Review Test Submission 3.docx - Review Test Submission Test...

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Review Test Submission: Test Three Content User BRUCE COOPERJR Course 201620-Prin of Financial Accounting-22811 Test Test Three Started 4/4/16 11:18 AM Submitted 4/4/16 2:05 PM Status Completed Attempt Score 84 out of 100 points Time Elapsed 2 hours, 47 minutes out of 3 hours Results Displayed All Answers, Submitted Answers, Correct Answers, Feedback Question 1 2 out of 2 points Which of the following is true of a contingent liability? Selected Answer: It is a potential liability that depends on a future event. Answers: It is a liability resulting from a lawsuit settled in court. It is an actual liability that is difficult to estimate. It is an actual liability that depends on a past event. It is a potential liability that depends on a future event. Question 2 2 out of 2 points Available-for-sale (AFS) investments are reported as ________ if the business expects to sell them within one year. Selected Answer: current assets Answers: long-term assets either current assets or long-term assets equity current assets Question 3
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2 out of 2 points Which of the following is paid by the employer only? Selected Answer: Federal unemployment tax Answers: Employee income tax Medicare tax OASDI tax Federal unemployment tax Question 4 0 out of 2 points Companies invest in trading investments with the intent of ________. Selected Answer: holding the investment till maturity Answers: generating a profit on a quick sale gaining the controlling rights of the investee increasing the amount of long-term assets holding the investment till maturity Question 5 2 out of 2 points Revenue collected but not yet earned is recorded as ________. Selected Answer: Unearned Revenue Answers: Uncollected Revenue Unearned Revenue Accrued Revenue Service Revenue Question 6 2 out of 2 points A coal mine costs $1,000,000 and is estimated to hold 50,000 tons of coal. There is no residual value. 3,000 tons are extracted and sold during the first year of operations. Calculate depletion per unit.
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Selected Answer: $20 Answers: $10 $15 $5 $20 Response Feedback: Depletion per unit = (Cost - Residual value) ÷ Estimated total units Depletion per unit = ($1,000,000 - 0) ÷ 50,000 tons = $20 per ton Question 7 2 out of 2 points Which of the following is the correct accounting treatment for a patent? Selected Answer: A patent must be capitalized and amortized over 20 years or less. Answers: A patent must be depreciated or impaired, but not amortized. A patent must be capitalized and amortized over 20 years or less. A patent must be shown as a current asset on the balance sheet. A patent must be expensed, not capitalized, in the period in which it is purchased. Question 8 2 out of 2 points The cost of an asset is $1,000,000 and its residual value is $100,000. Estimated useful life of the asset is four years. Calculate depreciation for the first year using the double-declining-balance method of depreciation.
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