Practice Exam ch 10-11

Practice Exam ch 10-11 - Review Assessment: 2291 Practice...

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Review Assessment: 2291 Practice Final Exam Question 1 0 out of 0 points Machinery was purchased on January 1, 2007 for $51,000. The machinery has an estimated life of 5 years and an estimated salvage value of $6,000. Sum-of-the- years'-digits depreciation for 2008 would be Correct Answer: Question 2 0 out of 0 points A building with an appraisal value of $137,000 is made available at an offer price of $142,000. The purchaser acquires the property for $30,000 in cash, a 90-day note payable for $40,000, and a mortgage amounting to $60,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is Correct Answer: Question 3 0 out of 0 points On June 8, Acme Co. issued an $80,000, 6%, 120-day note payable to Still Co. Assume that the fiscal year of Acme Co. ends June 30. What is the amount of interest expense recognized by Acme in the current fiscal year?
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Question 3 0 out of 0 points Correct Answer: Question 4 0 out of 0 points Which of the following should be included in the acquisition cost of a piece of equipment? Correct Answer: Question 5 0 out of 0 points A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of Correct Answer: Question 6 0 out of 0 points The Brock Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000. In recording this transaction, Brock Company should record
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Question 6 0 out of 0 points Correct Answer: Question 7 0 out of 0 points An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46 federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. What is the net amount to be paid the employee? Correct Answer: Question 8 0 out of 0 points The Buy-It-For- Yourself Company had the following assets and liabilities as of December 31, 2006: Cash Accounts receivable Inventory Equipment LIABILITIES
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Question 8 0 out of 0 points Current portion of long-term debt Accounts payable Long-term debt Determine the quick ration for the end of the year (rounded to one decimal point). Correct Answer: Question 9 0 out of 0 points An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment
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This note was uploaded on 06/20/2011 for the course ACT 2291 taught by Professor Leedaniel during the Summer '09 term at Troy.

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Practice Exam ch 10-11 - Review Assessment: 2291 Practice...

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