In: Accounting
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.
3.
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.
4.
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.
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