ACC 100: Unit 4 Milestone 4 (SUMMER 2020). with Answers. 100% Score.

ACC100: Unit 4 Milestone 4 With Answers You passed this Milestone 1 Unearned revenue is a(n) __________ account and carries a normal __________ balance. • liability; credit • revenue; cr edit • equity; debit • asset; debit 2 Which of the following internal controls has Jim implemented at his company if he hires an outside auditing firm to review the company's financial records? • Monitoring processes • Information and communication systems • Control environment • Risk assessment CONCEPT 3 LONG TERM ASSET ASSET: ASSEMBLY EQUIPMENT COST $15,000 ACCUMULATED DEPRECIATION $2,500 PREPAID INSURANCE $500 MAINTENANCE COSTS $1,500 BOOK VALUE ______ Based on the information shown here, which of the following is the book value of the assembly equipment? • $13,500 • $12,500 • $12,000 • $10,500 4 Which of the assets below CANNOT depreciate? • Two cabins • Two chainsaws • Two all-terrain vehicles • Two acres of land 5 Which of the following examples can be classified as an accounts receivable? • The building management company agreed that The Animal Shop could pay September's rent in October. • Due to an extra shipment, the Animal Shop had a special this week on kitty litter. • The Animal Shop decided a goldfish could stay for a week and they'd be paid when it was picked up. • The Animal Shop signed up for a new credit card to receive 0% financing for the first six months. 6 Marian received an extra principal payment on the loan her business made to another company. What activity does this exemplify? • Financing activity • No activity to record on the statement of cash flows • Operating activity • Investing activity 7 Using the information shown here, which of the following is the asset turnover ratio? • 2.00 • 0.09 • 1.67 • 0.14 8 As Ned reviewed the credit accounts, he noticed that a customer who recently filed bankruptcy had an accounts receivable balance of $4,890. Ned instructed the accountant to make a journal entry to write off the customer's entire balance. Which of the following journal entries would be listed as debit? • Allowance for Bad Debts • Bad Debt Expense • Cash • Accounts Receivable 9 Which asset below is a current asset? • Warehouse • Fleet of company cars • Printer ink • Computer 10 If Joel took out a three-month loan at 6.5% for remodeling of his store that he estimates will cost $14,500, which of the following is the interest total for the remodeling? • $235.63 $3,770.00 $2,356.25 $231.86 11 Examine the partial balance sheet vertical analysis below. ASSETS Cash $97,500 15% Accounts Receivable $552,500 85% Total Assets $650,000 100% LIABILITIES Accounts Payable $78,000 12% Notes Payable _______ ____ Total Liabilities 50% EQUITY Total Equity $325,000 50% Based on the information shown, what is the correct amount and percentage of notes payable? • $247,000; 38% • $572,000; 88% • $325,000; 50% • $403,000; 62% 12 What is the current ratio formula? • Current liabilities/ Current assets • Current assets / Current liabilities • Total assets / Total liabilities • Assets / Liabilities 13 Which of the amounts below is the correct total uncollectible amount, given the above aging schedule? • $260 $200 $170 • $340 14 Bart paid $150,000 for a piece of equipment for his business. Bart's income statement puts the straight line depreciation rate at 20%, and the equipment is expected to have a residual value of $1,000 at the end of its useful life, which is expected to be five years. Using double declining balance depreciation, what is the value of the piece of equipment at the end of year one? • $90,000 • $120,000 • $60,000 • $100,000 15 Given the information shown here, which of the following is the current ratio? • 0.64 • 0.50 • 0.80 0.62 16 __________________ includes policies, procedures and mindset of top management. A tangible representation can be found in the employee handbook or annual statement. • Risk assessment • Monitoring process • Control environment • Control activity 17 Considering the information in the general journal shown here, which of the following is the correct percent of credit sales that are uncollectible? • 7% • 9% • 5% • 2% 18 Which of the following is NOT an example of personal property? • Blank canvases • Pieces of artwork • An art gallery • Paint and paintbrushes 19 Which of the following is NOT a true statement regarding residual value? • Residual value is found below the referenced asset with a credit balance. • The asset's owner determines what the residual value will be. • It is an estimate of an asset's book value when fully depreciated. • An asset cannot be depreciated beyond its residual value. 20 Don's Landscaping Service purchased a backhoe for $12,000. It has a useful life of five years and a residual value of $1,750. Based on this information, what is the straight-line depreciation for one year for this asset? • $2,050 • $10,250 • $2,400 • $1,025 21 Based on this information, which of the following is the correct rate of return on sales? • 1.26 • 1.40 • 0.88 • 1.13 22 Based on the above aging schedule, what amount would be recorded in accounts receivable at 31-60 days? • $15,000 • $75,000 • $150,000 • $120,000 23 Which of the following allowances for bad debt should the company enter into their financials for an Accounts Receivable account with a balance of $1,500,000 if the company estimates that 3.3% of receivables will be uncollectible? • $49,500 • $37,500 • $90,000 • $60,000