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