Exam (elaborations)
UNIT 3 Accounting Exam Questions and Answers
- Course
- Accounting
- Institution
- Accounting
UNIT 3 Accounting Exam Questions and Answers
[Show more]
Content preview
UNIT 3 Accounting Exam Questions andAnswers
Accumulated Depreciation - Answer-A depreciation method that produces higher
depreciation expense in the early years than the straight-line approach.
Allowance for doubtful accounts - Answer-Accounting for bad debts involves estimating
uncollectible accounts at the end of each period.
Allowance method for accounts receivable - Answer-Under this method, a company
debits every bad credit write-off to the allowance account and not to bad debt expense.
Amortization(essentially depreciation? with the exception of Goodwill) - Answer-The
process of allocating to expense the cost of an intangible
Asset turnover ratio - Answer-Net Sales /Average Total Assets(set as times)
Callable bonds - Answer-Bonds that the issuing company can redeem (buy back) at a
stated dollar amount prior to maturity.
Convertible bonds - Answer-Bonds that can be converted into common stock at the
bondholder's option.
Declining balance method of depreciation - Answer-A depreciation method that applies
a constant rate to the declining book value of the asset and produces a decreasing
annual depreciation expense over the asset's useful life.
Depreciation (T/F from Exercise 9-4) - Answer-The process of allocating to expense the
cost of a plant asset over its useful life in a rational and systematic manner.
Matches of expenses with revenue, Cost allocation, Applies to: Building, equipment,
and Land IMPROVEMENTS
Depreciable cost - Answer-The cost of a plant asset less its salvage value.
Direct write-off method for accounts receivable - - Answer-A method of accounting for
bad debts that involves charging receivable balances to Bad Debt Expense at the time
receivables from a particular company are determined to be uncollectible.
Discount on bonds payable - Answer-The difference between the face value of a bond
and its selling price when a bond is sold for less than its face value.
Franchises - Answer-A contractual arrangement under which the Owner grants the
individual the right to sell certain products, to perform specific services or to use certain
trademarks or trade names, usually within a designated geographical area.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now