ACCT 701- Final Practice Exam.docx - Started on State...

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Started onFriday, October 19, 2018, 5:34 PMStateFinishedCompleted onFriday, October 19, 2018, 6:32 PMTime taken58 mins 6 secsQuestion 1CorrectMark 10.00 out of 10.00Flag questionQuestion textWhen services are performed on account (on credit), what is the accounting effect for the company that provides the services?Select one:a. Accounts payable increases and retained earnings decreases.b. Both cash and retained earnings decrease.c. Both accounts receivable and retained earnings increase. Correct. The performance of services on account increases both accounts receivable and retained earnings.d. Both cash and retained earnings increase.FeedbackThe correct answer is: Both accounts receivable and retained earnings increase.
CorrectMarks for this submission: 10.00/10.00.Question 2CorrectMark 10.00 out of 10.00Flag questionQuestion text
Which of the following entities is charged with the development and promulgation of financial accounting standards in the United States?
CorrectMarks for this submission: 10.00/10.00.Question 3CorrectMark 10.00 out of 10.00Flag questionQuestion textA business purchased merchandise for $15,000 on account; terms are 2/10, n/30. If $2,600 of the merchandise was returned and the remaining amount due was paid withinthe discount period, the purchase discount would be:
FeedbackYour answer is correct.
CorrectMarks for this submission: 10.00/10.00.Question 4CorrectMark 10.00 out of 10.00Flag questionQuestion textYou have purchased 100 units of product X, which has a list price of $13.60 per unit. Because you are a wholesaler, you are granted a trade discount of 19.3%. The cash discount terms are 2/6, n/45. How much will you pay in total for product X assuming that you pay for the product within 4 days of purchase?
CorrectMarks for this submission: 10.00/10.00.Question 5CorrectMark 10.00 out of 10.00Flag questionQuestion text
Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 3.5% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is $243,000, and the Allowance for Doubtful Accounts has a credit balance of $4,300 before adjustments at year-end. The Bad Debt Expense for 2016 will be:Select one:a. $8,505b. $5,423c. $4,300d. $4,205 (243,000*3.5%)-4,300=4,205FeedbackYour answer is correct.The correct answer is: $4,205
CorrectMarks for this submission: 10.00/10.00.

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