Unit 7 Quiz + 5 Question

Unit 7 Quiz + 5 Question

1. When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called (Points : 2)a. first-in, last-out.b. last-in, first-out.c. first-in, first-out.d. average cost.2. Allowance for Doubtful Accounts is listed on the balance sheet under the caption (Points : 2)a. stockholders equity.b. investments.c. fixed assets.d. current assets.3. In reference to a promissory note, the person who makes the promise to pay is called the (Points : 2)a. maker.b. payee.c. seller.d. receiver.4. The two methods of accounting for uncollectible receivables are the allowance method and the (Points : 2)a. equity method.b. direct write-off method.c. interest method.d. cost method.5. Receivables are usually a significant portion ofa. total current liabilities.b. total liabilities.c. total current assets.d. total assets.6. A note receivable due in 18 months is listed on the balance sheet under the captiona. long-term liabilities.b. fixed assets.c. current assets.d. investments.7. A note receivable due in five years is listed on the balance sheet under the caption (Points : 2)a. investments.b. current assets.c. fixed assets.d. stockholders equity.8. A 60-day, 12% note for $15,000 dated May 1 is received from a customer on account. The maturity value of the note isa. $15,300.b. $15,000.c. $14,700.d. $16,800.9. The due date of a 90-day note dated July 5 is (Points : 2a. September 30.b. October 2.c. October 3.d. October 1.10. The inventory data for an item for November are: Nov. 1Inventory25 units at $2010Purchased30 units at $2130Purchased10 units at $22Sold35 unitsUsing the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30? (Points : 2)a. $640b. $605c. $623d. $66011. What type of account is Allowance for Doubtful Accounts?a. Contra assetb. Assetc. Revenued. Expense12. The presentation of net accounts receivable on the balance sheet will be most accurate under the (Points : 2)a. direct write-off method.b. estimate based on the percentage of sales method.c. estimate based on analysis of receivables.d. none of these.13. The inventory method that assigns the most recent costs to cost of goods sold isa. FIFO.b. LIFO.c. average cost.d. specific identification.14. The amount of the promissory note plus the interest earned on the due date is called the (Points : 2a. realizable value.b. maturity value.c. face value.d. net realizable value15. Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debiteda. at the end of each accounting period.b. when a credit sale is past due.c. whenever a pre-determined amount of credit sales have been made.d. when an account is determined to be worthless.


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