1. The acquisition cost of a plant asset is equal to the asset’s implied cash price and:
Select one:
2. On January 1, Rio Company purchased a delivery truck for $10,000. The company estimates the truck will be driven 80,000 miles over its eight‑year useful life. The estimated salvage value is $2,000. The truck was driven 12,000 miles in its first year. Which method results in the largest depreciation expense for the first year?
Select one:
3. On the first day of the current year, Blakely Company sold equipment for less than its book value. Which of the following is part of the journal entry to record the sale?
Select one:
4. An exclusive right to operate or sell a specific brand of products in a given geographic area is called:
Select one:
5. Which of the following statements is false?
Select one:
6. Harley Company sold one of its worn out delivery trucks on December 31, 2016. The truck was purchased on January 1, 2013, for $50,000 and was depreciated on a straight‑line basis over a 5‑year life. There was no salvage value associated with the truck. If the truck was sold for $14,000, what was the amount of gain or loss recorded at the time of the sale?
Select one:
7. Which of the following payroll related taxes are not withheld from an employee’s earnings?
Select one:
8. Goldsteen Corporation obtained a $5,000 loan from a bank on April 1. If the bank charges eight percent interest annually, how much interest will be accrued at December 31?
Select one:
9. Wong Inc., sold merchandise on account for $1,840, which is subject to a ten percent excise tax and a five percent sales tax. What would the entry to record this sale include?
Select one:
10. Jansen Company sells a product for $400 per unit, which includes a 30‐day warranty against product defects. Experience indicates that four percent of the units sold will prove defective, requiring an average repair cost of $50 per unit. During the first month of business, product sales were $320,000, and 20 of the units sold were found to be defective and repaired during the month. What is the accrued liability for product warranties at month‐end?
Select one:
11. Which of the following is not considered to be a contingent liability?
Select one:
12. An example of off‐balance‐sheet financing is a(n):
Select one:
13.
