AAMI ACCOUNTING 2 CORRECT TEST PAPER QUESTIONS AND ANSWERS SURE A.pdf

AAMI ACCOUNTING 2 CORRECT TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔Acquisition Cost-Accumulated depreciation - ✔✔Book value

✔✔All expenses appear on - ✔✔Income statement

✔✔The periodic allocation of costs of intangible assets is referred to as -
✔✔Amortization

✔✔The value of an asset expected to have at the end of its useful life - ✔✔Salvage
value

✔✔The cost added to the value of an assets acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost

✔✔Accumulated depreciation appears on which financial statement - ✔✔Trial balance
or
Balance sheet

✔✔What rate do we assume when we use the declining balance method of depreciation
- ✔✔.40

✔✔What are the 4 methods of calculating depreciation - ✔✔Straight line method
Units of Output
Sum of years digits
Double declining method

✔✔Acquisition cost-Accumulated depreciation - ✔✔Book value

✔✔What are the accelerated methods of depreciation - ✔✔Double declining method
Sum of years digits

, ✔✔Which depreciation method establishes the same depreciation expense per year -
✔✔Straight line method

✔✔Which depreciation method establishes the same depreciation expense per use -
✔✔Units of output method

✔✔Acquisition cost-Salvage value/Useful life in years - ✔✔Annual depreciation
expense

✔✔Acquisition cost-Salvage value/Units of output - ✔✔Depreciation expense per use

✔✔Journal Entry: purchase of goods to sell on account w/ a freight charge - ✔✔Debit:

merchandise purchases
freight in

Credit:

Cash

✔✔A company that purchases finished goods for resale - ✔✔Merchandising company

✔✔Journal Entry: Payment on account and take advantage of early discount - ✔✔Debit:

Accounts Payable

Credit:

Cash
Purchase discount

✔✔Journal Entry: Company purchases goods to sell on account - ✔✔Debit:

Merchandise Purchases

Credit:

Accounts Payable

✔✔Journal Entry: Returned purchased goods to sell that were originally bought for cash
- ✔✔Debit:

Cash
Purchase discount