I have most of them done but would like to have these ones double checked... Please Help!!!
12. Research and development costs (R&D) are generally
A. listed as "long-term assets" on the balance sheet.
B. expensed and become part of the income statement.
C. listed as "other intangibles" on the balance sheet.
D. listed as "current assets" on the balance sheet.
I said A
24. Which marketable securities are reported at cost on the balance sheet date?
A. Trading securities
B. Trading and held-to-maturity securities
C. Available-for-sale securities
D. Held-to-maturity securities
I said A
27. By not accruing warranty expense,
A. reported expenses will be understated, and net income will be understated.
B. reported expenses will be overstated, and reported liabilities will be understated.
C. reported liabilities will be overstated, and net income will be understated.
D. reported liabilities will be understated, and net income will be overstated.
I said A
30. Which of the following marketable securities are reported at market value on the balance sheet date?
A. Available-for-sale and trading securities
B. Held-to-maturities securities
C. Trading securities
D. Available-for-sale securities
I said D
42. Cash equivalents are
A. not liquid and carry little risk.
B. not liquid and carry high risk.
C. very liquid and carry high risk.
D. very liquid and carry little risk.
I said B
61. Use the _______ principle to estimate warranty liabilities.
A. conservatism
B. objectivity
C. matching
D. entity
I said D
67. Which of the following would be considered a contingent liability?
A. Mortgage obligation
B. Sales tax obligation
C. Pending legal action
D. Accounts payable obligation
I said D
68. A repair that extends the useful life of an asset would be considered a/an
A. ordinary repair.
B. capital expense.
C. betterment.
D. extraordinary repair.
I said B
76. A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $500. The
journal entry to record this transaction is
A. debit Cash for $500, debit Truck for $50,000, debit Loss on Disposal for $5,500, and credit Accumulated Depreciation—
Truck for $56,000.
B. debit Loss on Disposal $6,000, debit Accumulated Depreciation—Truck for $50,000, and credit Truck for $56,000.
C. debit Cash for $500, debit Accumulated Depreciation—Truck for $50,000, debit Loss on Disposal for $5,500, and credit
Truck for $56,000.
D. debit Cash for $500, debit Loss on Disposal for $55,500, and credit Truck for $56,000.
I said B
90. Mackey Company has a five-year mortgage for $100,000. In the first year of the mortgage, Mackey
will report this liability as a
A. long-term liability of $100,000.
B. current liability of $100,000.
C. current liability of $80,000 and a long-term liability of $20,000.
D. current liability of $20,000 and a long-term liability of $80,000.
I said D
95. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000; item B
was appraised at $55,000; and item C was appraised at $60,000. The purchase price was $125,000. The
amount at which item C should be recorded (rounded to the nearest dollar) is
End of exam
A. $72,000.
B. $29,167.
C. $83,300.
D. $50,000.
I said B
98. Meranda Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method will be
A. $35,500.
B. $33,350.
C. $36,250.
D. $31,250.
I said D
99. Which of the following is not a benefit to extending credit to customers?
A. Increased revenues
B. Bad-debt expenses
C. Increased profits
D. Wider range of customers
I said B