acc363questions - O RLANDO BARBA ACC/363 PART I. Multiple...

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ORLANDO BARBA ACC/363 PART I. Multiple Choice (5 points) ____ 1. The cost of intangible assets should be a. amortized over the assets' estimated useful life, or 20 years, whichever is shorter. b. amortized over a period not exceeding 5 years. c. amortized over the assets' estimated useful life. d. charged to an expense account at acquisition. ____ 2. In a period of rising prices, the inventory method that results in the lowest income tax payment is a. LIFO. b. FIFO. c. average cost. d. specific identification. ____ 3. If ending inventory is understated, net income and assets will be Net Income Assets a. Understated Understated b. Overstated Overstated c. Understated Unaffected d. None of the above. ____ 4. Allowance for Doubtful Accounts is reported in the a. balance sheet as a contra asset. b. balance sheet as a contra liability account. c. income statement under other expenses and losses. d. income statement under other revenues and gains. ____ 5. Lawford Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000. Depreciation expense was $100,000. Proceeds from the sale of the used equipment were a. $210,000. b. $250,000. c. $280,000. d. $320,000. ____ 6. The inventory methods that result in the most current costs in the income statement and balance sheet are Income Statement Balance Sheet a. FIFO FIFO b. LIFO FIFO c. LIFO LIFO d. FIFO LIFO ____ 7. One of the two constraints in accounting is
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a. comparability. b. materiality. c. reliability. d. relevance. ____ 8. The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the a. economic entity assumption. b.
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This note was uploaded on 03/29/2010 for the course ACCT 349 349 taught by Professor Fortune during the Spring '09 term at University of Phoenix.

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acc363questions - O RLANDO BARBA ACC/363 PART I. Multiple...

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