1. A note receivable due in five years is listed on the balance sheet under the caption _______.(Points : 2)

investments

current assets

fixed assets

stockholders' equity

Question 2. 2. A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is _______.(Points : 2)

$6,100 $5,400 $5,900 $6,000

Question 3. 3. The Drilling Company purchased a mining site for $500,000 on July 1, 2010. The company expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered. The estimated residual value of the property is $80,000. During 2010, the company extracted 6,500 tons of ore. The depletion expense for 2010 is(Points : 2)

$37,700 $42,000 $32,500 $27,300

Question 4. 4. The two most widely used methods for determining the cost of inventory are _______.(Points : 2)

FIFO and LIFO FIFO and average cost LIFO and average cost gross profit and average cost

Question 5. 5. A fixed asset with a cost of $30,000 and accumulated depreciation of $25,000 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?(Points : 2)

$2,500 loss $1,500 loss $2,500 gain $1,500 gain

Question 6. 6. When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called _______.(Points : 2)

first-in, last-out last-in, first-out first-in, first-out average cost

Question 7. 7. Salvage value has a similar meaning as _______.(Points : 2)

residual value scrap value book value both residual value and scrap value

Question 8. 8. Receivables are usually a significant portion of _______.(Points : 2)

total current liabilities total liabilities total current assets total assets

Question 9. 9. Allowance for Doubtful Accounts is listed on the balance sheet under the caption _______.(Points : 2)

stockholders' equity investments fixed assets current assets

Question 10. 10. The two methods of accounting for uncollectible receivables are the allowance method and the _______.(Points : 2)

equity method direct write-off method interest method cost method

Question 11. 11. The inventory data for an item for November are: Nov. 1 Inventory 25 units at $20 10 Purchased 30 units at $21 30 Purchased 10 units at $22 Sold 35 units Using the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30?(Points : 2)

$640 $605 $623 $660

Question 12. 12. Other descriptive titles for fixed assets would include _______.(Points : 2)

plant assets property, plant, and equipment other long-term assets both plant assets and property, plant, and equipment

Question 13. 13. In reference to a promissory note, the person who is to receive payment is called the _______.(Points : 2)

maker payee seller payor

Question 14. 14. Which of the following expenditures would NOT be included in the cost of an asset?(Points : 2)

Freight costs Vandalism Sales tax Surveying fees

Question 15. 15. If the cost of an item of inventory is $60 and the current replacement cost is $65, the amount included in inventory according to the lower of cost or market is(Points : 2)

$5 $60 $65 $125

Question 16. 16. A fully depreciated asset must be _______.(Points : 2)

removed from the books kept on the books until sold or discarded disclosed only in the notes to the financial statements recognized on the income statement as a loss

Question 17. 17. NBC Company purchased a patent from ABC for $144,000. At the time of purchase, the patent had been in existence for 10 years. What is the first year's amortization?(Points : 2)

$7,200 $18,000 $12,000 $14,400

Question 18. 18. Book value is defined as _______.(Points : 2)

current market value less residual value cost less residual value current market value less accumulated depreciation cost less accumulated depreciation

Question 19. 19. Land improvements include _______.(Points : 2)

fences trees and shrubs outdoor lighting All of the above

Question 20.20. Equipment was purchased for $18,000. It has a useful life of 5 years and a residual value of $2,000. What is depreciation expense for year one under the double-declining-balance method?(Points : 2)

$6,400 $3,200 $7,200 $3,600