Acc 291 Final Exam
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ACC 291 FINAL EXAM
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Description
ACC 291 Final Exam,
1) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?
Bad Debts Expense 15000 Allowances for Doubtful Accounts 15000
Bad Debts Expense 12000 Allowances for Doubtful Accounts 12000
Bad Debts Expense $12,000 Accounts Receivable $12,000
Bad Debts Expense $15,000 Accounts Receivable $15,000
2) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what is the amount of bad debts expense for that period?
$15,000
$12,000
$18,000
$8,000
3) Intangible assets
should be reported under the heading Property, Plant, and Equipment
should be reported as a separate classification on the balance sheet
should be reported as Current Assets on the balance sheet
are not reported on the balance sheet because they lack physical substance
4) Intangible assets are the rights and privileges that result from ownership of long-lived assets that
must be generated internally
are depletable natural resources
do not have physical substance
have been exchanged at a gain
5) The book value of an asset is equal to the
asset’s market value less its historic cost
blue book value relied on by secondary markets
replacement cost of the asset
asset’s cost less accumulated depreciation
6) Gains on an exchange of plant assets that has commercial substance are
deducted from the cost of the new asset acquired
deferred
not possible
recognized immediately
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Description
ACC 291 Final Exam,
1) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?
Bad Debts Expense 15000 Allowances for Doubtful Accounts 15000
Bad Debts Expense 12000 Allowances for Doubtful Accounts 12000
Bad Debts Expense $12,000 Accounts Receivable $12,000
Bad Debts Expense $15,000 Accounts Receivable $15,000
2) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what is the amount of bad debts expense for that period?
$15,000
$12,000
$18,000
$8,000
3) Intangible assets
should be reported under the heading Property, Plant, and Equipment
should be reported as a separate classification on the balance sheet
should be reported as Current Assets on the balance sheet
are not reported on the balance sheet because they lack physical substance
4) Intangible assets are the rights and privileges that result from ownership of long-lived assets that
must be generated internally
are depletable natural resources
do not have physical substance
have been exchanged at a gain
5) The book value of an asset is equal to the
asset’s market value less its historic cost
blue book value relied on by secondary markets
replacement cost of the asset
asset’s cost less accumulated depreciation
6) Gains on an exchange of plant assets that has commercial substance are
deducted from the cost of the new asset acquired
deferred
not possible
recognized immediately