acct_220_final_exam - Section 2 Multiple-Choice Questions(25 points Question 7(1 point After the bank reconciliation is prepared the entry to record

acct_220_final_exam - Section 2 Multiple-Choice...

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Section 2: Multiple-Choice Questions (25 points) Question 7 (1 point) After the bank reconciliation is prepared, the entry to record bank service charges would have a credit to _______________. Question 7 options: Bank Service Charge Expense Cash Petty Cash Cash Short and Over None of the above Save Question 8 (1 point) Malloy Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2015. The balance in Accounts Receivable is $200,000, and the allowance account has a $3,000 credit balance before adjustment at year end. The uncollectible accounts expense for 2015 will be _______________. Question 8 options: $7,000 $10,000
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$13,000 $9,850 None of the above Save Question 9 (1 point) Malloy Company issued its own $10,000, 90-day, non-interest-bearing note to a bank. The only payment Malloy will ever make to the bank will be for $10,000 at the maturity date of the loan as the bank discounts the note at 10 percent. The proceeds to Malloy are _______________. Question 9 options: $10,000 $9,000 $9,750 $10,250 None of the above Save Question 10 (1 point) Malloy company uses a calendar year. On 2015 July 1, Malloy Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Malloy uses the double-declining-depreciation method, the depreciation expense for 2015 is _______________. Question 10 options:
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$88,000 $72,000 $36,000 $44,000 $40,000 Save Question 11 (1 point) The result of recording a capital expenditure as a revenue expenditure is an _______________. Question 11 options: overstatement of current year's expense understatement of current year's expense understatement of subsequent year's net income overstatement of current year's net income None of the above Save Question 12 (1 point)
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Cole Inc., a new company, purchases a two-year insurance policy for $12,000. Six months later, the correct balance in the prepaid insurance account would be _______________.
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