ACCT 220 ACCT220 Quiz 3 Answers (UMUC)

ACCT 220 ACCT220 Quiz 3 Answers (UMUC)


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ACCT 220 ACCT/220 ACCT220 Quiz 3 (UMUC)

1 .Internal control is defined, in part, as a plan that safeguards

2. Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them

3.Control over cash disbursements is generally more effective when

4.An employee authorized to sign checks shouldĀ notĀ record

5..The relationship between current liabilities and current assets is

6. In preparing its bank reconciliation for the month of April 2014, Delano, Inc. has available the following information.

7. Which one of the following items isĀ notĀ considered a part of the cost of a truck purchased for business use?

8.The four subdivisions for plant assets are

9.A current liability is a debt that can reasonably be expected to be paid

10.Depreciation is the process of allocating the cost of a plant asset over its service life in

11 .The book value of an asset is equal to the

12.A company purchased factory equipment on April 1, 2014 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2014 is

13. The units-of-activity method is generallyĀ notĀ suitable for

14. A plant asset cost $288,000 and is estimated to have a $36,000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be

15. A factory machine was purchased for $375,000 on January 1, 2014. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2014. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2014 would be

Ā  Ā  Ā  Ā 16. A truck that cost $72,000 and on which $60,000 of accumulated depreciation has been recorded was disposed of for $18,000 cash. The entry to record this event would include a

17.The following totals for the month of April were taken from the payroll register of Asplend Company.

18.The entry made by Hoffman Granite on January 1 to record the proceeds and issuance of the note is

19.What is the adjusting entry required if Hoffman Granite Company prepares financial statements on June 30?

20.What entry will Hoffman Granite make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

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