Accounting 201
Exam 3 (Chapters 7-9) Hints
- 25 Multiple Choice (25 *
2 =50 points)
- Multiple choice
questions (all except four) will be heavy on concepts [and light on
calculations (i.e., amount of interest paid and expense)]
- Methods of estimating
and recording bad debts expense
- Recording accounts and notes receivable; calculation of
interest expense and maturity amount
- Know the definition of plant assets (property, plant
and equipment) and factors used in computing depreciation
- Allocation of lump-sum purchases of plant assets
- Know other classifications of Long-term assets
discussed in Chapter; Also how we report loss in value of these
assets
- Definition and examples of current liabilities
- Calculation
of interest expense to be accrued at year end
- Components
of payroll calculation (gross, withholdings, net pay, etc.)
- Different
types of payroll taxes assessed on employees and employers
- Problems
- 1. (20
Points) Determine current liabilities, long-term liabilities, or ‘not
a liability’ from a list of account titles
- 2. (18 Points) Information
on three plant assets will be given and you will have to calculate the
amount of depreciation expense for one year on each of the items
- 3.
(12 Points) Journal entry to record bad debts expense under the
allowance method; naturally, you will need to be able to calculate the
amount of the expense in the process
Study hard and you will be appropriately
rewarded. Good luck!!!