A company receives a 10%, 90-day note for $1,500

4 points   

QUESTION 3

1.      Depreciation:

4 points   

QUESTION 4

1.      When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. After 4 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:

4 points   

QUESTION 5

1.      Dell had net sales of $35,404 million. Gross sales total $37,576.  Its average total assets for the period were $14,502 million. Dell’s total asset turnover equals:

4 points   

QUESTION 6

1.      A company purchased a rope braiding machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 750,000 units of climbing rope over its useful life. In the first year, 105,000 units were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year?

4 points   

QUESTION 7

1.      A copyright:

4 points   

QUESTION 8

1.      Extraordinary repairs:

4 points   

QUESTION 9

1.       Huffington Company purchased and installed a machine on January 1, 2008, at a total cost of $95,000.  Straight-line depreciation is taken each year for three years assuming a five year life and no salvage value.  The machine is sold for $30,500 cash on July 1, 2011.  What is the gain or loss on sale of machinery?

4 points   

QUESTION 10

1.      A company had $7,000,000 in net income for the year. Its net sales were $11,200,000 for the same period. Calculate its profit margin.

4 points   

QUESTION 11

1.      A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company later returned $275 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is:

4 points   

QUESTION 12

1.      Herald Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Herald Company’s net sales equals:

4 points   

QUESTION 13

1.      Which of the following statements concerning inventory systems are true?

4 points   

QUESTION 14

1.      On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses the periodic inventory system. Alberts pays the invoice on October 8, and takes the appropriate discount. The journal entry that Robertson makes on October 8 is: