ACC 220 UMUC Finals Section 2 Latest Version
1. After the bank reconciliation is prepared, the entry to record bank service charges would have a credit to:
2. Malloy Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2015. The balance in Accounts Receivable is $200,000, and the allowance account has a $3,000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2015 will be:
3. Malloy Company issued its own $10,000, 90-day, non interest-bearing note to a bank. If the note is discounted at 10 percent, the proceeds to Malloy are:
4. On 2015 July 1, Malloy Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Malloy uses the double-declining-depreciation method, the depreciation expense for 2010 is:
5. The result of recording a capital expenditure as a revenue expenditure is an:
6. Cole Inc., a new company, purchases a two-year insurance policy for $12,000. Six months later, the correct balance in the prepaid insurance account would be
7. Which of the following is not an advantage of the corporate form of organization?
8. Treasury stock should be shown on the balance sheet as a(n):
9. When the stockholders invest cash in the business, what is the effect?
10. The ending balance in retained earnings is shown in the:
11. A cash dividend of $500 was declared and paid to stockholders. The correct journal entry to record the declaration is:
12. If $3,000 has been earned by a company’s workers since the last payday in an accounting period, the necessary adjusting entry would be:
13. The accrual basis of accounting:
14. The need for adjusting entries is based on
15. Which of the following statements is false regarding the closing process?
16. Which of the following statements is true regarding the classified balance sheet?
17. The underlying assumptions of accounting includes all the following except:
18. Malloy Company began the accounting period with $60,000 of merchandise, and net cost of purchases was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period. The cost of goods sold of Frick Company for the period is:
19. A classified income statement consists of all of the following major sections except for:
20. A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:
21. Malloy Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of ending inventory using weighted-average is:
22. Malloy Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of goods sold using weighted-average is:
23. During a period of rising prices, which inventory method might be expected to give the highest net income?
24. The following information: related to the bank reconciliation of the ACME Company: In a bank reconciliation, deposits in transit should be:
25. In a bank reconciliation, deposits in transit should be