Exam answers 061691

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061691 value of money penn foster
Oct 4th, 2013

I am a qualified Chartered accountant and MBA in finance with over 6 years of experience. I assure you all correct, timely and accurate answers. please let me know if I can help you. thanks
Oct 4th, 2013

I need help with this exam 061691RR

Oct 21st, 2013

hey add me as a genius...then it wud be earsier to communicate

Oct 21st, 2013

u there?

Oct 21st, 2013

Penn Foster 061691RR -THE TIME VALUE OF MONEY 

1. Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. IfBrandonuses 5% of credit sales as its estimating uncollectible accounts, how much will the credit be to the allowance for doubtful accounts ifBrandonuses the percent of credit sales as its method of estimating uncollectible accounts?

2. Tammy Industries inadvertently debited a $5,000 betterment as an ordinary expense.  Which of the following will occur as a result of this mistake?

A. The asset will be understated by $5,000.

B. Retained earnings will be overstated by $5,000.

C. Net income will be overstated by $5,000.

D. The asset will be overstated by $5,000.

3. Use the _______ principle to estimate warranty liabilities.

A. matching

B. conservatism

C. objectivity

D. entity

4. Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. IfBrandonuses 5% of credit sales as its estimating uncollectable accounts, how much will the credit be to the allowance for doubtful accounts ifBrandonuses the estimate of aging receivables as its method of estimating uncollectable accounts?

5. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000; item B was appraised at $55,000; and item C was appraised at $60,000. The purchase price was $125,000. The amount at which item C should be recorded (rounded to the nearest dollar) is amount at which item C should be recorded (rounded to the nearest dollar) is

6. A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $0. The journal entry to record this transaction is

A. debit Loss on Disposal $6,000, debit Accumulated Depreciation— Truck for $50,000, and credit Truck for $56,000.

B. debit Truck for $56,000, credit Accumulated Depreciation— Truck for $50,000, and credit Gain on Disposal for $6,000.

C. debit Truck for $50,000, debit Loss on Disposal for $6,000 and credit Accumulated Depreciation— Truck for $56,000.

D. debit Accumulated Depreciation— Truck for $50,000 and credit Truck for $50,000.

7. A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a residual value of $1,600. Its useful life is determined to be three years. Using double-declining balance depreciation, the depreciation for 2012 to the nearest dollar will be

8. Brandon Corporation purchased a vein of mineral ore for $3,250,000. It is estimated that 15,000,000 tons of ore are available to be extracted. The salvage value is determined to be $400,000. The estimation depletion expense for this year's extraction of 1,760,000 tons of ore (rounded to the nearest dollar) is

9. Which of the following would be considered a cash equivalent?

A. Checks

B. Money orders

C. Currency

D. Time deposits 

10. Which of the following would not be a liability according to FASB's definition of a liability?

A. An obligation to provide goods or services in the future

B. The signing of a three-year employment contract at a fixed annual salary

C. An obligation that's estimated in amount

D. A note payable with no specified maturity date

11. Nick Company has cash of $33,000; net accounts receivable of $41,000; short-term investments of $15,000; and inventory of $25,000. It also has $30,000 in current liabilities and $50,000 in long-term liabilities. The quick ratio for Nick Company is

12. Mackey Company has a five-year mortgage for $100,000. In the first year of the mortgage, Mackey will report this liability as a

A. long-term liability of $100,000.

B. current liability of $20,000 and a long-term liability of $80,000.

C. current liability of $100,000.

D. current liability of $80,000 and a long-term liability of $20,000.

13. Taylor Company has given you the following information from its aging of accounts receivable. The current amount in the allowance for doubtful accounts is a $958 credit.

Current $24,400 2% uncollectible

31–60 days 7,350 8% uncollectible

61–90 days 3,380 15% uncollectible

91 and up 1,220 30% uncollectible

Using this information, what is the amount of the journal entry to record the  allowance for doubtful accounts?

14. Using a 365-day year, the maturity value of a 180-day note for $2,700 at 9% annual interest is (rounded to the nearest cent)

A. $119.84.

B. $2,821.50.

C. $2,943.00.

D. $2,819.84.

15. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000; item B was appraised at $55,000; and item C was appraised at $60,000. The purchase price was $125,000. The amount at which item B should be recorded is

A. ($55,000/$95,000) × $150,000.

B. ($55,000/$125,000) × $150,000.

C. ($55,000/$150,000) × $125,000.

D. ($55,000/$95,000) × $125,000.

16. Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What will Tammy Company record first to reinstate her account?

A. Debit Cash; credit Accounts Receivable/Margaret.

B. Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Margaret.

C. Debit Accounts Receivable/Margaret; credit Allowance for Doubtful Accounts.

D. Debit Uncollectible Accounts Expense; credit Accounts Receivable/Margaret.

17. Amanda Industries had total assets of $600,000; total liabilities of $175,000; and total stockholders' equity of $425,000. Amanda Industries' debt ratio is

A. 70.8%.

B. 17.1%.

C. 29.2%.

D. 41.2%.

18. A patent has amortization this year of $2,300. The journal entry would be

A. debit Accumulated Amortization— Patent, $2,300; credit Patent, $2,300.

B. debit Amortization Expense—Patent, $2,300; credit Patent, $2,300.

C. debit Accumulated Amortization— Patent, $2,300; credit Amortization Expense— Patent, $2,300.

D. debit Amortization Expense— Patent, $2,300; credit Accumulated Depreciation— Patent, $2,300.

19. Research and development costs (R&D) are generally

A. expensed and become part of the income statement.

B. listed as "current assets" on the balance sheet.

C. listed as "other intangibles" on the balance sheet.

D. listed as "long-term assets" on the balance sheet.

20. Which of the following is not a benefit to extending credit to customers?

A. Wider range of customers

B. Increased revenues

C. Increased profits

D. Bad-debt expenses


Oct 21st, 2013

r u seeking answers to these questions?

Oct 21st, 2013

1. A patent has amortization this year of $2,300. The journal entry would be
A. debit Accumulated Amortization— Patent, $2,300; credit Amortization Expense— Patent, $2,300.
B. debit Accumulated Amortization— Patent, $2,300; credit Patent, $2,300.
C. debit Amortization Expense— Patent, $2,300; credit Accumulated Depreciation— Patent, $2,300.
D. debit Amortization Expense—Patent, $2,300; credit Patent, $2,300.

2. Which of the following would not be considered a contingent liability?
A. Potential fines from the EPA
B. Cosigning a loan
C. Pending legal action
D. Mortgage payable

3. Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent)
A. $20.13
B. $1,520.13
C. $1, 584, 88
D. $1,605.00

4. Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. If Brandon uses 5% of credit sales as its estimating uncollectable accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the estimate of aging receivables as its method of estimating uncollectable accounts?
A. $5,067
B. $4,250
C. $5,525
D. $7,159

5. Which of the following would indicate poor internal control over accounts receivable?
A. The mailroom employees open the mail and give the cash receipts to another employee.
B. The same person handling cash receipts also records the accounts receivable transactions.
C. The person who handles accounts receivable wouldn’t write off accounts as uncollectable.
D. The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.

6. By not accruing warranty expense,
A. reported liabilities will be overstated, and net income will be understated.
B. reported expenses will be understated, and net income will be understated.
C. reported expenses will be overstated, and reported liabilities will be understated.
D. reported liabilities will be understated, and net income will be overstated.

7. Cash equivalents are
A. not liquid and carry high risk.
B. very liquid and carry little risk.
C. not liquid and carry little risk.
D. very liquid and carry high risk.

8. Which of the following would not be a liability according to FASB’s definition of a liability?
A. A note payable with no specified maturity date
B. The signing of a three-year employment contract at a fixed annual salary
C. An obligation to provide goods or services in the future
D. An obligation that’s estimated in amount

9. Which of the following is not a benefit to extending credit to customers?
A. Increased revenues
B. Bad-debt expenses
C. Wider range of customers
D. Increased profits

10. A warranty is an example of a/an _______ liability.
A. settled
B. estimated
C. known
D. contingent

11. Taylor Company has given you the following information from its aging of accounts receivable. The current amount in the allowance for doubtful accounts is a $958 credit. Using this information, what is the amount of the journal entry to record the allowance for doubtful accounts?
Current $24,400 2% uncollectible
31–60 days 7,350 8% uncollectible
61–90 days 3,380 15% uncollectible
91 and up 1,220 30% uncollectible

A. $541
B. $991
C. $2,457
D. $1,949

12. A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a residual value of $1,600. Its useful life is determined to be three years. Using double-declining balance depreciation, the depreciation for 2012 to the nearest dollar will be
A. $9,333.
B. $5,200.
C. $10,400.
D. $4,667.

13. If a $6,000, 10%, 10-year bond was issued at 104 on October 1, 2011, how much interest will accrue on December 31 if interest payments are made annually?
A. None
B. $104
C. $500
D. $150

14. Casey Company’s bank statement shows a bank balance of $43,267. The statement shows a bank service charge of $50 and a bank collection of $760 in Casey Company’s behalf. Casey’s book balance should be adjusted by a total of
A. +$760.
B. +$810.
C. +$710.
D. –$710.

15. Rick Company has cash of $143,000; net accounts receivable of $89,000; short-term investments of $35,000; and prepaid expenses of $40,000. It also has $50,000 in current liabilities and $80,000 in long-term liabilities. The quick ratio for Rick Company is
A. 3.34.
B. 6.14.
C. 5.34.
D. 4.64.

16. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000; item B was appraised at $55,000; and item C was appraised at $60,000. The purchase price was $125,000. The amount at which item B should be recorded is
A. ($55,000/$125,000) × $150,000.
B. ($55,000/$150,000) × $125,000.
C. ($($55,000/$95,000) × $125,000.
D. ($55,000/$95,000) × $150,000.

17. Which of the following would be considered a contingent liability?
A. Accounts payable obligation
B. Sales tax obligation
C. Pending legal action
D. Mortgage obligation

18. Which of the following marketable securities are reported at market value on the balance sheet date?
A. Available-for-sale and trading securities
B. Trading securities
C. Held-to-maturities securities
D. Available-for-sale securities

19. Research and development costs (R&D) are generally
A. listed as “long-term assets” on the balance sheet.
B. expensed and become part of the income statement.
C. listed as “current assets” on the balance sheet.
D. listed as “other intangibles” on the balance sheet.

20. Jewell Company has current assets of $56,000; long-term assets of $135,000; current liabilities of $44,000; and long-term liabilities of $90,000. Jewell Company’s debt ratio is
A. 239.3%.
B. 127.3%.
C. 70.2%.
D. 78.6%.


Oct 21st, 2013

or is it this one...please confirm...also send me the set of questions if they are different frm these two...

Oct 21st, 2013

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