Debits vs. Credits Multiple Choice

1

Frodo Corp. purchased a used 2nd breakfast maker from Bilbo Corp., which Bilbo had fully depreciated. Payment was $2,000. Frodo believes the maker will last four years. Frodo uses straight-line depreciation, and there is no residual value.
The balance of Accumulated Depreciation—2nd Breakfast Maker after the first year of use by Frodo will be:

1

On November 1, 2015, AquinasCo. signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. AquinasCo. should report interest payable at December 31, 2015, in the amount of:

1

All of the following costs would be found in a company’s accounting records except:

1

Which of the following would most likely be included as part of overhead in the production of picnic tables?

1

If a company overstated ending inventory in year 1 and stated ending inventory correctly in year 2, which statement is correct?

1

An increase in the Prepaid Insurance account of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

Round 3 MC

Debits vs. Credits Multiple Choice

On November 1, 2015, AquinasCo. signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. AquinasCo. should report interest payable at December 31, 2015, in the amount of:

All of the following costs would be found in a company’s accounting records except:

Which of the following would most likely be included as part of overhead in the production of picnic tables?

If a company overstated ending inventory in year 1 and stated ending inventory correctly in year 2, which statement is correct?

An increase in the Prepaid Insurance account of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as: