Accting 400 Final Exam
University of Phoenix
ACC/400 Accounting for Decision Making
Final Exam
PLEASE PUT YOUR ANSWERS ON THE EXCEL SPREADSHEET
151 Points
PART I — MULTIPLE CHOICE -2 pts each (40 points)
Instructions
Designate the best answer for each of the following questions.
1. A measure of a company’s solvency is the a. acid-test ratio. b. current ratio. c. times interest earned ratio. d. asset turnover ratio.
2. Allowance for Doubtful Accounts is presented as a(n) a. addition to Accounts Receivable on the balance sheet. b. operating expense on the income statement. c. deduction from Sales on the income statement. d. contra asset on the balance sheet.
3. The financial statements of the Colter Manufacturing Company reports net sales of $400,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of year, respectively. What is the receivables turnover ratio for Colter? a. 6.7 times b. 10 times c. 5 times d. 8 times
4 . Lexter Company has a balance of $65,000 in Accounts Receivable and a $5,000 credit balance in Allowance for Doubtful Accounts. If a specific customer's account with a balance of $500 is written off as uncollectible, the cash (or net) realizable value of the accounts receivable will be a. $64,500. b. $60,000. c. $65,500. d. $60,500.
5. Martin Textile purchased machinery for $50,000 eight years ago. It was expected to have a useful life of ten years, no salvage value, and was depreciated using the straight-line method. At the end of its eighth year of use it was retired from service and given to a junk dealer. The entry to record the retirement includes a a. debit to Loss on Disposal for $10,000. b. debit to Machinery for $50,000. c. debit to Depreciation Expense for $10,000. d. credit to
ACC/400 Accounting for Decision Making
Final Exam
PLEASE PUT YOUR ANSWERS ON THE EXCEL SPREADSHEET
151 Points
PART I — MULTIPLE CHOICE -2 pts each (40 points)
Instructions
Designate the best answer for each of the following questions.
1. A measure of a company’s solvency is the a. acid-test ratio. b. current ratio. c. times interest earned ratio. d. asset turnover ratio.
2. Allowance for Doubtful Accounts is presented as a(n) a. addition to Accounts Receivable on the balance sheet. b. operating expense on the income statement. c. deduction from Sales on the income statement. d. contra asset on the balance sheet.
3. The financial statements of the Colter Manufacturing Company reports net sales of $400,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of year, respectively. What is the receivables turnover ratio for Colter? a. 6.7 times b. 10 times c. 5 times d. 8 times
4 . Lexter Company has a balance of $65,000 in Accounts Receivable and a $5,000 credit balance in Allowance for Doubtful Accounts. If a specific customer's account with a balance of $500 is written off as uncollectible, the cash (or net) realizable value of the accounts receivable will be a. $64,500. b. $60,000. c. $65,500. d. $60,500.
5. Martin Textile purchased machinery for $50,000 eight years ago. It was expected to have a useful life of ten years, no salvage value, and was depreciated using the straight-line method. At the end of its eighth year of use it was retired from service and given to a junk dealer. The entry to record the retirement includes a a. debit to Loss on Disposal for $10,000. b. debit to Machinery for $50,000. c. debit to Depreciation Expense for $10,000. d. credit to