Study guide - ACC\/291 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course

Study guide - ACC/291 Final Examination Study Guide This...

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ACC/291 Final Examination Study GuideThis study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this study guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week. Week One: Principle AssetsObjective: Prepare journal entries to account for transactions related to accounts receivable and bad debt using both percentage of sales and the percentage of receivables methods. 1.The method of accounting for uncollectible accounts that results in a better matching of expenses with revenues is the a.aging accounts receivable methodb.direct write-off methodc.percentage of receivables methodd.percentage of sales method 2.Using the percentages of receivables method for recording bad debts expense, estimated uncollectible accounts are $25,000. If the balance of the Allowance for Doubtful Accounts is $8,000 debit before adjustment, what is the amount of bad debts expense for that period? Objective: Distinguish between tangible and intangible assets. 3.Copyrights are granted by the federal government 4.The cost of a patent should be amortized over Objective: Identify the entries associated with acquisition, disposal, and sales of plant assets. 5.Mattox Company is building a new plant that will take 3 years to construct. The construction will be financed in part by funds borrowed during the construction period. There are significant architect fees, excavation fees, and building permit fees. Which of the following statements is true? a.Excavation fees are capitalized but building permit fees are not.b. Architect fees are capitalized but building permit fees are not. c. Interest is capitalized during the construction as part of the cost of the building.
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d.The capitalized cost is equal to the contract price to build the plant less any interest on borrowed funds.
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