ACC100: Unit 4 Milestone 4 With Answers You passed this Milestone
1 Unearned revenue is a(n) __________ account and carries a normal __________ balance.
liability; credit revenue; credit equity; debit asset; debit 2 Which of the following internal controls has Jim implemented at his company if he hires an outside auditing firm to review the company's financial records?
Monitoring processes Information and communication systems Control environment Risk assessment CONCEPT 3 LONG TERM ASSET ASSET: ASSEMBLY EQUIPMENT
COST
$15,000
ACCUMULATED DEPRECIATION
$2,500
PREPAID INSURANCE
$500
MAINTENANCE COSTS
$1,500
BOOK VALUE
______
Based on the information shown here, which of the following is the book value of the assembly equipment? $13,500 $12,500 $12,000 $10,500 4 Which of the assets below CANNOT depreciate? Two cabins Two chainsaws Two all-terrain vehicles Two acres of land 5 Which of the following examples can be classified as an accounts receivable?
The building management company agreed that The Animal Shop could pay September's rent in October. Due to an extra shipment, the Animal Shop had a special this week on kitty litter. The Animal Shop decided a goldfish could stay for a week and they'd be paid when it was picked up. The Animal Shop signed up for a new credit card to receive 0% financing for the first six months. 6 Marian received an extra principal payment on the loan her business made to another company. What activity does this exemplify? Financing activity No activity to record on the statement of cash flows Operating activity
Investing activity
7
Using the information shown here, which of the following is the asset turnover ratio?
2.00 0.09 1.67 0.14
8 As Ned reviewed the credit accounts, he noticed that a customer who recently filed bankruptcy had an accounts receivable balance of $4,890. Ned instructed the accountant to make a journal entry to write off the customer's entire balance. Which of the following journal entries would be listed as debit?
Allowance for Bad Debts Bad Debt Expense Cash Accounts Receivable 9 Which asset below is a current asset?
Warehouse Fleet of company cars Printer ink