1) On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the
A. Uncollectible accounts expense for the year
B. total of the accounts receivables written-off during the year
C. total estimated uncollectible accounts as of the end of the year
D. sum of all accounts that are past due.
2) Machinery was purchased on January 1, 2010 for $51,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining balance depreciation for 2011 would be
A. $10,929
B. $6,000
C. $10,500
D. $10,408
3) Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation.
A. $13,200
B. $19,200
C. $ 9,600
D. $ 9,000
4) In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?
A. direct write-off method
B. percentage of sales method
C. Analysis of receivables method
D. both (b) and (c)
5) The amount of a promissory note is called the
A. realizable value
B. maturity value
C. face value
D. proceeds
6) Dalton Company uses the allowance method to account for uncollectible receivables. Dalton has determined that the Irish Company account is uncollectible. To write-off this account, Dalton should debit
A. Bad Debt Expense and credit Accounts Receivable
B. Bad Debt Expense and credit Allowance for Doubtful Accounts
C. Allowance for Doubtful Accounts and credit Accounts Receivable
D. Accounts receivable and credit Allowance for Doubtful Accounts
7) All leases are classified as either
A. capital leases or long-term leases
B. capital leases or operating leases
C. operating leases or current leases
D. long-term leases or current leases