ACC 291: Final Exam Study Guide - Key Concepts and Solutions
Final Exam Study Guide covering key accounting concepts and solutions.
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ACC 291: Final Exam Study Guide - Key Concepts and Solutions
ACC 291 Final Exam New
1. An aging of a company’s accounts receivable indicates that $4,500 are estimated to be
uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the
adjustment to record bad debts for the period will require a
a. debit to Bad Debt Expense for $3,300.
b. credit to Allowance for Doubtful Accounts for $4,500.
c. debit to Bad Debt Expense for $4,500.
d. debit to Allowance for Doubtful Accounts for $3,300.
2. The financial statements of the Melton Manufacturing Company reports net sales of
$300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and
end of year, respectively. What is the average collection period for accounts receivable in
days?
a. 36.5
b. 60.8
c. 96.1
d. 48.7
3. Stine Company purchased machinery with a list price of $64,000. They were given a 10%
discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine
estimates that the machinery will have a useful life of 10 years and a residual value of
$20,000. If Stine uses straight-line depreciation, annual depreciation will be
a. $4,100.
b. $4,072.
c. $6,100.
d. $3,760.
4. On January 1, a machine with a useful life of five years and a residual value of $40,000 was
purchased for $120,000. What is the depreciation expense for year 2 under the double-
declining-balance method of depreciation?
a. $28,800.
b. 23,040.
c. 48,000.
d. 38,400.
5. As a recent graduate of State University you’re aware that IFRS requires component
depreciation for plant assets. A friend has asked you to succinctly explain what component
depreciation means. Which of the following correctly describes component depreciation?
a. The method used to prorate annual depreciation on a time basis.
b. The method of depreciation recommended for an asset that is expected to be significantly
more productive in the first half of its useful life.
c. The method used to ensure that the depreciation rate remains constant from year to year.
d. The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately.
6. Given the following account balances at year end, compute the total intangible assets on the
balance sheet of Janssen Enterprises.
ACC 291 Final Exam New
1. An aging of a company’s accounts receivable indicates that $4,500 are estimated to be
uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the
adjustment to record bad debts for the period will require a
a. debit to Bad Debt Expense for $3,300.
b. credit to Allowance for Doubtful Accounts for $4,500.
c. debit to Bad Debt Expense for $4,500.
d. debit to Allowance for Doubtful Accounts for $3,300.
2. The financial statements of the Melton Manufacturing Company reports net sales of
$300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and
end of year, respectively. What is the average collection period for accounts receivable in
days?
a. 36.5
b. 60.8
c. 96.1
d. 48.7
3. Stine Company purchased machinery with a list price of $64,000. They were given a 10%
discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine
estimates that the machinery will have a useful life of 10 years and a residual value of
$20,000. If Stine uses straight-line depreciation, annual depreciation will be
a. $4,100.
b. $4,072.
c. $6,100.
d. $3,760.
4. On January 1, a machine with a useful life of five years and a residual value of $40,000 was
purchased for $120,000. What is the depreciation expense for year 2 under the double-
declining-balance method of depreciation?
a. $28,800.
b. 23,040.
c. 48,000.
d. 38,400.
5. As a recent graduate of State University you’re aware that IFRS requires component
depreciation for plant assets. A friend has asked you to succinctly explain what component
depreciation means. Which of the following correctly describes component depreciation?
a. The method used to prorate annual depreciation on a time basis.
b. The method of depreciation recommended for an asset that is expected to be significantly
more productive in the first half of its useful life.
c. The method used to ensure that the depreciation rate remains constant from year to year.
d. The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately.
6. Given the following account balances at year end, compute the total intangible assets on the
balance sheet of Janssen Enterprises.
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Document Details
University
University of Phoenix
Subject
Accounting