ACC 201 Exam 3 Chapters 7&8

Sellers allow customers to use credit cards to pay for products and services for all of the following reasons except:

Which of the following is not true regarding a credit card expense?

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

The person who signs a note receivable and promises to pay the principal and interest is the:

A promissory note:

Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?

A finance company or bank that purchases and takes ownership of another company's accounts receivable is called a:

Factoring receivables is beneficial to a seller for all of the following reasons except:

The account receivable turnover measures:

The accounts receivable turnover is calculated by:

The matching principle, as applied to bad debts, requires:

The materiality constraint, as applied to bad debts:

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in:

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the:

Honoring a note receivable indicates that the maker has:

Failure by a promissory notes' maker to pay the amount due at maturity is known as:

Amounts owed by customers from credit sales for which payment is required in periodic amounts over an extended time period are referred to as:

Plant assets are defined as:

The relevant factors in computing depreciation do not include:

Salvage value is:

Depreciation:

The useful life of a plant asset is:

A benefit of using an accelerated depreciation method is that:

The modified accelerated cost recovery system (MACRS):

The straight-line depreciation method and the double-declining-balance depreciation method:

Land improvements are:

Which of the following are not classified as plant assets?

The total cost of an asset less its accumulated depreciation is called:

The depreciation method that allocates a varying amount of a plant asset's cost to expense for each period depending on its usage is called:

The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate to the asset's beginning-of-period book value is called:

The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(an):

Extraordinary repairs:

Which of the following is an example of an extraordinary repair?

Ordinary repairs meet all of the following criteria except:

Betterments are:

Which of the following is an example of a betterment?

Holding a copyright:

Amortization is:

Intangible assets do not include:

Owning a patent:

The specific meaning of goodwill in accounting is: