1 of 99
Term
A company, using the allowance method of
recording credit losses, wrote off a customer's
account in the amount of $1,000. Later, the customer paid the
account. The company reinstated the account by means of a
journal entry and then
recorded the collection. What is the result of these procedures?
, Has no effect on total assets Increase in total assets by $1,000
Decrease assets and decrease
Cost to acquire a patent
stockholders' equity
Don't know?
2 of 99
Term
Brighton Company, Inc. began the period with $10,000 in
inventory. Brighton also purchased an additional $25,000 of
inventory and returned $5,000 for a full credit. A physical count
of the inventory at year-end revealed an inventory on hand of
$10,000. What was Brighton's cost of goods sold (CGS) for the
period?
$25,000 $10,000
$50,000 $20,000
Don't know?
3 of 99
Term
,The term goods flow refers to the association of costs with
their assumed flow in the operation of a business.
LIFO False
Matching True
Don't know?
4 of 99
Term
Which of the following would be considered a capital
expenditure?
Cost to paint the office building Cost to acquire a patent
Interest expense Lifo reserve.
Don't know?
5 of 99
, Term
Research and development costs should be:
Total assets will be unchanged. Period costs
Expensed if unsuccessful,
Expensed in the period
capitalized if
incurred
successful
Don't know?
6 of 99
Term
When a gain contingency is probable and the amount of gain is
reasonably estimable, the gain should be
Disclosed, but not recognized
Offset against stockholders' equity
in the income statement
Disclosed, but not reported as a Decrease assets and decrease
liability stockholders' equity
Term
A company, using the allowance method of
recording credit losses, wrote off a customer's
account in the amount of $1,000. Later, the customer paid the
account. The company reinstated the account by means of a
journal entry and then
recorded the collection. What is the result of these procedures?
, Has no effect on total assets Increase in total assets by $1,000
Decrease assets and decrease
Cost to acquire a patent
stockholders' equity
Don't know?
2 of 99
Term
Brighton Company, Inc. began the period with $10,000 in
inventory. Brighton also purchased an additional $25,000 of
inventory and returned $5,000 for a full credit. A physical count
of the inventory at year-end revealed an inventory on hand of
$10,000. What was Brighton's cost of goods sold (CGS) for the
period?
$25,000 $10,000
$50,000 $20,000
Don't know?
3 of 99
Term
,The term goods flow refers to the association of costs with
their assumed flow in the operation of a business.
LIFO False
Matching True
Don't know?
4 of 99
Term
Which of the following would be considered a capital
expenditure?
Cost to paint the office building Cost to acquire a patent
Interest expense Lifo reserve.
Don't know?
5 of 99
, Term
Research and development costs should be:
Total assets will be unchanged. Period costs
Expensed if unsuccessful,
Expensed in the period
capitalized if
incurred
successful
Don't know?
6 of 99
Term
When a gain contingency is probable and the amount of gain is
reasonably estimable, the gain should be
Disclosed, but not recognized
Offset against stockholders' equity
in the income statement
Disclosed, but not reported as a Decrease assets and decrease
liability stockholders' equity
