Question : 41) On May 1, Counts, Inc. has a balance of : 1253164

 

 

41) On May 1, Counts, Inc. has a balance of $1,000 in office supplies. During May, the company buys $500 more of the office supplies. On May 31, the company counts the supplies and finds $200 of supplies remaining. What will the company report on its May 31 balance sheet?

A) Supplies expense of $500

B) Supplies of $1,300

C) Supplies of $200

D) Supplies expense of $1,500

 

42) On May 1, Counts, Inc. has a balance of $1,000 in office supplies. During May, the company buys $500 more of the office supplies. On May 31, the company counts the supplies and finds $200 of supplies remaining. What will the company report on its income statement for the month of May?

A) Supplies expense of $1,300

B) Supplies of $500

C) Supplies of $1,500

D) Supplies expense of $500

43) On May 1, Counts, Inc. has a balance of $1,000 in office supplies. During May, the company pays $500 for more supplies. On May 31, the company counts the supplies and finds $200 of supplies remaining. What will the company report on its statement of cash flows for the month of May?

A) Supplies expense of $500

B) Supplies of $500

C) Cash paid for supplies of $(500)

D) Accounts payable of $500

 

44) If a company buys an asset that will be used for more than one accounting period, an expense associated with the asset will be recognized ________.

A) when the asset is purchased

B) in the periods during which the asset is used to generate revenue

C) when the asset is sold

D) in the accounting periods during which the company has a profit

 

45) What accounting principle justifies depreciating certain long-term assets?

A) the revenue principle

B) the depreciation principle

C) the cost-based principle

D) the matching principle

 

46) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. Calculate the annual amount of depreciation expense.

A) $48,000

B) $44,000

C) $20,000

D) $88,000

47) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. Calculate the book value of the equipment that will be reported on the balance sheet dated December 31, 2012.

A) $44,000

B) $88,000

C) $172,000

D) $152,000

 

48) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. Calculate the amount of accumulated depreciation at December 31, 2012.

A) $48,000

B) $88,000

C) $172,000

D) $152,000

 

49) A contra-asset is ________.

A) an amount that is deducted from an asset

B) an amount that is added to an asset

C) an amount that revalues an asset to fair market value as of the balance sheet date

D) an amount that is classified as shareholders’ equity

 

50) On January 1, 2011, Beyers Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. Calculate the annual amount of depreciation expense.

A) $20,500

B) $20,000

C) $500

D) $200,000

 

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