1.When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method
|
|
uses a percentage of sales method to estimate uncollectible accounts.
|
|
|
is used primarily by large companies with many receivables.
|
|
|
is used primarily by small companies with few receivables.
|
|
|
uses an allowance account.
|
2.As part of the initial investment, a partner contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $38,000 for the contributed equipment, what amount should be debited to the equipment account?
|
|
$38,000
|
|
|
$150,000
|
|
|
$125,000
|
|
|
$100,000
|
3.Partners Ken and Macki each have a $40,000 capital balance and share income and losses in a 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $80,000, the Macki's capital account will
|
|
decrease by $16,000.
|
|
|
decrease by $24,000.
|
|
|
increase by $24,000.
|
|
|
decrease by $40,000.
|
4.During May, Blast sold 650 portable CD players for $50 each. Each CD player cost Blast $25 to purchase and carried a one-year warranty. If 10 percent of the goods sold typically need to be replaced over the warranty period, what amount should Blast debit Product Warranty Expense for in May?
|
|
$3,250
|
|
|
$1,625
|
|
|
$ 650
|
|
|
$1,300
|
5.When a limited partnership is formed
|
|
the partnership activities are limited
|
|
|
all partners have limited liability
|
|
|
some of the partners have limited liability
|
|
|
none of the partners have limited liability
|
6.Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:
|
Year 1:
|
$10,000
|
|
Year 2:
|
45,000
|
|
Year 3:
|
90,000
|
|
|
7.Determine the dividends per share for preferred and common stock for the third year.
|
|
$4.50 and $0.25
|
|
|
$3.25 and $0.25
|
|
|
$4.50 and $0.90
|
|
|
$2.00 and $0.25
|
8.Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $90,000. How much cash should be distributed to Adriana?
|
|
$50,000
|
|
|
$20,000
|
|
|
$30,000
|
|
|
$45,000
|
9.When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method
uses a percentage of sales method to estimate uncollectible accounts.
is used primarily by large companies with many receivables.
is used primarily by small companies with few receivables.
uses an allowance account.
10.As part of the initial investment, a partner contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $38,000 for the contributed equipment, what amount should be debited to the equipment account?
$38,000
$150,000
$125,000
$100,000
11.Partners Ken and Macki each have a $40,000 capital balance and share income and losses in a 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $80,000, the Macki's capital account will
decrease by $16,000.
decrease by $24,000.
increase by $24,000.
decrease by $40,000.
12.During May, Blast sold 650 portable CD players for $50 each. Each CD player cost Blast $25 to purchase and carried a one-year warranty. If 10 percent of the goods sold typically need to be replaced over the warranty period, what amount should Blast debit Product Warranty Expense for in May?
$3,250
$1,625
$ 650
$1,300
13.When a limited partnership is formed the partnership activities are limited all partners have limited liability some of the partners have limited liability none of the partners have limited liability.
14.following amounts were distributed as dividends:
Year 1:
$10,000
Year 2:
45,000
Year 3:
90,000
Determine the dividends per share for preferred and common stock for the third year.
$4.50 and $0.25
$3.25 and $0.25
$4.50 and $0.90
$2.00 and $0.25
15.Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $90,000. How much cash should be distributed to Adriana?
$50,000
$20,000
$30,000
$45,000