Which of the following is not considered a type of long-lived asset?
(A) Accounts receivable (B) Land (C) Plant and equipment (D) Natural resources Answer (A): Accounts receivable Explanation: Accounts receivable (AR)... View Article
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Which of the following would be amortized?
(A) Franchises (B) Equipment (C) Oil wells (D) Land Answer (C): Oil wells Explanation: Amortization is a bookkeeping method used... View Article
Which of the following is not an intangible asset?
(A) Trademarks (B) Patents (C) Copyrights (D) Land Answer (D): Land Explanation: An intangible asset or resource is an asset... View Article
A perpetual inventory system:
(A) Assures that a company will never run out of inventory (B) Updates the inventory figures each time a transaction... View Article
How is inventory classified on the financial statement?
(A) As an asset (B) As a liability (C) As a revenue (D) An expense Answer (A): As an asset... View Article
Which of the following would be classified as cash on a company’s balance sheet?
(A) IOUs (B) Cash at a bank in a country at war with the united states (C) Stamps (D) None... View Article
Documents used to control checking accounts do not include:
(A) Deposit tickets (B) Bank statements (C) Scorecards (D) Signature cards Answer (C): Scorecards Explanation: A balanced scorecard is a... View Article
Which of the following is not an aspect of good internal control?
(A) Performance of audits (B) Assignment of responsibility for each duty to a large number of employees (C) Use of... View Article
What is an imprest system?
(A) A system restricted to the payment of liabilities (B) A system that is controlled by having a clearly defined... View Article
Which of the following is not considered cash?
(A) Money and coins (B) Cheques and money orders (C) IOUs (D) Unrestricted, accessible amounts in foreign banks Answer (C):... View Article
The lower-of-cost -or market rule is an example of:
(A) Matching (B) Consistency (C) Conservatism (D) Going concern Answer (C): Conservatism Explanation: The conservatism concept is an idea in... View Article
How will an intangible asset which has been purchased from another entity be recorded?
(A) As a revenue expenditure (B) As liability (C) As a capital expenditure (D) As a gain on sale Answer... View Article
What is a copyright?
(A) The right, granted by a governmental agency, to the exclusive use of a product or process (B) A grant... View Article
In the periods of rising costs, which inventory cost flow method results in a higher cost of goods sold, a lower ending inventory, and a smaller net income?
(A) Specific unit (B) Weighted average (C) FIFO (D) LIFO Answer:(D) LIFO Explanation: The last in, first out (LIFO) is... View Article
What is the fair market value of an item?
(A) The amount that a buyer would pay for the item under a fair barter system (B) The amount that... View Article
Which of the following is associated with the development of competent, reliable, employees?
(A) Proper training that enables personnel to perform their jobs (B) Creation of a sense of employee loyalty to the... View Article
To what account if net purchases is closed?
(A) Income summary (B) Costs of goods sold (C) Inventory (D) It’s not closed, it is a balance sheet account... View Article
Which of the following is not a common adjustment to the purchases account?
(A) Costs incurred getting an item to the merchandiser (B) Items that arrive damaged or otherwise unacceptable to the merchandiser... View Article
What is the declining balance method?
The declining balance method or technique, otherwise called the reducing balance technique, is great for resources that rapidly lose their... View Article
What is the difference between the straight-line method and the diminishing balance method?
The difference between the straight-line method of depreciation and the diminishing balance method of depreciation is as follows: BASIS OF... View Article
