1. On which financial statement would you expect to find Allowance for Doubtful Accounts?

   		Balance Sheet
   		Income Statement

2.65 points

QUESTION 12

1. Long term or relatively permanent tangible assets. They are used by the business or company and are not sold to customers.

   		Intangible Assets
   		Current Assets
   		Fixed Assets

2.65 points

QUESTION 13

1. Which of the following depreciation methods is NOT an accelerated method?

   		Double-declining Balance
   		Straight-line
   		Sum-of-the-years' Digits

2.65 points

QUESTION 14

1. A business changes from depreciating its vehicles at 25% on a straight line basis to 10%. What will be the effect of this change on profit in the first year of change?

   		Decrease profits
   		Increase profits
   		No effect
   		Not able to quantify

2.65 points

QUESTION 15

1. The inventory cost flow assumption where the cost of the most recent purchase is matched first against sales revenues is

   		FIFO
   		LIFO
   		Average

2.65 points

QUESTION 16

1. Which method of reporting losses on accounts receivable is required in the U.S. for financial reporting?

   		Allowance
   		Direct Write-off

2.65 points

QUESTION 17

1. Inventory is a current asset

   True

   False

2.65 points

QUESTION 18

1. An asset's useful life is the same as its physical life?

   True

   False

2.65 points

QUESTION 19

1. In some industries, companies often sell their accounts receivable to a firm known as a ______

   .

   		Pledging
   		Factoring
   		Assigning

2.65 points

QUESTION 20

1. Using fifo, costs are included in the merchandise sold in the order in which they were incurred

   True

   False