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17. Laramie Inc. paid $800,000 for a basket purchase that included land, a building, und office furniture. An appraiser estimated the following market values: L and =$126,000 : Building = \$594,000; Office Fumiture =$180,000. Based on this information, the eost allocated to the land and recorded to Laramie's balance sheet for the land is: Note: do not round intermediate calculations - if necessary A. $94,360 B. $139,210 C. $126,000 D. $112,000 18. What term is used to describe the situation where thete is a permancont decline in the value of an intangible asset? Amortization B. Impairment C. Depiction D. Depreciation 19. Good Company paid cash to purchase a mineral reserve on a lasge parcel of land. Which of the following accurately reflects how this event would impact Good's financial A. Option A B. Option B C. Option C b. Option D 20. Which of the following is considered an accelerated depreciation method? A Double-Declining-Balance B. Units-Of-Production C. Straight-Line D. Both A&B are accelerated depreciation methods 13. Which of the following is used to identify the process of expense recognition for plant, property, and equipment? A Depreciation B. Depletion C. Impairment D. Amortization 14. At the end of the current accounting period, Ringgold Company recorded a depreciation of $15,000 on its equipment. The effect of the entry to record depreciation expense to Ringgold's balance sheet is to: A. decrease assets and increase liabilities B. decrease stockholder's equity and decrease assets C. decrease assets and increase stockholder's equity D. decrease stockholder's equity and increase liabilities 15. Which of the following would be classified as a long-term, operational asset on the balance sheet? A. Notes receivable B. Trademark C. Accounts receivable D. Inventory 16. Dinkins Company purchased a truck that cost $93,000. The company expected to drive the truck 100,000 miles over its 5-year useful lifc. The truck had an estimated salvage value of $14,500. If the truck is driven 35,500 miles in the current accounting period, what would be the amount of depreciation expense for the year using the units-ofproduction method? Note: do not round your intermediate calculations - if necessary A. $27,868 (B) $33,015 C. $15,700 D. $37,200 21. Duke Company's unadjusted bank balance at March 31"I of Year 1 is $2,300. The bank reconciliation revealed outstanding checks amounting to $500 and deposits in transit of $400. Based on this information, Duke's true cash balance on its balance sheet is: \begin{tabular}{ll} A. & $2,000 \\ B. & $2,700 \\ C. & $2,200 \\ D. & $2,400 \end{tabular} 22. The most favorable audit opinion from an external auditor that a company can receive is a(n): A. qualified opinion B. disclaimer of opinion C. adverse opinion D. unqualified opinion 23. Owen Company's unadjusted book balance at June 30th is $9,700. The company's bank statement reveals a bank service charge of $45. Two credit memos are included in the bank statement: one for $900 from a collection by the bank and one for $50 from interest earned by Owen. Based on this information, Owen's true cash balance on its balance sheet is: A. $10,550 B. $9,700 C. $10,695 D. $10,605 24. Which of the following is not a motive for the embezzlement of cash by employees? A American dollars the common unit of measurement worldwide B. Small quantities of high denomination can represent significant value C. Ownership of cash is difficult to prove or disprove D. Cash has universal appeal 25. Which of the following is not considered a common control activity? A. Bonding of employees B. Use of prenumbered documents C. Requiring employees to take vacations D. Ensuring a duplication of duties among employees

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