XYZ Company had sales of $585,000 during Year 1, $260,000 of which were on account. The account balances in Accounts Receivable and in Allowance for Uncollectible Accounts on December 31 of Year 1 were $78,000 and $10,400 respectively. Past experience indicates that 5 percent of all credit sales will not be collected. An aging of accounts indicated that $19,500 of the receivable balance would not be collected. How much should XYZ Company debit to the Bad Debt Expense Account?

XYZ Company reports Accounts Receivable of $60,000 and an Allowance for Uncollectible Accounts of $6,000 on its December 31 Year 1 Balance Sheet. During Year 2, credit sales total $1,800,000, collections on account total $1,680,000, and write-offs total $9,600. After aging its Accounts Receivable, XYZ Company estimates that 10 percent of its Accounts Receivable at December 31 of Year 2 will be uncollectible. The company also estimates that its bad debts will be 2 percent of credit sales. What balance would XYZ Company report in Allowance for Uncollectible Accounts on its December 31 Year 2 Balance Sheet?

A Florida hotel chain's properties located on the Emerald Coast are destroyed when the area is devastated by an earthquake. What type of activity is this?  

What is the proper accounting for all research and development costs when incurred?

XYZ Company purchases a piece of equipment on January 1, 2007 at a cost of $100,000. The equipment has a five-year useful life and can be sold for $10,000 at the end of five years. If XYZ Company uses the 200% percent declining balance depreciation method, how much depreciation would be recorded in the second year? 

Which of the following is a characteristic of grouping assets into one of seven life classes?

XYZ Company sells a residential lot to Mr. A for $140,000. The cost assigned to the lot by XYZ Company is $56,000. The contract calls for five annual payments of $28,000. Each payment is received on time at the end of each of the five years. If XYZ Company recognizes income under the cost-recovery-first method, how much income would they recognize in Year 2?

The sum-of-the-years digits method is an example of a/an ________________.

Which of the following statements about selecting the best depreciation method for tax purposes is incorrect?

Late in Year 1, XYZ Company signs a contract to construct a bridge for the Florida Dept. of Transportation. The contract price is $42,000,000. The costs during the 3-year construction period are as follows:
Year 2: $10,000,000
Year 3: $15,000,000
Year 4: $5,000,000
If XYZ Company recognizes income under the percentage-of-completion method, how much income would they recognize on the bridge contract in Year 4?

In which of the following methods may salvage be ignored when calculating depreciation?

On its December 31 Balance Sheet in Year 1, XYZ Company reports Accounts Receivable of $60,000 and an Allowance for Uncollectible Accounts of $6,000. During Year 2, credit sales total $1,800,000, collections on account total $1,680,000, and write-offs total $9,600. After aging its Accounts Receivable, XYZ Company estimates that 10 percent of its Accounts Receivable at December 31 of Year 2 will be uncollectible.
Given the above data, what amount would XYZ Company report as Bad Debt Expense in its Year 2 Income Statement?

Which of the following methods allows all operating expenses, related with oil and gas exploration, to be capitalized irrespective of whether the exploration is successful or not?

In the indirect method, which of the following is included in the cash flow from investing activities?

Which of the following accounts is debited if depreciation is a production cost?

XYZ Company purchases a machine with a cost of $20,000, a salvage value of $2,000, and life of five years. If the company uses the sum-of-the-years digits method, what would the depreciation charge be for the first year?

If a reasonable estimate of the amount of cash to be received can be made, when should revenue be recognized?

Which of the following groups assets into one of seven classes for tax depreciation?

Which of the following basic patterns would be appropriate for allocation of land?

Which of the following costs is capitalized for a self-constructed asset?

When a company uses its accounts receivable as collateral for a loan, the transaction is known as a/an _____________________.

Which of the following factors is an example of a functional cause of depreciation?

Assets that can provide future benefits without having physical form are called ___________.

Small adjustments to and  replacement of plant assets that have little or no effect on useful life are called _______________.

In financial statements, what is the proper handling of the Allowance for Uncollectible Accounts?

In which of the following depreciation methods is the estimate of useful life NOT required?

The legal right to future benefits of an invention is referred to as a/an _______________.

Which of the following events reduces total assets?

XYZ Company generates five new products in 2008. The interest capitalized for these items is referred to as __________________.

Which of the following is the same as an outright sale?

When the ______________ method is used to estimate uncollectible accounts, the balance in the Allowance for Uncollectible Accounts is adjusted to reflect the desired ending balance.

XYZ Company buys a building on April 1, 2008 for $100,000. The building has a physical life of 50 years, but XYZ Company anticipates using the building for 50 years. At the end of 50 years, the building will have no disposal value, but at the end of 30 years it will have a disposal value of $5,000. If the company uses the straight line method, how much depreciation would be recorded on December 31, 2008?

When all else is equal, analysts ____________________.

Which of the following costs would NOT be included in the cost of machinery?

The proceeds gained upon disposition of an asset at the end of its useful life are referred to as the asset's _______________.

Late in Year 1, XYZ Company signs a contract to construct a bridge for the Florida Dept. of Transportation. The contract price is $42,000,000. The costs during the 3-year construction period are as follows:
Year 2: $10,000,000
Year 3: $15,000,000
Year 4: $5,000,000
If XYZ Company recognizes income under the percentage-of-completion method, how much income would they recognize on the bridge contract in Year 2?

When managers choose estimates that lead to higher current income, analysts refer to those earnings as ________________.

Which of the following is a type of intangible asset that appears on the balance sheet only when one company is acquired by another?

When using the indirect method to determine operating cash flows in a cash flow statement, which of the following would be added to net income?

The term _______________ refers to "cost less accumulated" depreciation.