Question :
11) For the past twenty years, Ace Electronics has had : 1253082
11) For the past twenty years, Ace Electronics has had a policy of expensing all assets that cost less than $50, even if they are expected to last for more than a year, because it is simpler and easier than depreciating low-cost assets over their useful lives. This year Ace Electronics decided that because of inflation it would begin expensing all assets that cost less than $100. This accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
12) For the past twenty years, Bijou Company has had a policy of expensing all assets that cost less than $50, even if they are expected to last for more than a year, because it is simpler and easier than depreciating low-cost assets over their useful lives. This year, Bijou bought a new computerized accounting system and decided to depreciate all assets over their useful lives, even low-cost assets like wastebaskets and pencil sharpeners. This accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
13) This year Ace Electronics tried calculating its bad debts expense two different ways. Using a percentage of credit sales, bad debts expense would be $1,500. Based on an aging of accounts receivable, however, bad debts expense would be only $1,200. If Ace decides to report $1,500 of bad debts expense, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
14) This year Ace Electronics tried calculating its bad debts expense two different ways. Using a percentage of credit sales, bad debts expense would be $1,500. Based on an aging of accounts receivable, however, bad debts expense would be only $1,200. If Ace decides to report $1,200 of bad debts expense, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
15) This year Beta Business tried calculating its bad debts expense two different ways. Using a percentage of credit sales, bad debts expense would be $2,500. Based on an aging of accounts receivable, however, bad debts expense would be $2,750. If Beta Business decides to report $2,500 of bad debts expense, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
16) This year Beta Business tried calculating its bad debts expense two different ways. Using a percentage of credit sales, bad debts expense would be $2,500. Based on an aging of accounts receivable, however, bad debts expense would be $2,750. If Beta Business decides to report $2,750 of bad debts expense, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
17) Tim’s Tams has been using LIFO to value its inventory because it gives a higher cost of goods sold, lower income, and lower taxes. This year Tim’s Tams has decided to make a permanent switch to FIFO, even though it will then have to pay more taxes on its higher reported income. This accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
18) Alpha, Inc. bought land and a new warehouse for $100,000. Because Alpha needs to separate the cost of the land (which will not be depreciated) from the cost of the building (which will be depreciated), Alpha got two independent appraisals. The first appraiser said the land was worth $10,000. The second appraiser said the land was worth $15,000. If Alpha records the land at $10,000 and the building at $90,000, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
19) Alpha, Inc. bought land and a new warehouse for $100,000. Because Alpha needs to separate the cost of the land (which will not be depreciated) from the cost of the building (which will be depreciated), Alpha got two independent appraisals. The first appraiser said the land was worth $10,000. The second appraiser said the land was worth $15,000. If Alpha records the land at $15,000 and the building at $85,000, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
20) Tim’s Tams donated 100 baseball caps to the local homeless shelter. The company will record the donation as an operating expense. The caps cost Tim’s Tams $2.00 each and the company usually sells them for $8.50. If Tim’s Tams reports a charity expense of $200, this accounting choice would be considered ________.
A) conservative
B) fundamental
C) basic
D) aggressive
