ACCT 220- Unit 4 Final Exam

Which of the following allowances for bad debt should the company enter into their financials for an Accounts Receivable account with a balance of $1,500,000 if the company estimates that 3.3% of receivables will be uncollectible? $60,000 $90,000 $37,500 $49,500 CONCEPT Allowance Method: Percentage of Net Credit Sales and Percentage of Receivables 2 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%. 2/14 Using double declining balance depreciation, what is the value of the machine at the end of year two? $96,000 $160,000 $144,000 $240,000 CONCEPT Accelerated Depreciation 3 Which of the following is NOT depreciated because it does not get used up? Automobiles Buildings 3/14 Land Land fixtures CONCEPT Depreciation 4 Which journal entry below correctly shows how the allowance method would be implemented for a customer who owes $5,700? 4/14 CONCEPT Uncollectible Accounts 5 Based on the above information, what amount would be recorded in accounts receivable at 1-30 days? $15,000 $75,000 $25,000 $50,000 CONCEPT Allowance Method: Aging Receivables 6 5/14 Considering the information in the general journal shown here, which of the following is the correct percent of credit sales that are uncollectible? 7% 9% 2% 5% CONCEPT Allowance Method: Percentage of Net Credit Sales and Percentage of Receivables 7 Given the information shown here, which of the following is the current ratio? 7/25/2020 Sophia :: Welcome 0.80 0.64 0.50 0.62 CONCEPT Ratio Analysis 8 Jill purchased a lot (i.e., land) for $35,000 on which to build her store. What kind of activity on a statement of cash flows does this exemplify? Financing activity Capital activity Operating activity Investing activity CONCEPT Statement of Cash Flows 9 Which of the following internal controls has Jim implemented at his company if he hires an outside auditing firm to review the company's financial records? 7/25/2020 Sophia :: Welcome Risk assessment Monitoring processes Information and communication systems Control environment CONCEPT Internal Controls and Reconciliations 10 Which of the following internal control systems does TAP Technology, Inc. use when it updates its employee handbook to reflect new company policies? Control environment Monitoring process Information and communication system Control activity CONCEPT Internal Controls and Reconciliations 11 Which of the following examples can be classified as an accounts receivable? Terry sent a specialty cage supplier a payment on account. Terry took a $500 deposit for the upcoming stay of the boa constrictor.