FINAL EXAM EXPENSE, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, OPERATING EXPENSE Feb 26, 2014 1129Words 47Views PAGE 1 OF 8 ACC/291 - Final Exam Study Guide 1. Ordinary repairs are expenses
FINAL EXAM EXPENSE, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, OPERATING EXPENSE Feb 26, 2014 1129Words 47Views PAGE 1 OF 8 ACC/291 - Final Exam Study Guide 1. Ordinary repairs are expenses
FINAL EXAM EXPENSE, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, OPERATING EXPENSE
Feb 26, 2014 1129Words 47Views
PAGE 1 OF 8
ACC/291 - Final Exam Study Guide
1. Ordinary repairs are expenses to keep a plant asset functioning properly:
Revenue expenditures
Explanation: Revenue expenditure is an ongoing cost to maintain the operational efficiency of an asset.
2. Percentage of receivables method:
Estimated uncollectible accounts = $15,000.
Allowance for Doubtful Accounts = $3,000
What is the amount of bad debts expense?
$12,000
Explanation: This entry simply requires you to subtract 3,000 from the 15,000 in estimated uncollectable accounts.
3. What is true about intangible assets?
They should be reported with a separate classification on the balance sheet
Explanation: Intangible assets should be organized into its own distinct group on the balance sheet.
4. Intangible assets are the rights and privileges from assets