final exam - Review of attempt 1 Started on Wednesday,...

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Review of attempt 1 Started on Wednesday, December 15, 2010, 08:27 PM Completed on Wednesday, December 15, 2010, 11:43 PM Time taken 3 hours 16 mins Grade 94 out of a maximum of 100 ( 94 %) Question 1 Marks: 2 Notes receivable are generally reported as noncurrent assets. Answer: True False Correct Marks for this submission: 2/2. Question 2 Marks: 2 Certificates of deposit are usually classified as cash on the balance sheet. Answer: True False Correct Marks for this submission: 2/2. Question 3 Marks: 2 Which of the following items should be included in accounts receivable reported on the balance sheet? Choose one answer. a. Notes receivable. b. Interest receivable. c. Allowance for doubtful accounts. d. Advances to related parties and officers. Correct Marks for this submission: 2/2. Question 4 Marks: 2 For receivables sold with recourse, the seller guarantees payment to the purchaser if the debtor fails to pay. Answer: True False Correct Marks for this submission: 2/2.
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Question 5 Marks: 2 At the beginning of 2009, Gannon Company received a three-year zero-interest-bearing $1,000 trade note. The market rate for equivalent notes was 8% at that time. Gannon reported this note as a $1,000 trade note receivable on its 2009 year-end statement of financial position and $1,000 as sales revenue for 2009. What effect did this accounting for the note have on Gannon's net earnings for 2009, 2010, 2011, and its retained earnings at the end of 2011, respectively? Choose one answer. a. Overstate, overstate, understate, zero b. Overstate, understate, understate, understate c. Overstate, overstate, overstate, overstate d. None of these Overstate, understate, understate, zero. Correct Marks for this submission: 2/2. Question 6 Marks: 2 All of the following may be included under the heading of "cash" except Choose one answer. a. currency. b. money market funds. c. checking account balance. d. savings account balance. Correct Marks for this submission: 2/2. Question 7 Marks: 2 When buying receivables with recourse, the purchaser assumes the risk of collectibility and absorbs any credit loss. Answer: True False Incorrect Marks for this submission: 0/2. Question 8 Marks: 2 Bank overdrafts are always offset against the cash account in the balance sheet. Answer: True False Correct Marks for this submission: 2/2. Question 9 Marks: 2 Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the LIFO method, what is the ending inventory?
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Choose one answer. a. $20,073.
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This note was uploaded on 04/14/2011 for the course ACCT 3202 taught by Professor Kenmichael during the Spring '11 term at University of Minnesota Duluth.

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final exam - Review of attempt 1 Started on Wednesday,...

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