credited.

Question 24 (1 point)

A promissory note is issued when:

Question 24 options:

	a) One business loans another business money
	b) When an extraordinary credit term is granted
	c) An agreement is made between companies for outstanding accounts receivable that will now earn interest.
	d) All of the above

These are ALL ONE question. Thanks

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