When a company goes bankrupt and all its assets are sold, which group of
people should be paid before the other?
Ward Co. estimates its uncollectible accounts expense to be 2% of credit
sales. Wards credit sales for 20x1 were $1,000,000. During 20x1, Ward wrote
off $18,000 of uncollectible accounts. Wards allowance for uncollectible
Marsh Company had 150 units of product A on hand at January 1, 20x1,
costing $21 each. Purchases of product A during the month of January were
At January 1, 20x1, Jamin Co. had a credit balance of $260,000 in its
allowance for uncollectible accounts. Based on past experience, 2% of
Jamins credit sales have been uncollectible. During 20x1, Jamin wrote off
Which of the following statements about the sales returns and allowances
account is correct?
Sales returns and allowances account can be treated as a selling
Sales returns and allowances account would decrease g
During January 20x1, ABC Company, which maintains a perpetual inventory
system, recorded the following information pertaining to its inventory:
How would the proceeds received from the advance sale of nonrefundable
tickets for a theatrical performance be reported in the sellers financial
statements before the performance?
Revenue for the entire proceeds.
A company issued and sold new common stock to investors. Which of the
following is the correct description of the effect of this transaction on
Paid-in capital increased.
Paid-in capital decreased.
The historical cost principle states that:
Assets should be recorded at cost and adjusted when the fair value
Activities of an entity be kept separate and distinct from its owner.
Assets should be recorded at
On January 1, 20x1, Ms. Ross contributed $15,000 in cash to establish XYZ
On the January 1, 20x1 balance sheet, this $15,000 should be recorded under
Cash and Bank loans payable.
Bank loans payable and Paid-in capi
tinian defeat in the war. and the subsequent ousting of the
this was an expensive mistake.
Junta showed that
Stereotyping is stati ' experiences into given explana-
tory categories. Effective generalization is dynamic because experi
On January 2, 20x1, Union Co. purchased a machine for $264,000 and
depreciated it by the straight-line method using an estimated useful life of 8
years with no salvage value. On January 2, 20x4, Union determined that the
Know Yourself and Others: the Cultural Perspective
The values shared by members of a social grou
p shape, and are at least to some extent shape
d by, collective beliefs, behavior, and artifacts
Culture is believed to influence an
Professor of International Management at Soka
Bachelor in economics (Brussels University)
PhD in applied economics (Brussels University)
In a global world, businesses become cultu
Introduction to Islamic
Associate Prof. Dr. Fakhrul Anwar Zainol
Universiti Sultan Zainal Abidin
Islam means The Surrender, that is, man surrendering to
Gods will and purpose.
Islam is an Arabic word th
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Three sampe "day at work" scenarios for the
United States, japan, and Sweden
US scetloTl' Jerry's doy ot work
Jerry Davis an American endneer working for a major automotive m?nufaeturer was checking his e-mail in the on
Which of the following statements is true about the LIFO method ?
Ending inventory is calculated based on the cost of the last goods
Ending inventory is calculated based on the cost of the first goods
A company decided to change its inventory valuation method from FIFO to
LIFO in a period of rising prices.
What was the result of the change on ending inventory and net income in the
year of the change?
Which of the following is an intangible asset?
a, b, dbuildinglandfactory equipment1
property, plant, and equipment
In which of the following situations is the units-of-production method of
depreciation most appropriate?
An assets service potential declines with use.
An assets service potential declines with the passage of time.
How would total stockholders equity be affected by the declaration of each
of the following?
Stock dividend:No effect Stock split:Increase
Stock dividend:Decrease Stock split:Decrease
Stock dividend:Decrease Stock sp
A company declared a cash dividend on its common stock on December 15,
20x1, payable on January 12, 20x2. How would this dividend affect
stockholders equity on the following dates?
December 15;20x1:Decrease December 31;20x
Bonds payable issued with scheduled maturities at various dates are called
Serial bonds:No Term bonds:Yes
Serial bonds:No Term bonds:No
Serial bonds:Yes Term bonds:No
Serial bonds:Yes Term bonds:Yes
Each of the following statements is correct, except
Companies pay money to buy back treasury stock.
Treasury stock is debited at the price paid to reacquire the shares.
The acquisition of treasury stock reduces stock
When a company issues bonds with the stated interest rate of 6% whereas
the market interest rate is 9%, the bonds would usually be
Issued at par
Issued at a discount
Issued at a premium
Issued at a loss
On January 1, 20x1 ABC Company sells equipment for $20,000 cash. The
original cost was $60,000, the estimated salvage value was $5,000, and the
expected useful life was 5 years. On December 31, 20x0 the accumulated
Current liabilities are obligations that are or will be due within a normal
operating cycle or within a year if more than one cycle is completed each
From the following, identify the account which does not belong to cur
On December 31, 20x1, Woods Company owed ACE Bank $10,000, of which
$5,000 is due July 1, 20x2, and 20x3. How should this liability be reported ?
$10,000 as a current liability.
$5,000 as a current liability and $5,000
ABC Company bought new maintenance equipment for $500,000. The
equipment had an expected useful life of 5 years and salvage value of
$50,000. Depreciation for the second year of the assets life using the sumof-the- years-digi