Exam (elaborations) Final_Milestone_with_Answers.

You passed this Milestone 1 The value of a machine was $400,000 when purchased new one year ago. It has an expected life of five years and the income statement shows the straight line depreciation rate as 20%. Using double declining balance depreciation, what is the value of the machine at the end of year two?  $144,000 $160,000  $96,000 $240,000 2 Using the information shown here, which of the following is the asset turnover ratio?  0.43 0.86  0.56  0.51 3 Which of the following is Sue’s ending owner’s equity, in her statement of changes in owner's equity, if her records show $21,000 in investment by owner, $78,000 in net income, $18,000 in expenses and $14,000 in owner drawings?  $96,000  $53,000  $57,000  $85,000 4 Which of the following allowances for bad debt should the company enter into their financials for an Accounts Receivable account with a balance of $50,000 if the company estimates that 1.9% of receivables will be uncollectible?  $950.00  $9,500.00  $10,250.00 This study source was downloaded by from CourseH on :44:49 GMT -05:00 This study resource was shared via CourseH  $1,025.00 5 What is the correct time of the month to make an adjusting entry?  At the end of the month  At the beginning of the month  Whenever the accounts need to be brought into balance  After preparing the balance sheet 6 A company's year-end financial statements lists the following figures. Net income $49,500 Net sales $550,000 Current assets $1,050,00 0 Current liabilities $115,000 Total assets $2,200,00 0 Based on this information, what is the company's rate of return on sales?  25%  2.32%  9%  1.91% 7 Which of the following organizations might Daniel be interested in joining if he recently passed his certified public accountancy exams?  IRS  AICPA  FASB  GAO 8 Which of the following is a violation of the Sarbanes-Oxley Act?  Declaring bankruptcy