Accounting NOCTI

Front

What category do a company's patents and trademarks typically fall under in its financial statements? Options: Assets, Liabilities, Equity, Expenses

Back

Assets

Front

Which of the following represents revenue for a manufacturing company? Interest income from investments, Sales of goods to customers, Salary payments to employees, Insurance premiums paid

Back

Sales of goods to customers

Front

Which method ensures segregation of duties in controlling cash receipts? Options: Reconciling bank statements monthly, Allowing the same person to handle cash receipts and disbursements, Using a petty cash fund for small expenditures, Having different employees approve and record cash transactions

Back

Having different employees approve and record cash transactions

Front

What is the term for accounts receivable that a company determines are unlikely to be collected?

Back

Bad debts

Front

Which inventory costing method assumes that the most recent costs are the first to be allocated to cost of goods sold? Options: FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Weighted average cost, Specific identification

Back

LIFO (Last-In, First-Out)

Front

What method spreads the cost of an asset evenly over its useful life? Options: Straight-line depreciation, Double-declining balance method, Units-of-production depreciation, Sum-of-the-years'-digits method

Back

Straight-line depreciation

Front

How are accounts payable typically classified on the balance sheet? Options: Current liability, Long-term liability, Equity, Revenue

Back

Current liability

Front

What type of debt instrument is typically repayable in more than one year? Options: Notes payable, Bonds payable, Accounts payable, Accrued liabilities

Back

Bonds payable

Front

When a company issues additional shares of common stock, what happens to equity?

Back

Equity increases

Front

Which of the following represents an accrual adjustment? Recognizing interest expense incurred but not yet paid, Recording cash received from customers, Paying salaries to employees, Purchasing equipment with cash

Back

Recognizing interest expense incurred but not yet paid