Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
acct207 exam 2 quest
acct207 exam 2 questions
| Question | Answer |
|---|---|
| segregation of duties means that a company assigns responsibilities so that... | responsibilities for related activities are assigned to two or more people |
| if a company returns an item to a supplier, the supplier will record the return as | sales returns and allowances |
| the direct write-off method | ignores matching principle |
| a merchandise company's beginning inventory plus merchandise purchases equals | goods available for sale |
| The LIFO inventory costing method assumes that the cost of the units most recently purchased are the | first to be assigned to cost of goods sold |
| whether unit costs are steadily rising or falling, the weighted average cost method always yields a cost of goods sold between that of FIFO and LIFO. true of false? | true |
| under the cost principle... | all reasonable and necessary costs of acquiring an assets and preparing it for use should be recorded as a cost of the asset |
| the main difference between ordinary repairs and extraordinary repairs is... | ordinary repairs are expenditures for routine maintenance and upkeep whereas extraordinary repairs increase an assets economic usefulness in the future through increased efficiency, capacity or longer life |
| What describes the purpose of depreciating a long-lived tangible asset? | to match the cost of the asset to the period in which it generate revenue |
| Goods held on consignment are | never owned by the consignee |
| Freight charges paid by the purchasers will increase inventoriable cost for the _____ of goods | buyer |
| The selections of an appropriate inventory cost flow assumption for an individual company is made by | managment |
| allowance for doubtful accounts is necessary because | when recording uncollectible accounts expense, it is not possible to know which specific accounts will not pay |
| the matching principle | necessitates the recording of an estimated amount for bad debts |
| if a company fails to record estimated bad debt expense | expenses are understated |
| if the amount of uncollectible account expense is understated at year end | net Accounts Receivable will be overstates |
| When the allowance method is used to accounts for uncollectible accounts, Bad debts expense is debited when | management estimates the amount of uncollectibles |
| the direct write-off method of accounting for uncollectible accounts | is not generally accepted as a basis for estimating bad debts |
| if an account is collected after having been previously written off | there will be both a debits and credit to accounts receivable |
| the declining-balance method of depreciation produces | a decreasing depreciation expense each period |
| when an asset is sold, a gain occurs when the | sale price exceed the book value of the asset sold |
| the book value of a plant asset is the difference between the | cost of the asset and the accumulated depreciation to date |
| a loss on disposal of a plant asset is reported in the financial statements | in the Other Expenses and Losses section to the income statement |
Created by:
jlaurenz