Accounting NOCTI

What category does a company's patents and trademarks typically fall under in its financial statements?

• Assets
• Liabilities
• Equity
• Expenses

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

Which method ensures segregation of duties in controlling cash receipts?

• 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

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

• Bad debts
• Uncollectible revenue
• Allowance for doubtful accounts
• Write-offs

Which inventory costing method assumes that the most recent costs are the first to be allocated to cost of goods sold?

• FIFO (First-In, First-Out)
• LIFO (Last-In, First-Out)
• Weighted average cost
• Specific identification

What method spreads the cost of an asset evenly over its useful life?

• Straight-line depreciation
• Double-declining balance method
• Units-of-production depreciation
• Sum-of-the-years'-digits method

How are accounts payable typically classified on the balance sheet?

• Current liability
• Long-term liability
• Equity
• Revenue

What type of debt instrument is typically repayable in more than one year?

• Notes payable
• Bonds payable
• Accounts payable
• Accrued liabilities

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

• Equity increases
• Equity decreases
• Equity remains unchanged
• Equity becomes a liability

Which of the following represents an accrual adjustment?

• Recording cash received from customers
• Recognizing interest expense incurred but not yet paid
• Paying salaries to employees
• Purchasing equipment with cash