I have most of them done but would like to have these ones double checked... Please Help!!!
2. The balance sheet format that lists assets above liabilities is the _______ form.
A. alphabetical
B. liquidity
C. account
D. report
I said B
13. Nick Company reports the following inventory information:
Inventory Number Inventory Quantity Unit Cost Unit Market Value
What is the total value of the merchandise under LCM (lower-of-cost or market)?
APD 4837 440 $51.29 $51.48
CPZ 2837 290 $76.59 $77.02
IXL 9291 310 $42.34 $42.47
EOD 1717 200 $22.19 $21.75
DKS 3088 180 $31.22 $31.17
A. $67,961.70
B. $67,864.70
C. $68,210.30
D. $68,113.30
I said C
21. ABC Corporation pays an invoice for $350 in time to take a 3% discount. The journal entry to record
The payment of this invoice is
A. debit Accounts Payable $350; credit Inventory $10.50, credit Cash $339.50.
B. debit Accounts Payable $340; debit Inventory $10; credit Cash $350.
C. debit Accounts Payable $350; credit Cash $350.
D. debit Accounts Payable $340; credit Cash $340.
I said A
24. Net sales times the historical gross profit percentage yields the estimated
A. beginning inventory.
B. ending inventory.
C. cost of goods sold.
D. Gross profit.
I said A
32. Besides using an overstatement of earnings to inflate a company's stock price, overstating earnings may
Also be used to
A. deflates the amount of taxes the corporation pays.
B. ensures larger bonuses to upper management at year-end.
C. avoids paying dividends to stockholders.
D. avoids paying raises to employees.
I said A
39. under a perpetual inventory system, the account to which transportation charges on incoming
Merchandise is generally entered is
A. inventory.
B. FOB destination.
C. FOB shipping.
D. delivery expense.
I said D
44. When a merchandiser sells on account, which of the following is not needed to record the transaction?
A. Accounts receivable
B. Cash
C. Inventory
D. Cost of goods sold
I said B
61. Committing a fraud because the employee feels that it will be easy to do is indicative of which part of
The fraud triangle?
A. Rationalization
B. Perceived opportunity
C. Perceived pressure
D. Realization
I said C
76. Goods available for sale are $350,000; beginning inventory is $24,000; ending inventory is $32,000;
And cost of goods sold is $275,000. The inventory turnover is
A. 8.59.
B. 12.50.
C. 9.82.
D. 11.46.
I said C
82. The major difference in the statement of retained earnings between a service business and a
Merchandising business is
A. that the retained earnings statement of a merchandising business includes dividends.
B. that the retained earnings statement of a merchandising business shows the cost of goods sold.
C. that the retained earnings statement of a service business includes dividends.
D. nothing. There are no differences between the two.
I said D
98. Bill’s Bikes had sales for the week of $3,569, of which $2,900 was on credit and $659 was in cash
Sales. The cost of the bikes sold was $1,888. The journal entries would include a
A. debit to Cost of Goods Sold for $1,888; credit to Inventory for $1,888.
B. debit to Cash for $3569; credit to Sales for $3,569.
C. debit to Cost of Goods Sold for $1,888; credit to Sales of $1,888.
D. debit to Cash for $3,569; credit to Cost of Goods Sold for $3,569.
I said A
1 answer