MBA 700 Questions With All Correct Answers

MBA 700 Questions With All Correct Answers

asset, balance sheet, customer correct answer -Accounts Receivable
-_____ on the ____
-Expect to receive from the ___

allowance for doubtful accounts correct answer -AFDA = ______

contra asset, balance sheet, reduce correct answer -Allowance for doubtful
accounts AFDA
- ____ to accounts receivable on the ___
- ____ accounts receivable

expense, income statement, bad debt correct answer -Bad debt expense
-___ account on the ____
- Record when make estimation of ___

property, plant, equipment correct answer -PPE ____ are TANGIBLE long
lived assets that are acquired for the purpose of generating revenue either
directly or indirectly

acquisition, future, original, expense, depreciation, disposal correct answer
-PPE
1. Account for the ___ cost
2. Determine the treatment of ___ expenditures on the ___ assets
3. ___ the asset's cost over time aka ____
4. Account for the ____ of the assets

original, use correct answer -Acquisition Cost
Recorded at ___ cost of the asset
+
All expenditures necessary to get the asset ready to ___

lump sum, PPE, relative correct answer -____ purchase price MUST BE
apportioned between the ___ assets required on the basis of their ____ market
values.

, debit, debit, credit correct answer -Assume that a LUMP SUM of $150K
cash is paid for land and a building, and that the land is appraised at 25% of
the total purchase.
Land is ___
Building is ___
Cash is ___

purchase, commission, legal correct answer -COSTS to acquire PPE
Land & Building
___ price
___ to real estate agent
___ fees

invoice, transportation, insurance correct answer -COST to acquire PPE
Equipment
___ cost
___
___ (during transportation)

assets, repair, parts, litigation correct answer -Capitalize or Expense
Improve the ____
*___
*Adding ___
*___ costs

expense, expense increased, income statement correct answer -For all
expenditures AFTER acquisition
___
If they BENEFIT only the CURRENT period, ____ on the ___

capitalize, asset increased, balance sheet correct answer -For all
expenditures AFTER acquisition
___
If they BENEFIT only the FUTURE period, ___ on the ___

depreciation correct answer -____ is to allocate the cost of the PPE into its
useful life
(EX., purchase a truck and intend to use for five years)