Multiple choice questions. No need to explain.

Question 1:

Ace Co. prepared an aging of its accounts receivable at December 31, 2010 and determined that the net realizable value of the receivables was $300,000. Additional information is available as follows:

Allowance for uncollectible accounts at 1/1/10credit balance	$ 34,000
Accounts written off as uncollectible during 2010	23,000
Accounts receivable at 12/31/10	325,000
Uncollectible accounts recovered during 2010	5,000

For the year ended December 31, 2010, Ace's uncollectible accounts expense would be

$25,000.

$23,000.

$16,000.

$9,000.

Question 2

An accountant wishes to find the present value of an annuity of $1 payable at the beginning of each period at 10% for eight periods. The accountant has only one present value table which shows the present value of an annuity of $1 payable at the end of each period. To compute the present value, the accountant would use the present value factor in the 10% column for

seven periods.

eight periods and multiply by (1 + .10).

eight periods.

nine periods and multiply by (1 .10).

Question 3

An accrued revenue can best be described as an amount

collected and currently matched with expenses.

collected and not currently matched with expenses.

not collected and currently matched with expenses.

not collected and not currently matched with expenses.

Question 4

An effective capital allocation process

promotes productivity.

encourages innovation.

provides an efficient market for buying and selling securities.

all of these.

Question 5

During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept?

Cost/benefit constraint

Periodicity assumption

Conservatism constraint

Matching principle

Question 6

Equestrain Roads accepted a customer's $50,000 zero-interest-bearing six-month note payable in a sales transaction. The product sold normally sells for $46,000. If the sale was made on June 30, how much interest revenue from this transaction would be recorded for the year ending December 31?

$0.

$2,000.

$4,000.

$5,000.

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Question 71 pts

FASB Technical Bulletins

are similar to FASB Interpretations in that they establish enforceable standards under the AICPA's Code of Professional Ethics.

are issued monthly by the FASB to deal with current topics.

are not expected to have a significant impact on financial reporting in general and provide guidance when it does not conflict with any broad fundamental accounting principle.

were recently discontinued by the FASB because they dealt with specialized topics having little impact on financial reporting in general.

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Question 81 pts

Financial statements in the early 2000s provide information related to

nonfinancial measurements.

forward-looking data.

hard assets (inventory and plant assets).

none of these.

Question 9

Free cash flow is calculated as net cash provided by operating activities less

capital expenditures.

dividends.

capital expenditures and dividends.

capital expenditures and depreciation.

Question 10

Fulton Company owns the following investments:

Trading securities (fair value)	$60,000
Available-for-sale securities (fair value)	35,000
Held-to-maturity securities (amortized cost)	47,000

Fulton will report investments in its current assets section of

$0.

exactly $60,000.

$60,000 or an amount greater than $60,000, depending on the circumstances.

exactly $95,000.