1. Braxton Company purchased printing equipment at a cost of $24,000. The monthly depreciation on the...

1. Braxton Company purchased printing equipment at a cost of $24,000. The monthly depreciation on the equipment is $400. As of December 31, 2011, the balance in Accumulated Depreciation is $9,600. The book value of the equipment reported on the December 31, 2011 balance sheet will be

a. $24,000

b. $23,600

c. $14,400

d. $9,600

2. On October 1, 2011, Greer Company signed a $10,000 six-month note payable that bears interest at a rate of 6%. Since no interest has been previously accrued on this note, the total interest to be accrued on this note at December 31, 2011, is

a. $50.

b. $150.

c. $300.

d. $600.

Which of the following is false?

a. Current assets are listed in the order of magnitude.

b. Obligations expected to be paid after one year are classified as long-term liabilities.

c. Intangible assets are non-current resources that do not have physical substance.

d. Property, plant, and equipment are tangible resources of a relatively permanent nature that are used in the business and not intended for sale.

Debt securities sold to investors and due to be repaid at a particular date some years in the future are called:

a. cash.

b. revenue.

c. inventory.

d. accounts receivable.

Solutions

Expert Solution

1. (C) $14400 ($24000-$9600)

2. (C) $ 300 (assume 6% interest rate is for 6 month , so 10000 x 6% (1/2)

3. (A) Current assets are listed in the order of magnitude

4. (D) account receivable

ekkarill92 answered 1 year ago

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