Question 1 (1 point) The entry to record interest expense on a bank loan payable is a debit to interest expense and credit to interest payable. debit to interest expense and credit to note payable. debit to note payable and credit to interest revenue. debit to interest payable and credit to interest revenue. Question 2 (1 point) Under the allowance method for uncollectible accounts, Bad Debts Expense is debited when an account is deemed uncollectible and must be written off. the recovery of an account receivable previously written off results in a credit to the Bad Debt Expense account. the carrying value of receivables is the same both before and after an account has been written off. the carrying amount of receivables is the same both before and after an account that had previously been written off is recovered. Question 3 (1 point) Asset retirement costs are added to the cost of a depreciable asset. treated as a separate asset. O have no effect on a depreciable asset. deducted from the cost of a depreciation asset. Question 4 (1 point) The indirect and direct methods of preparing the statement of cash flows are identical except for the d financing activities section. O significant noncash activity section. O investing activities section. O operating activities section. Question 5 (1 point) Vertical analysis makes it more difficult to compare different companies. expresses each item in a financial statement as a percent of a base amount. O is also called trend analysis. is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place. Question 6 (1 point) An investor, Mr. Gold sold 100 shares of Delia Corp. to another investor, Mrs. Silver, for $2,200. As a result of this transaction, Delia Corp.'s assets increased by $2,200. shareholders' equity did not change. o shareholders' equity decreased by $2,200. shareholders' equity increased by $2,200. Question 7 (1 point) In horizontal analysis, the percentage of a base-period amount is calculated by dividing the item under analysis by total assets. dividing the item under analysis by net sales. dividing the dollar amount of the change since the base period by the base period amount. dividing the analysis period amount by the base period amount. Question 8 (1 point) Comparisons of financial data made within a company are called o intercompany comparisons. intracompany comparisons. O interior comparisons. intramural comparisons