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BAM 110 BAM110 Pretest with Answers (CCU)

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  1. Capital expenditure is reported on the ______.
  2. On the bank’s accounting records, customers’ accounts are normally shown as a(n) ______.

    The cost of a product warranty should be included as an expense in the ______.

    When the contract rate of interest on bonds is higher than the market rate of interest, the bonds sell at ______.

    Which of the following is NOT reported as revenue on the income statement?

    A transaction in which a company sells its receivables and immediately receives cash for operating and other needs is called

    In a period of rising prices, the effect of selecting the FIFO rather than the LIFO method of inventory valuation results in

    A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed

    Which element of internal control observes employees’ behavior and the accounting system for indicators of control problems?

    Deferred revenue is initially recorded as ______.

    An increase in Stockholders’ Equity from revenues earned will also result in an increase in ______.

    Which of the following is TRUE of a direct materials cost?

    When the market rate of interest on bonds is equal to the contract rate, the bonds will sell at:

    Unearned rent, representing rent for the next six months’ occupancy, would be reported on the landlord’s balance sheet as a(n) ______.

    The ability of a business to earn a reasonable amount of income is referred to as the factor of ______.

    _____ occurs due to obsolescence that causes an asset to no longer provide services for which it was intended.

    Which of the following is TRUE of job order cost systems?

    Which of the following manufacturing costs is an indirect cost of producing a product?

    Which of the following statements is TRUE about liabilities?

    The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as ______.

    The amount of the promissory note plus the interest earned on the due date is called the ______.

    Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis?

    Which of the following is TRUE of a capital expenditures budget?

    Which of the following are the two main types of cost accounting systems for manufacturing operations?

    Accrued expenses are ordinarily reported on the balance sheet as ______.

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