Question 1 When a company receives an interest-bearing note receivable, it willcredit Notes Receivable for the face value of the note.debit Notes Receivable for the face value of the note.credit Notes

Accounting Quiz due in 8-9 hours

Question 1 When a company receives an interest-bearing note receivable, it will

credit Notes Receivable for the face value of the note.

debit Notes Receivable for the face value of the note.

credit Notes Receivable for the maturity value of the note.

debit Notes Receivable for the maturity value of the note.

Question 2 When an asset is sold, a gain occurs when the

sale price exceeds the depreciable cost of the asset sold.

book value exceeds the sale price of the asset sold.

sale price exceeds the original cost of the asset sold.

sale price exceeds the book value of the asset sold.

Question 3 Notes or accounts receivables that result from sales transactions are often called

merchandise receivables.

trade receivables.

non-trade receivables.

sales receivables.

Question 4 Which of the following is not a suggested procedure to establish internal control over cash disbursements?

The bank statement is reconciled monthly.

Blank checks are stored with limited access.

Different individuals approve and make the payments.

Anyone can sign the checks.

Question 5 Each of the following is a feature of internal control except

recording of all transactions.

separation of duties.

bonding of employees.

an extensive marketing plan.

Question 6 A system of internal control

is premised on the concept of absolute assurance.

invariably will have costs exceeding benefits.

can be rendered ineffective by employee collusion.

is infallible.

Question 7 Which one of the following items would not be considered cash?

Postdated checks.

Currency.

Money orders.

Coins.

Question 8 Entries are made to the Petty Cash account when

replenishing the fund.

recording shortages in the fund.

making payments out of the fund.

establishing the fund.

Question 9 The depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is

none of these.

sum-of-year's-digits.

units-of-activity.

straight-line.

Question 10 A plant asset with a cost of $360,000 and accumulated depreciation of $342,000 is sold for $42,000. What is the amount of the gain or loss on disposal of the plant asset?

$42,000 gain.

$24,000 gain.

$24,000 loss.