Question

1)Concerning the various methods for accounting for uncollectible receivables, the percentage of credit sales method is an example of the allowance method.

True

False

2)The cost of goods sold model for a manufacturer is:

Beginning Finished Goods Inventory

+

Purchases (net)

=

Cost of Goods Available for Sale

-

Ending Finished Goods Inventory

=

Cost of Goods Sold

True

False

3)Trade receivables are amounts due from customers and non-trade receivables are amounts due from all other parties.

True

False

4)Net purchases is computed as follows:

Net Purchases

=

Purchases

+

Freight-out

-

Purchase Discounts Taken

-

Purchase Returns and Allowances

True

False

5)Purchased goodwill is the difference between the acquisition price of an acquired company and the fair value of its identifiable net assets.

True

False

6)A copyright is granted by the federal government giving the owner exclusive rights to sell, publish, and control the artistic product for the life of the creator.

True

False

7)Development is the planned search for new knowledge with the hope that such knowledge will be useful in developing a new product or process.

True

False

Answer 1

Q1. Answer is True
Q2. Answer is False
Explanation:
For manufacturer, the cost of goods manufactured shall be taken instead of Purchases.
Q3. Answer is True.
Q4. Answer is false.
Explanation:
Freight in cost is added in purchases cost not Freight out.
Q5. Answer is True.
Q6. Answer is True.
Q7. Answer is True.