Reference no: EM132713943

Problem 1: When assets that have been sold and accounted for by the instalment method subsequently repossessed and returned to inventory, they should be recorded on books at

a. Book value

b. Selling price

c. Fair market value plus reconditioning cost

d. Net realizable value less reconditioning cos

Problem 2: Under the installment sales method, the gross profit rate based on sale may be computed a

a. Deferred gross profit divided by adjusted sales for trade-in merchandise

b. Deferred gross profit divided by installment sales

c. Deferred gross profit by installment account receivable

d. All of the above

Problem 3: It refers to the process of winding up the affairs of the corporation by settling its corporate debts and distributing the remainder to the stockholders

a. Corporate Liquidation

b. Corporate Dissolution

c. Corporate Rehabilitation

d. Corporate Termination

Problem 4: The accounting equation for a trustee in bankruptcy liquidation is:

a. Assets equals liabilities plus owner's equity

b. Assets equal accountability

c. Assets equal liabilities minus estate deficit

d. Assets minus liabilities equals accountability