accy_test_3_mc - ACCOUNTING 201 TEST 3 MULTIPLE CHOICE 1. A...

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ACCOUNTING 201 TEST 3 MULTIPLE CHOICE 1. A promissory note: d. a written promise to pay a specified amount of money at a certain date 2. Western Company sold $700,000 of its accounts receivable and was charged a 3% factoring fee. How should Western Company record this transaction in the journal? Cash $679,000 Factoring Fee Expense $21, 000 Accounts Receivable $700,000 3. The matching principle requires: d. the use of the allowance method of accounting for bad debts 4. Electron borrowed $75,000 cash from Tech Com by signing a promissory note c. debit to notes receivable for $75,000 5. Amount due on maturity date of a $60,000, 60 day, 8% note receivable? e. $6, 080 6. Failure by a promissory note’s maker to pay the amount due at maturity is known as? b. dishonoring a note 7. Plant assets are: e. tangible assets used in the operation of a business that have a useful life of more that one accounting period 8. The relevant factor(s) in computing depreciation include: e. cost, salvage value, useful life, depreciation method
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This note was uploaded on 04/10/2008 for the course ACCOUNTING 201 taught by Professor Mccaffrey during the Spring '08 term at Ole Miss.

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accy_test_3_mc - ACCOUNTING 201 TEST 3 MULTIPLE CHOICE 1. A...

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