accounting test please help?
Points: 3)
Expected useful life is
a. calculated when the asset is sold.
b. estimated at the time that the asset is placed in service.
c. determined each year that the depreciation calculation is made.
d. none of the answers are correct.
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10. (Points: 3)
When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.
a. True
b. False
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11. (Points: 3)
Pia and Ramona are partners who share income in the ratio of 3:2. Their capital balances are $80,000 and $120,000 respectively. Income Summary has a credit balance of $40,000. What is Pia’s capital balance after closing Income Summary to Capital?
a. $60,000
b. $104,000
c. $56,000
d. $64,000
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12. (Points: 3)
Ofelia and Teresa share income and losses in a 2:1 ratio after allowing for salaries to Ofelia of $48,000 and $60,000 to Teresa. Net income for the partnership is $132,000. Income should be divided as follows:
a. Ofelia, $56,000; Teresa, $76,000
b. Ofelia, $60,000; Teresa, $72,000
c. Ofelia, $72,000; Teresa, $60,000
d. Ofelia, $64,000; Teresa, $68,000
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13. (Points: 3)
Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?
a. Employment Withholding Allowance Certificate (W-4)
b. Wage and Tax Statement (Form W-2)
c. Employer's Quarterly Federal Tax Return (Form 941)
d. 401k plans
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14. (Points: 3)
The balance of the Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.
a. True
b. False
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15. (Points: 3)
The salary allocation to partners used in dividing net income would also appear as salary expense on the partnership income statement.
a. True
b. False
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16. (Points: 3)
An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require a
a. debit to Bad Debt Expense for $5,200.
b. debit to Bad Debts Expense for $4,000.
c. debit to Bad Debts Expense for $2,800.
d. credit to Allowance for Doubtful Accounts for $5,000.
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17. (Points: 3)
The direct write-off method of accounting for uncollectible accounts
a. emphasizes balance sheet relationships.
b. is not generally accepted as a basis for estimating bad debts.
c. emphasizes cash realizable value.
d. emphasizes the matching of expenses with revenues.
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18. (Points: 3)
An aging of a company's accounts receivable indicates that $5,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
a. debit to Allowance for Doubtful Accounts for $3,800.
b. debit to Bad Debts Expense for $3,800.
c. debit to Allowance for Doubtful Accounts for $5,000.
d. credit to Allowance for Doubtful for $5,000.
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19. (Points: 3)
Generally, all deductions made from an employee's gross pay are required by law.
a. True
b. False
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20. (Points: 3)
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 15%, salary allowances of $22,000 and $20,000 respectively, and the remainder equally. How much of the net income of $90,000 is allocated to Xavier?
a. $30,250
b. $47,750
c. $45,000
d. $42,250
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21. (Points: 3)
A 90-day, 12% note for $20,000, dated April 10, is received from a customer on account. If the note is discounted at 15% on May 20, the days in the discount period are
a. 50
b. 90
c. 120
d. 40
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22. (Points: 3)
Which intangible assets are amortized over their useful life?
a. trademarks
b. goodwill
c. patents
d. all of the above
