ACC 422 Final Exam Guide 2
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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 .
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ACC 422 Final Exam Guide 2
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1 ) Which of the following is NOT considered cash for financial report ing purposes ?
2 ) What is the preferable presentation of accounts receivable from offi cers , employees , or affiliated companies on a balance sheet ?
3 ) Which of the following is considered cash ?
4 ) If a company employs the gross method of recording accounts recei vable from customers , then sales discounts taken should be reported a s 5 ) Assuming that the ideal measure of shortterm receivables in the balance sheet is the discounted value of the cas h to be received in the future , failure to follow this practice usually do es NOT make the balance sheet misleading because 6 ) Which of the following methods of determining annual bad debt ex pense best achieves the matching concept ? 7 ) The accountant for the Orion Sales Company is preparing the inco me statement for 2007 and the balance sheet at December 31 , 2007 . O rion uses the periodic inventory system . The January 1 , 2007 merchan dise inventory balance will appear 8 ) Eller Co . received merchandise on consignment . As of January 31 , Eller included the goods in inventory , but did NOT record the transact ion . The effect of this on its financial statements for January 31 would be 9 . If the beginning inventory for 2006 is overstated , the effects of this error on cost of goods sold for 2006 , net income for 2006 , and assets a t December 31 , 2007 , respectively , are