1. Wild's Flowers sells $400 of flowers for a wedding and thecustomer pays with a bank credit card (e.g., VISA). Wild's Flowersmust pay 3% to the credit card company for credit cardtransactions. Which one of the following statement is correct(true) with respect to the recording of this sale on the books ofWild's Flowers?
a) Sales is debited $400
b) Sales is credited $388.
c) Credit Card Discounts is debited $12.
d) Sales Discounts is debited $12.
2. Which one of the following is correct (true) with respect toinventory?
a) inventory is normally reported on the 3rd line, after A/R, inthe current asset section of a classified balance sheet
b) a manufacturing firm has only one type of inventory, which isfinished goods
c) if a company sells goods and agrees to pay the freight cost,this freight cost would be included in the COGS section of thecompany's income statement
d) goods in-transit at the end of the period, which were sold underterms FOB destination, should be included in the inventory of thebuyer (and not the seller)
a) Sales is debited $400
b) Sales is credited $388.
c) Credit Card Discounts is debited $12.
d) Sales Discounts is debited $12.
2. Which one of the following is correct (true) with respect toinventory?
a) inventory is normally reported on the 3rd line, after A/R, inthe current asset section of a classified balance sheet
b) a manufacturing firm has only one type of inventory, which isfinished goods
c) if a company sells goods and agrees to pay the freight cost,this freight cost would be included in the COGS section of thecompany's income statement
d) goods in-transit at the end of the period, which were sold underterms FOB destination, should be included in the inventory of thebuyer (and not the seller)
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17 accounting 1 questions! HELP
9. The following amounts and costs of platters were availablefor sale by Corpus Christy Ceramics during 2016:
Beginning inventory | 10 units at $41 |
First purchase | 15 units at $55 |
Second purchase | 30 units at $70 |
Third purchase | 25 units at $65 |
Corpus Christy Ceramics has 35 platters on hand at the end ofthe year.
What is the dollar amount of inventory at the end of the yearaccording to the weighted-average cost method?
Select one:
A. $4,340
B. $9,920
C. $3,465
D. $6,200
32. Santa Fe Corporation uses the perpetual inventory method. OnMarch 1, it purchased $60,000 of merchandise inventory, terms 2/10,n/30. On March 3, Santa Fe returned goods (not damaged) that cost$6,000. On March 9, Santa Fe paid the supplier.
On March 9, Santa Fe should credit:
Select one:
A. Purchase discounts for $1,200
B. Purchase discounts for $1,080
C. Inventory for $1,080
D. Inventory for $1,200
33. Rocky Company has beginning equity of $600,000, net incomeof $100,000, dividends of $60,000 and investments by owners inexchange for stock of $20,000. Its ending equity is:
Select one:
A. $660,000
B. $480,000
C. $536,000
D. $446,000
35. On September 1, 2016, Chopper, Inc. reported RetainedEarnings of $272,000. During the month of September, Choppergenerated revenues of $40,000, incurred expenses of $24,000,purchased equipment for $10,000 and paid dividends of $12,000.
What is the balance in Retained Earnings on September 30,2016?
Select one:
A. $272,000 debit
B. $276,000 credit
C. $ 16,000 credit
D. $274,000 credit
36. Savannah Company purchases $120,000 of inventory during theperiod and sells $36,000 of it for $60,000. Beginning of the periodinventory was $6,000.
What is the companyâs inventory balance to be reported on itsbalance sheet at year end?
Select one:
A. $36,000
B. $90,000
C. $ 4,000
D. $ 6,000
37. Assuming rising prices, which method will give the highestdollar value for cost of goods sold on the income statement?
Select one:
A. FIFO
B. Average Cost
C. LIFO
D. All of these give equal values for cost of goods sold
38. Kali Company began the period with $20,000 in inventory. Thecompany also purchased an additional $20,000 of inventory andreturned $2,000 for a full credit. A physical count of theinventory at yearâend revealed an inventory on hand of $16,000.What was Kaliâs cost of goods sold for the period?
Select one:
a. $50,000
b. $22,000
c. $48,000
d. $16,000
39. The periodic inventory system differs from the perpetualinventory system:
Select one:
because the periodic system is not compatible with moderntechnology.
because the periodic system continually updates inventory, whilethe perpetual inventory system only updates inventory at the end ofthe period.
because the perpetual system continually updates inventory,while the periodic inventory system only updates inventory at theend of the period.
because the periodic system is more complex and costly.
40. Which one of the following is included in currentassets?
Select one:
A. Common stock
B. Accounts receivable
C. Taxes payable
D. Automobiles
41. For the balance sheet to be in balance, the following mustexist:
Select one:
Total assets must be less than total liabilities
Total assets must be greater than total liabilities
Total assets must equal total liabilities plus stockholders'equity
Total liabilities must equal total stockholders' equity
43. Using a perpetual inventory system, the buyerâs journalentry to record the freight costs includes a:
Select one:
A. Debit to Purchases
B. Debit to Inventory
C. Debit to Freight In
D. Debit to Cost of Goods Sold
44. Joshua records purchases at invoice price and uses theperpetual inventory system. On July 5, Joshua returned $6,000 ofgoods purchased on account to the seller.
How would Joshua record this transaction?
Select one:
A.
Accounts Payable | 6,000 | ||
Purchases | 6,000 | ||
B.
Accounts Receivable | 6,000 | ||
Inventory | 6,000 | ||
C.
Accounts Payable | 6,000 | ||
Inventory | 6,000 | ||
D.
Cash | 6,000 | ||
Purchases | 6,000 | ||
45. Smith & Sons purchased $5,000 of merchandise from theClaremont Company with terms of 3/10, n/30. How much discount isSmith & Sons entitled to take if it pays within the alloweddiscount period of 10 days?
Select one:
$100
$50
$300
$150
46. The accounting record for Max III Company reported thefollowing selected information:
Operating Expenses | $180,000 |
Sales Returns and Allowances | 52,000 |
Sales Discounts | 24,000 |
Sales Revenue | 700,000 |
Cost of Goods Sold | 268,000 |
Determine Max III Company's gross profit.
Select one:
A. $332,000
B. $280,000
C. $308,000
D. $356,000
48. Using a a perpetual inventory system, the sellerâs journalentry to record the payment for merchandise, received from thebuyer, within the discount period includes a:
Select one:
A. Debit to Accounts Receivable
B. Debit to Cost of Goods Sold
C. Credit to Sales Discounts
D. Debit to Sales Discounts
49.Geraldoâs Groceries purchased milk cartons at an invoiceprice of $6,000 and terms of 2/10, n/30. On arrival of the goods,Geraldoâs realized that half of the milk was past the expirationdate, and returned them immediately to the supplier.
If Geraldoâs pays the remaining amount of the invoice within thediscount period, the amount paid should be:
Select one:
A. $2,880
B. $5,880
C. $2,940
D. $6,000
50. Which one of the following is not a current liability?
Select one:
A. Wages payable
B. Accounts payable
C. Wage expense
D. Taxes payable
1) Which of the following items would be reported net of taxesafter income from continuing operations?
Select one:
a. Gain or loss on the sale of property.
b. Loss due to a factory strike.
c. Interest expense.
d. Gain or loss on the sale of a major segment of theentity.
2)
Given the following list of accounts, calculate TotalAssets:
Accounts Receivable | $ 5,000 |
Capital Stock | 20,000 |
Cash | 14,300 |
Equipment | 15,400 |
Fees Earned | 44,400 |
Miscellaneous Expense | 18,200 |
Rent Expense | 4,150 |
Retained Earnings | 6,550 |
Wages Expense | 13,900 |
Select one:
a. $54,700
b. $26,550
c. $79,100
d. $34,700
3)
Which of the following is NOT associated with accrual basisaccounting?
Select one:
a. Income statement.
b. Matching principle.
c. Statement of cash flows.
d. Revenue recognition principle.
4)
Which of the following is an example of an intangible asset?
Select one:
a. Trademark
b. Timber
c. Equipment
d. Marketable securities
5)
Which of the following would be shown under the financingactivities section on the statement of cash flows?
Select one:
a. Cash received from customers.
b. The payment of cash to retire a long-term note.
c. Depreciation expense.
d. The proceeds from the sale of a building.
6)
A machine was purchased for $32,000 on April 1st. It has auseful life of 5 years and a residual value of $4,000. What is thedepreciation expense for the first fiscal year ending on December31st under the straight-line method?
Select one:
a. $1,400
b. $6,400
c. $4,200
d. $5,600
7)
The entry to record the signing of a contract to receiveinventory and make payment at a future date includes
Select one:
a. No debits or creditsâjust a memorandum.
b. A debit to cost of goods sold.
c. A credit to cash.
d. A debit to inventory.
8)
An inventory cost flow assumption is NOT needed for a productline
Select one:
a. If all of the inventory available for sale was purchased atthe same unit cost.
b. If all of the inventory looks the same.
c. If there is still some inventory on hand at the end of theyear.
d. If there is no beginning inventory carried over from theprevious accounting period.
9)
Fees received this period from customers for services to beperformed in the next accounting period, would be a(n)
Select one:
a. Expense disclosed on the statement of cash flows.
b. Revenue disclosed on the income statement.
c. Liability disclosed on the balance sheet.
d. Item not included on the financial statements until the nextaccounting period.
10)
Which of the following is TRUE of a corporation?
Select one:
a. They are incorporated with a national agency.
b. At least one owner has unlimited liability.
c. They are a separate taxable entity.
d. More than 70% of businesses are organized this way.
11)
The effects on the accounts of recording the cost of merchandisesold for cash using a perpetual inventory system include an
Select one:
a. Increase in Accounts Payable.
b. Increase in Merchandise Inventory.
c. Increase in Sales.
d. Increase in Cost of Goods Sold;
12)
Which of the following is NOT a limitation of externallyreported accounting information?
Select one:
a. The income statement contains atypical data due to the timingof the fiscal year end.
b. Accounting information relies on estimates.
c. Management has some discretion regarding the reportingclassification and choice of accounting measurement methods.
d. There is a hodge-podge of valuation techniques used on thefinancial statements.
13)
Given the following information regarding merchandise inventoryat the end of the fiscal year:
Ending inventory at cost $34,000
Ending inventory at market $33,400
Which of the following is correct?
Select one:
a. No journal entry should be made based upon the informationgiven.
b. Inventory should be reported on the balance sheet at$34,000.
c. Inventory should be reported on the balance sheet at$33,400.
d. A journal entry should be made to recognize a gain of$600.
14)
Which of the following describes the closing process when acompany has net earnings for the period?
Select one:
a. The Dividends account is debited for its balance.
b. The individual asset accounts are credited for theirbalances.
c. The individual expense accounts are debited for theirbalances.
d. The Income Summary account is debited for its balance.