Accounting II Exam Review Ch 14-22

Accounts receivable that cannot be collected are called uncollectible accounts. What classification is the account "uncollectible accounts"?

• Asset

• Liability

• Revenue

• Expense

Cancelling the balance of a customer account because the customer does not pay is called ____

• writing off a customer

• writing off an account

• writing off the balance

• a writing off

A written and signed promise to pay a sum of money at a specified time is called ___

• promised payment

• a note receivable

• a promissory note

• a note payable

Notes Payable earn interest

• True

• False

Interest Income increases on what side?

• Debit

• Credit

A Trial Balance is only correct at the end of the month after ___

• you do the Worksheet Trial Balance section

• the adjusting entries are complete

• the adjusting entries are removed

What is the classification of Merchandise Inventory?

• Asset

• Liability

• Operating Revenue

• Operating Expense

When plant assets lose value it is called ___

• depreciation loss

• the end of useful life

• depreciation expense

• depreciation

Recording an equal amount of depreciation expense for a plant asset in each year of its useful life is called the ___

• straight-line method of depreciation

• accumulated depreciation

• book value of a plant asset

• depreciation

Different tax rates are applied to different levels of net income. Each tax rate and taxable income amount on one line of a tax table is called a ___

• marginal tax rate

• tax bracket

• income tax

• net income