sfers to Irwin at leaseend. The lease requires five equal rental payments of $7,048 at the en
d of each year. The appropriate rate of interest is 11%, and the truck h
as a useful life of 5 years with no salvage value. Prepare Irwin’s 2012
journal entries.
ACC 422 Final Exam Guide 2
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1) Which of the following is NOT considered cash for financial rep
orting purposes?
2) What is the preferable presentation of accounts receivable fro
m officers, employees, or affiliated companies on a balance shee
t?
3) Which of the following is considered cash?
4) If a company employs the gross method of recording account
s receivable from customers, then sales discounts taken should b
e reported as
5) Assuming that the ideal measure of shortterm receivables in the balance sheet is the discounted value of t
he cash to be received in the future, failure to follow this practic
e usually does NOT make the balance sheet misleading because
6) Which of the following methods of determining annual bad d
ebt expense best achieves the matching concept?
7) The accountant for the Orion Sales Company is preparing the
income statement for 2007 and the balance sheet at December 3
1, 2007. Orion uses the periodic inventory system. The January
1, 2007 merchandise inventory balance will appear
8) Eller Co. received merchandise on consignment. As of Januar
y 31, Eller included the goods in inventory, but did NOT record
the transaction. The effect of this on its financial statements for J
anuary 31 would be
9. If the beginning inventory for 2006 is overstated, the effects o