ACC 291 Week 1 Quiz new
indigo11
Week 1 Quiz
Practice Question 01
What type of receivable is evidenced by a formal instrument and normally requires the payment of interest?
An account receivable
A note receivable
A trade receivable
Past-due accounts receivables
Practice Question 03
Corristan Company purchased equipment and incurred these costs:
Cash price
$24,000
Sales taxes
1,200
Insurance during transit
200
Annual maintenance costs
____400
Total costs
$25,800
What amount should be recorded as the cost of the equipment?
$24,000
$25,200
$25,400
$25,800
Practice Question 05
When is a receivable recorded by a service organization?
When the bill is sent to the customer
When the customer pays
When the related expenses are incurred
When service is provided on account
Practice Question 10
At what value are accounts receivable reported on the balance sheet?
Present value
Fair market value
Maturity value
Cash (net) realizable value
Practice Question 21
Short-term notes receivable are reported at their cash (net) realizable value.
True
False
Practice Question 25
Which one of these statements about promissory notes is incorrect?
The party to whom payment is to be made is called the payee.
A promissory note is not a negotiable instrument.
A promissory note is more liquid than an account receivable.
The party making the promise to pay is called the maker.
Practice Question 05
Which of the following is not a depreciable asset?
Equipment
Buildings
Land
Land improvements
Practice Question 24
At the beginning of the year, Powers Company purchased a piece of machinery for $50,000. It has a salvage value of $5,000, an estimated useful life of 9 years, and estimated units of output of 90,000 units. Actual units produced during the first year were 11,000. How much is depreciation expense for the first year under the straight-line method?
$5,300
$5,556
$5,500
$5,000
Practice Question 34
On April 1, 2017, La Presa Company sells some equipment for $18,000. The original cost was $50,000, the estimated salvage value was $8,000, and the expected useful life was 6 years. On December 31, 2016, the Accumulated Depreciation account had a balance of $29,400. How much is the gain or loss on the sale?
$300 gain
$850 loss
$5,400 gain
$2,600 loss
- 6 years ago
Purchase the answer to view it
- ACC291Week1Quiznew.docx