Acct. Quiz 3

Acct. Quiz 3 - account? (A) Net income is unchanged (C) Net...

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Accounting 284 Dr. Clem Spring 2008 – 15 points Quiz 3 Name: Michael Nelson ______________________________________________________________ University ID: 522170649 ____________________________________________________________ Row # ____7 __________ Class Time(circle): 11 am 12:40 pm Choose the best answer . Indicate your answer in the space provided D 1.Which of the following is a characteristic of accounting information which ensures that the information can be compared across time? (A) relevance (C) comparability (B) reliability (D) consistency A 2.Jordan Electronics had credit sales during the year totaling $5,000,000 and an ending accounts receivable balance of $45,000. Assuming Jordan has a historical bad debt loss rate of 3%, what entry will Jordan need to make at the end of the year to record bad debt expense? (A) Bad Debt Expense +150,000 Allowance for Doubtful Accounts +$150,000 (B) Bad Debt Expense +150,000 Allowance for Doubtful Accounts -$150,000 (C) Bad Debt Expense +1,350 Allowance for Doubtful Accounts +$1,350 (D) Bad Debt Expense +1,350 Allowance for Doubtful Accounts -$1,350 D 3.Which of the following statements is correct regarding the effect of writing off an uncollectible
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Unformatted text preview: account? (A) Net income is unchanged (C) Net income is reduced (B) Total assets are unchanged (D) Both A and B are correct A 4.Samuel Corp. identified the following items in its October 2006 bank reconciliation: Bank statement balance $44,500 Outstanding checks. . $ 2,700 NSF check $ 400 Service charges $ 200 Deposits in Transit. .. $ 800 If the companys book balance before the reconciliation was $43,200, what is the adjusted cash balance after taking all of the above items into account? (A) $42,600 (B) $43,100 (C) $44,000 (D) $46,400 A 5.Pence Inc. sold 10,000 shares of its $1 par value common stock for $30 per share. Which of the following will NOT result from this transaction? A) Cash will increase by $10,000 B) Total stockholders equity will increase by $300,000 C) Common stock will increase by $10,000 D) Additional capital paid in excess of par (PIC) will increase by $290,000...
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This test prep was uploaded on 03/26/2008 for the course ACCT 284 taught by Professor Clem during the Spring '08 term at Iowa State.

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