CORRECT ANSWER: 686 - Update - Source with 165 Questions and 100% Ver...

CSUF ACCT 201A (Hoffman) Final Exam Latest Update - Source with 165 Questions and 100% Verified Detailed Correct Answers Guaranteed

A company can accelerate its cash receipts by all of the following except: - CORRECT

ANSWER: writing off receivables.

A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as: - CORRECT ANSWER: a long-term investment.

A company makes a credit sale of $750 on June 13, terms 2/10, n/30, on which it grants a return of $50 on June 16. What amount is received as payment in full on June 23? -

CORRECT ANSWER: $686

750-50=700

700*0.02=14

700-14=686

A company would minimize its depreciation expense in the first year of owning an asset if it used: - CORRECT ANSWER: a high estimated life, a high salvage value, and straight-line depreciation.

A ledger: - CORRECT ANSWER: is a record of all accounts maintained by a company and their amounts.

A receivable that is evidenced by a formal instrument and that normally requires the payment of interest is: - CORRECT ANSWER: a note receivable.

A revenue account: - CORRECT ANSWER: is increased by credits.

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A trial balance: - CORRECT ANSWER: will not balance if a correct journal entry is posted twice.

Able Towing Company purchased a tow truck for $60,000 on January 1, . It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, , before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including ) and the salvage value to $2,000. What was the depreciation expense for ? -

CORRECT ANSWER: $12,100

($60,000 - $12,000)/10 years = $4,800 per year.($60,000 - 2 x 4,800 = $50,400)

($50,400 - $2,000)/(6-2) = $12,100

Accounts and notes receivable are reported in the current assets section of the balance sheet at: - CORRECT ANSWER: cash (net) realizable value

Additions to plant assets are: - CORRECT ANSWER: capital expenditures.

Adjusting entries are made to ensure that: - CORRECT ANSWER: All of the above: -expenses are recognized in the period in which they are incurred -revenues are recorded in the period in which the performance obligation is satisfied -balance sheet and income statement accounts have correct balances at the end of an accounting period.

Adjustments for accrued revenues: - CORRECT ANSWER: increase assets and increase revenues.

Adjustments for prepaid expenses: - CORRECT ANSWER: decrease assets and increase expenses.

Adjustments for unearned revenues: - CORRECT ANSWER: decrease liabilities and increase revenues. 2 / 3

All of the following are required steps in the accounting cycle except: - CORRECT

ANSWER: prepare financial statements from the unadjusted trial balance.

An analysis and aging of the accounts receivable of Raja Company at December 31

reveal these data:

Accounts receivable: $800,000

Allowance for doubtful accounts per books before adjustment (credit): $50,000

Amounts expected to become uncollectible : $65,000

What is the cash realizable value of the accounts receivable at December 31, after

adjustment? - CORRECT ANSWER: $735,000

(800,000-65,000)

As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31, . This count did not take into consideration the following facts. Rogers Consignment Store currently has goods worth $35,000 on its sales floor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Railway on January 3. Determine the correct amount of inventory that Railway should

report. - CORRECT ANSWER: $215,000

(180,000+ 35,000)

As of December 31, , Rockford Corporation has assets of $3,500 and stockholders' equity of $1,500. What are the liabilities for Rockford as of December 31, ? -

CORRECT ANSWER: $2,000

(3,500-1,500)

Bennie Razor Company has decided to sell one of its old manufacturing machines on June 30, . The machine was purchased for $80,000 on January 1, 2018, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the

time of the sale? - CORRECT ANSWER: $18,000 loss

(80,000/10) x 4.5 years= 36,000

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