UCF ACG 2021 - Principles of Accounting Exam 3 with all
Correct & 100% Verified Answers |Guaranteed to Pass
Internal Controls ✔Correct Answer-a company's plan to
1) Safegaurd the company's assets and
2) improve the accuracy and reliability of accounting information
Separation of duties ✔Correct Answer-authorizing transactions, recording transactions, and
maintaining control of related assets should be separated among different employees
First in, First out method (FIFO) ✔Correct Answer-inventory costing method that assumes the
first units purchased (the first in) are the first ones sold (the first out)
Last in, Last out Method (LIFO) ✔Correct Answer-Inventory costing method that assumes the
last units purchased (the last in) are the first ones sold (the last out)
Multiple-step income statement ✔Correct Answer-An income statement that reports multiple
levels of income (or profitability)
Residual (Salvage) Value ✔Correct Answer-the amount the company expects to receive from
selling the assets at the end of its service life
Straight line depreciation calculation ✔Correct Answer-allocated an equal amount of
depreciation to each year of the assets service life
(Assets cost - Residual Value) / Service life
Double Declining Balance Depreciation Calculation ✔Correct Answer-a accelerated method
that allocates a higher depreciation in the earlier years of the assets life and lower depreciation
in later years
Depreciation Rate ( 2 / Service Life) x Beginning Book Value
Activity Based Depreciation Calculation ✔Correct Answer-allocate an asset's cost based on its
use
Depreciation Rate Per Hour = ( Asset Cost - Residual Value) / Total Hours Equipment is expected
to be used
Intangible Asset ✔Correct Answer-long-term assets that lack physical substance, and whose
existence is often based on a legal contract
Net Accounts Receivable ✔Correct Answer-The calculated difference between total accounts
receivable and the allowance of uncollectible accounts
Correct & 100% Verified Answers |Guaranteed to Pass
Internal Controls ✔Correct Answer-a company's plan to
1) Safegaurd the company's assets and
2) improve the accuracy and reliability of accounting information
Separation of duties ✔Correct Answer-authorizing transactions, recording transactions, and
maintaining control of related assets should be separated among different employees
First in, First out method (FIFO) ✔Correct Answer-inventory costing method that assumes the
first units purchased (the first in) are the first ones sold (the first out)
Last in, Last out Method (LIFO) ✔Correct Answer-Inventory costing method that assumes the
last units purchased (the last in) are the first ones sold (the last out)
Multiple-step income statement ✔Correct Answer-An income statement that reports multiple
levels of income (or profitability)
Residual (Salvage) Value ✔Correct Answer-the amount the company expects to receive from
selling the assets at the end of its service life
Straight line depreciation calculation ✔Correct Answer-allocated an equal amount of
depreciation to each year of the assets service life
(Assets cost - Residual Value) / Service life
Double Declining Balance Depreciation Calculation ✔Correct Answer-a accelerated method
that allocates a higher depreciation in the earlier years of the assets life and lower depreciation
in later years
Depreciation Rate ( 2 / Service Life) x Beginning Book Value
Activity Based Depreciation Calculation ✔Correct Answer-allocate an asset's cost based on its
use
Depreciation Rate Per Hour = ( Asset Cost - Residual Value) / Total Hours Equipment is expected
to be used
Intangible Asset ✔Correct Answer-long-term assets that lack physical substance, and whose
existence is often based on a legal contract
Net Accounts Receivable ✔Correct Answer-The calculated difference between total accounts
receivable and the allowance of uncollectible accounts
