Answer Happy

69 70 The balance sheet category "intangible assets includes a. Equipment, land, and buildings b. Investments, receivables, and customer lists c. Goodwill, inventory, and furnishings d. Patents, trademarks, and franchises Which of the following is true about natural resources? a. The process of cost allocation is known as depreciation b. The cost is usually allocated using a units of activity method. c. The acquisition and development costs are always expensed as incurred. d. None of the above When a machine is sold for less than its net book value a. One of the debits is to Loss on Sale of Machinery. b. There is a gain on the sale of the machinery c. The machinery sale was a "bad deal for the company. d. None of the above. A company purchased land for $5,000,000. The land had an estimated 4,000,000 tons of ore. After 10 years of mining, it is expected that the land will be worth $2,000,000. Depletion expense per ton of ore extracted is 71 72 b. 9.75 c. S.SO d. $1.20 a. $1.25 73. Bad debt expense is estimated to be 2 percent of net credit sales. Net credit sales for the period were $576,000. The Allowance for Doubtful Accounts account has a credit balance of $80,000. The entry to record the bad debt expense is a. debit Allowance for Doubtful Accounts, $9.920, credit Bad Debt Expense. $9.920. b. debit Bad Debt Expense, $9.920, credit Allowance for Doubtful Accounts, $9.920. c. debit Allowance for Doubtful Accounts, $11,520, credit Bad Debt Expense, S11,520. d. debit Bad Debt Expense, $11,520, credit Allowance for Doubtful Accounts, $11.520. 74. a Using the percentage of receivables method, the estimated allowance for doubtful accounts is $30,000. If the balance in Allowance for Doubtful Accounts is a $5,000 debit before adjustment, what is the amount of the adjustment to the allowance? a) $30,000 credit b) $35,000 credit c) $25,000 credit d) $5,000 credit 75. Compute the interest earned and determine which of the following does not equal the others. Assume a 360-day year. a $500 for 90 days at 12% b. $600 for 120 days at 6% c. $500 for 120 days at 9% d. $600 for 60 days at 15%