Accounting

Question: Which of the following statement about VISA credit card sales is incorrect?
A
The credit card issuer makes the credit investigation of the customer.

B
The retailer is not involved in the collection process.

C
Two parties are involved.

D
The retailer receives cash more quickly than it would from individual customer on account.

Note: Not available
1. Report
Question: Morgan Retailers accepted $50,000 of Citibank VISA credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Morgan Retailers will include a credit to Sales of $50,000 and a debit(s) to:
A
Cash $48,000 and Services Charges Expense $2,000

B
Accounts Receivable $48,000 and Service Charge Expense $2,000

C
Cash $50,000

D
Accounts Receivable $50,000

Note: Not available
1. Report
Question: Bickner Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Streisand Co. The entry to record this transcation is as follows.
A

Title Dr Cr
Note Receivable $1030 ---
Accounts Receivable --- $1030

B

Title Dr Cr
Note Receivable $1000 ---
Accounts Receivable --- $1000

C

Title Dr Cr
Note Receivable $1000 ---
Sales --- $1000

D

Title Dr Cr
Notes Receivable $1020 ---
Accounts Receivable --- $1020

Note: Not available
1. Report
Question: Schlicht Co. holds Osgrove Inc's $10,000, 120-day, 9% note. The entry made by Schlicht Co. when the note is collected, assuming no interest has been previously accured, is:
A

Title Dr Cr
Cash $10,300 ---
Notes Receivable --- $10,300

B

Title Dr Cr
Cash $10,000 ---
Notes Receivable --- $10,000

C

Title Dr Cr
Accounts Receivable $10,300 ---
Notes Receivable --- $10,300

D

Title Dr Cr
Cash $10,300 ---
Notes Receivable --- $10,000
Interest Revenue --- $300

Note: Not available
1. Report
Question: Erin Danielle Company purchase equipment and incurred the following costs.
Cash price $24,000
Sales taxes $1,200
Insurance during transit $200
Installation and testing $400
Total Costs $25,800
What amount should be recorded as the cost of the equipment?
A
$24,000

B
$25,200

C
$25,400

D
$25,800

Note: Not available
1. Report
Question: Depreciation is a process of:
A
valuation.

B
cost allocation.

C
cash accumulation.

D
appraisal

Note: Not available
1. Report
Question: Micah Barlett Company purchase equipment on Janurary 1,2001, at a total invoice cost $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2002, if the straight line method of depreciation is used is:
A
$80,000

B
$160,000

C
$78,000

D
$156,000

Note: Not available
1. Report
Question: Ann Torbert purchase a truck for $11,000 on January 1, 2001. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31,2002, can be computed by the following formula:
A
($11,000 / Total estimated activity) x Units of activity for 2002

B
($10,000 /Total estimated activity) x Units of activity for 2002

C
($11,000 / Total estimated activity) x Units of activity for 2001 and 2002

D
($10,000 / Total estimated activity) x Units of activity for 2001 and 2002

Note: Not available
1. Report
Question: When there is a change in estimated depreciation:
A
previous depreciation should be corrected.

B
current and future year's depreciation should be revised.

C
only future year's depreciation should be revised.

D
None of the above.

Note: Not available
1. Report
Question: Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000 and paid $10,000 cash for a similar new machine. At what amount should be machine acquired in the exchange be recorded on Schopenhauer's books?
A
$45,000

B
$46,000

C
$49,000

D
$50,000

Note: Not available
1. Report

Title	Dr	Cr
Note Receivable	$1030	---
Accounts Receivable	---	$1030

Title	Dr	Cr
Note Receivable	$1000	---
Accounts Receivable	---	$1000

Title	Dr	Cr
Note Receivable	$1000	---
Sales	---	$1000

Title	Dr	Cr
Notes Receivable	$1020	---
Accounts Receivable	---	$1020

Title	Dr	Cr
Cash	$10,300	---
Notes Receivable	---	$10,300

Title	Dr	Cr
Cash	$10,000	---
Notes Receivable	---	$10,000

Title	Dr	Cr
Accounts Receivable	$10,300	---
Notes Receivable	---	$10,300

Title	Dr	Cr
Cash	$10,300	---
Notes Receivable	---	$10,000
Interest Revenue	---	$300

Cash price	$24,000
Sales taxes	$1,200
Insurance during transit	$200
Installation and testing	$400
Total Costs	$25,800

First Prev 8 9 10 11 12 Next Last

Question: Which of the following statement about VISA credit card sales is incorrect?

Question: Morgan Retailers accepted $50,000 of Citibank VISA credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Morgan Retailers will include a credit to Sales of $50,000 and a debit(s) to:

Question: Bickner Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Streisand Co. The entry to record this transcation is as follows.

Question: Schlicht Co. holds Osgrove Inc's $10,000, 120-day, 9% note. The entry made by Schlicht Co. when the note is collected, assuming no interest has been previously accured, is:

Question: Erin Danielle Company purchase equipment and incurred the following costs.
Cash price $24,000
Sales taxes $1,200
Insurance during transit $200
Installation and testing $400
Total Costs $25,800
What amount should be recorded as the cost of the equipment?

Question: Depreciation is a process of:

Question: Ann Torbert purchase a truck for $11,000 on January 1, 2001. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31,2002, can be computed by the following formula:

Question: When there is a change in estimated depreciation:

Question: Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000 and paid $10,000 cash for a similar new machine. At what amount should be machine acquired in the exchange be recorded on Schopenhauer's books?

Question: Which of the following statement about VISA credit card sales is incorrect?

Question: Morgan Retailers accepted $50,000 of Citibank VISA credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Morgan Retailers will include a credit to Sales of $50,000 and a debit(s) to:

Question: Bickner Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Streisand Co. The entry to record this transcation is as follows.

Question: Schlicht Co. holds Osgrove Inc's $10,000, 120-day, 9% note. The entry made by Schlicht Co. when the note is collected, assuming no interest has been previously accured, is:

Question: Erin Danielle Company purchase equipment and incurred the following costs.Cash price$24,000Sales taxes$1,200Insurance during transit$200Installation and testing$400Total Costs$25,800 What amount should be recorded as the cost of the equipment?

Question: Depreciation is a process of:

Question: Ann Torbert purchase a truck for $11,000 on January 1, 2001. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31,2002, can be computed by the following formula:

Question: When there is a change in estimated depreciation:

Question: Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000 and paid $10,000 cash for a similar new machine. At what amount should be machine acquired in the exchange be recorded on Schopenhauer's books?

Question: Erin Danielle Company purchase equipment and incurred the following costs.
Cash price $24,000
Sales taxes $1,200
Insurance during transit $200
Installation and testing $400
Total Costs $25,800
What amount should be recorded as the cost of the equipment?