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World Works. Item No: 1 of 40 Time Remaining: 0:40:00 Question: The situation in which a company uses its accounts receivable to obtain a loan i s called ___________. In this process, the company usually maintains control of the receivables, collects from customers, and forwards the proceeds to the lendi ng institution to liquidate the loan. a. b. c. d. Assigning Factoring Sales Pledging

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 2 of 40 Time Remaining: 0:39:22 Question: A manufacturing firm sells a parcel of land next to one of its warehouses. What type of activity is this? a. b. c. d. ns Flag as inappropriate Powered by Primary operating activity, which is recurring Primary operating activity, which is nonrecurring A recurring activity, which is peripheral to primary operations A nonrecurring activity, which is peripheral to primary operatio

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 3 of 40 Time Remaining: 0:38:17 Question: When the ______________ method is used to estimate uncollectible accounts, the b alance in the Allowance for Uncollectible Accounts is adjusted to reflect the de sired ending balance.

a. b. c. d.

AP Aging Uncollectible Forecasting Progressive Aging Aging of Accounts Receivable

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 4 of 40 Time Remaining: 0:36:40 Question: Which of the following costs is capitalized for a self-constructed asset? a. b. c. d. Interest prior to construction Interest during construction Interest after construction All of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 5 of 40 Time Remaining: 0:36:11 Question: Natural resources are referred to as __________________. a. b. c. d. Intangible assets Plant assets Wasting assets None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 6 of 40 Question: Time Remaining: 0:35:44

Which of the following is a functional factor in determining depreciation? a. b. c. d. Salvage value Obsolescence Market cost Market value

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 7 of 40 Time Remaining: 0:35:11 Question: XYZ Company sells a residential lot to Mr. A for $140,000. The cost assigned to the lot by XYZ Company is $56,000. The contract calls for five annual payments o f $28,000. Each payment is received on time at the end of each of the five years . If XYZ Company recognizes income under the cost-recovery-first method, how muc h income would they recognize in Year 3? a. b. c. d. $0 $16,800 $28,000 $50,400

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 8 of 40 Time Remaining: 0:34:10 Question: XYZ Company reports Accounts Receivable of $60,000 and an Allowance for Uncollec tible Accounts of $6,000 on its December 31 Year 1 Balance Sheet. During Year 2, credit sales total $1,800,000, collections on account total $1,680,000, and wri te-offs total $9,600. After aging its Accounts Receivable, XYZ Company estimates that 10 percent of its Accounts Receivable at December 31 of Year 2 will be unc ollectible. What is the balance in Accounts Receivable on December 31 of Year 2? a. b. c. d. $164,400 $166,800 $170,400 $174,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 9 of 40 Time Remaining: 0:33:22 Question: XYZ Company purchases a machine with a cost of $20,000, a salvage value of $2,00 0, and life of five years. If the company uses the sum-of-the-years digits metho d, what would the depreciation charge be for the first year? a. b. c. d. $1,200 $6,000 $6,667 $8,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 10 of 40 Time Remaining: 0:32:16 Question: Which of the accounts below would NOT be treated as a reduction in sales revenue on the income statement? a. b. c. d. Sales Discounts Taken Sales Allowances Sales Returns Bad Debts Expense

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 11 of 40 Time Remaining: 0:31:26 Question: A professional soccer team pays a signing bonus to one of its new players. What type of activity is this?

a. b. c. d. ns

Primary operating activity, which is recurring Primary operating activity, which is nonrecurring A recurring activity, which is peripheral to primary operations A nonrecurring activity, which is peripheral to primary operatio

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 12 of 40 Time Remaining: 0:30:51 Question: The denominator of the sum-of-the-years digits fraction is ______________. a. b. c. d. n+n n/2 n+1/2 n(n+1)/2

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 13 of 40 Time Remaining: 0:29:55 Question: Which of the following accounts is debited if depreciation is a production cost? a. b. c. d. Finished Goods Raw Materials COGS Work in Process Inventory

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Item No: 14 of 40 Time Remaining: 0:29:23 Question: The legal right to future benefits of an invention is referred to as a/an ______ _________. a. b. c. d. expense patent copyright trademark

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 15 of 40 Time Remaining: 0:28:45 Question: Which of the following accounts is credited for depreciation? a. b. c. d. Depreciation Expense Accumulated Depreciation Fixed Assets Depletion

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 16 of 40 Time Remaining: 0:28:25 Question: Which of the following costs would NOT be included in the cost of machinery? a. b. c. d. Invoice price Installation costs Testing of machinery prior to its intended use All of the above would be included.

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Changing How the World Works. Item No: 17 of 40 Time Remaining: 0:27:54 Question: Early in Year 1, XYZ Company begins construction of an office building. The cont ract price for the construction is $23,400,000. The project, which is completed in Year 3, incurs costs as follows: Year 1: $5,200,000 Year 2: $6,500,000 Year 3: $3,900,000 If XYZ Company recognizes income under the completed contract method, how much i ncome would they recognize on the office building contract in Year 3? a. b. c. d. $1,950,000 $3,900,000 $5,850,000 $7,800,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 18 of 40 Time Remaining: 0:27:36 Question: How are property, plant, and equipment and related accumulated depreciation gene rally disclosed in the Balance Sheet? a. By the original cost less the accumulated depreciation b. By the accumulated depreciation and the book value c. By the book value and by providing the detail of cost and accumu lated depreciation in the notes d. All of the above methods are used. Flag as inappropriate Powered by

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 19 of 40 Time Remaining: 0:27:06 Question: When the ______________ method is used to estimate uncollectible accounts, the p

rovision for uncollectible accounts is added to the existing balance in the Allo wance for Uncollectible Accounts. a. b. c. d. Progressive Forecast Bad Debt Analysis Percentage of Sales Aging

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 20 of 40 Time Remaining: 0:26:36 Question: A Florida hotel chain's properties located on the Emerald Coast are destroyed wh en the area is devastated by an earthquake. What type of activity is this? a. b. c. d. ns Flag as inappropriate Powered by Primary operating activity, which is recurring Primary operating activity, which is nonrecurring A recurring activity, which is peripheral to primary operations A nonrecurring activity, which is peripheral to primary operatio

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 21 of 40 Time Remaining: 0:26:04 Question: Which of the following statements about selecting the best depreciation method f or tax purposes is incorrect? a. The goal should be to maximize the present value of the tax savi ngs from the depreciation deductions. b. The asset should be written off as soon as possible. c. Earlier depreciation deductions are more valuable than later one s. d. A decelerated depreciation method should be employed. Flag as inappropriate Powered by

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 22 of 40 Time Remaining: 0:25:27 Question: Small adjustments to and replacement of plant assets that have little or no eff ect on useful life are called _______________. a. b. c. d. payroll repairs depreciation marketing

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 23 of 40 Time Remaining: 0:24:48 Question: Which of the following costs is normally expensed when incurred, even though it has future benefits? a. b. c. d. Payroll COGS Office supplies Advertising

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 24 of 40 Time Remaining: 0:24:15 Question: Which of the following events reduces total assets? a. b. d. c. An accounts receivable is collected. A customer returns merchandise for credit. Uncollectible accounts are written off under the allowance metho

d.

None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 25 of 40 Time Remaining: 0:23:43 Question: An asset impairment occurs when the then-current book value of an asset exceeds ____________. a. b. c. d. the sum of expected undiscounted cash flows of the asset the market value of the asset the discounted future cash flows of the asset None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 26 of 40 Time Remaining: 0:22:26 Question: XYZ Company buys a building on April 1, 2008 for $100,000. The building has a ph ysical life of 50 years, but XYZ Company anticipates using the building for 50 y ears. At the end of 50 years, the building will have no disposal value, but at t he end of 30 years it will have a disposal value of $5,000. If the company uses the straight line method, how much depreciation would be recorded on December 31 , 2008? a. b. c. d. $3,167 $2,000 $1,500 $2,375

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Item No: 27 of 40 Time Remaining: 0:22:06 Question: XYZ Company had sales of $585,000 during Year 1, $260,000 of which were on accou nt. The account balances in Accounts Receivable and in Allowance for Uncollectib le Accounts on December 31 of Year 1 were $78,000 and $10,400 respectively. Past experience indicates that 5 percent of all credit sales will not be collected. How much should XYZ Company debit to the Bad Debt Expense Account? a. b. c. d. $39,000 $13,000 $6,500 26,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 28 of 40 Time Remaining: 0:21:46 Question: Late in Year 1, XYZ Company signs a contract to construct a bridge for the Flori da Dept. of Transportation. The contract price is $42,000,000. The costs during the 3-year construction period are as follows: Year 2: $10,000,000 Year 3: $15,000,000 Year 4: $5,000,000 If XYZ Company recognizes income under the percentage-of-completion method, how much income would they recognize on the bridge contract in Year 2? a. b. c. d. $4,000,000 $10,000,000 $12,000,000 $14,000,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 29 of 40 Time Remaining: 0:21:30 Question: XYZ Company had sales of $585,000 during Year 1, $260,000 of which were on accou nt. The account balances in Accounts Receivable and in Allowance for Uncollectib le Accounts on December 31 of Year 1 were $78,000 and $10,400 respectively. Past

experience indicates that 5 percent of all credit sales will not be collected. An aging of accounts indicated that $19,500 of the receivable balance would not be collected. How much should XYZ Company debit to the Bad Debt Expense Account? a. b. c. d. $29,900 $13,000 $19,500 $9,100

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 30 of 40 Time Remaining: 0:21:16 Question: Which of the following is the same as an outright sale? a. b. c. d. Assignment of receivables Factoring of receivables Pledging of receivables Collection of receivables

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 31 of 40 Time Remaining: 0:20:53 Question: Which of the following is a type of intangible asset that appears on the balance sheet only when one company is acquired by another? a. b. c. d. Goodwill Capital Assets Patents Trademarks

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Changing How the World Works. Item No: 32 of 40 Time Remaining: 0:20:24 Question: XYZ Company acquires a machine for $20,000 in 2000 and depreciates it on the str aight line basis, no salvage value, for two years based on an estimated ten-year life. In 2002 it was determined that the remaining life was only four years ins tead of eight. According to generally accepted accounting principles, what amoun t of depreciation should be recorded for 2002? a. b. c. d. $5,000 $4,000 $3,333 $2,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 33 of 40 Time Remaining: 0:20:07 Question: What is the proper accounting for all research and development costs when incurr ed? a. b. c. d. Capitalize Liability Expense Asset

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 34 of 40 Time Remaining: 0:19:42 Question: Which of the following groups assets into one of seven classes for tax depreciat ion? a. b. c. MACRS Double declining method Straight line depreciation

d.

Accelerated depreciation

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 35 of 40 Time Remaining: 0:19:12 Question: Which of the following is a characteristic of grouping assets into one of seven life classes? a. b. c. d. Sum-of-the-years digits method Modified accelerated cost recovery system Declining balance method None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 36 of 40 Time Remaining: 0:18:47 Question: On January 1, 2007, XYZ Company has machinery on the books that originally cost $200,000. In 2007, the following expenditures were made: Minor Repairs: $5,000 IMproveMents: $10,000 Additions: $37,000 Given the above data, how much would be recorded in the Machinery Account on Dec ember 31,2007? a. b. c. d. $252,000 $247,000 $235,000 $225,000

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Changing How the World Works. Item No: 37 of 40 Time Remaining: 0:18:30 Question: The sum-of-the-years digits method is an example of a/an ________________. a. b. c. d. accelerated method double declining method MACRS straight line method

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 39 of 40 Time Remaining: 0:17:17 Question: XYZ Company generates five new products in 2008. The interest capitalized for th ese items is referred to as __________________. a. b. c. d. self-constructed assets purchased fixed assets fully depreciated assets expensed purchases

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 40 of 40 Time Remaining: 0:16:37 Question: Which of the following basic patterns would be appropriate for allocation of int angibles? a. b. c. d. Expense immediately Straight line depreciation Accelerated depreciation No depreciation

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1. 2. 3. 4. 5. 6. 7. 8.

Accounting Capitalization Classification Depreciation Depreciation Methods Doubtful Accounts Operating Cycle Revenue Calculation

60% 75% 17% 29% 40% 0% 67% 33%