Question 7 of 40

Mark

Which of the following accounts is debited if depreciation is a production cost?

a. Finished Goods
b. Raw Materials
c. COGS

d. Work in Process Inventory

Question 8 of 40
Mark

On its December 31 Balance Sheet in Year 1, XYZ Company reports Accounts Receivable of $60,000 and an All
$1,800,000, collections on account total $1,680,000, and write-offs total $9,600. After aging its Accounts Receiv
December 31 of Year 2 will be uncollectible. During year 2, a customer's account for $2,400 is written off as unc
Statement and Balance Sheet?
a. No effect on income, decrease assets by $2,400
b. Decrease income by $2,400, decrease assets by $2,400
c. No effect on either Income Statement or Balance Sheet
d. None of the above

Which of the following costs would NOT be included in the cost of machinery?
a. Invoice price
b. Installation costs
c. Testing of machinery prior to its intended use
d. All of the above would be included.

Question 22 of 40
Mark

XYZ Company has credit sales of $4,000,000 during Year 1. At December 31 Year 1, the balance in Accounts Re
credit sales. What effect will the company's December 31 adjusting entry have on the company's Income State
a. Decrease income by $40,000, no effect on balance sheet
b. Decrease income by $40,000, decrease assets by $40,000
c. No effect on either income statement or balance sheet
d. None of the above

Question 24 of 40

acctshiring@gmail.com

hillfort@eim.ae

8. Question ID: CMA.P2.A.SI.02.05