ACC

QN=28 Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote offthe $3,000 uncollectible account of its customer, P. Best. The journal entry on May 3 is: a. Dr allowance for doubtful debts 3000 Cr account receivable 3000 b. Dr bad debt expense 3000 Cr account receivable 3000 c. Dr bad debt expense 3000 Cr Allowance for doubtful debt 3000 d. Dr account receivable 3000 Cr bad debt expense 3000 e. Dr Accounts receivable 3000 Cr Cash 3000

a.

QN=18 A company had inventory of 15 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 12 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? a. $454. b. $366. c. $450. d. $570. e. $520.

a. $454

QN=25 Which of the following is a liability? a. Account payable b. Account receivable c. Cash d. Inventory e. expense

a. Account Payable

QN=1 Merchandise inventory includes: a. All goods owned by a company and held for sale. b. All goods in transit. c. All goods on consignment. d. Only damaged goods. e. All goods in the stores of company.

a. All goods owned by a company and held for sale

QN=6 An overstatement of ending inventory will cause a. An overstatement of assets and equity on the balance sheet. b. An understatement of assets and equity on the balance sheet. c. An overstatement of assets and an understatement of equity on the balance sheet. d. An understatement of assets and an overstatement of equity on the balance sheet. e. No effect on the balance sheet.

a. An overstatement of assets and equity on the balance sheet

QN=30 Electron borrowed $15,000 cash from TechCom by signing a promissory note. TechCom's entry to record the transaction should include a: a. Debit to Notes Receivable for $15,000. b. Debit to Accounts Receivable for $15,000. c. Credit to Notes Receivable for $15,000. d. Debit Notes Payable for $15,000. e. Credit to Cash for $15,000.

a. Debit to Notes receivable for $15,000

QN=4 The inventory valuation method that results in the lowest taxable income in a period of inflation is: a. LIFO method. b. FIFO method. c. Weighted-average cost method. d. Specific identification method. e. Gross profit method.

a. LIFO method

QN=19 A company that uses a perpetual inventory system made the following cash purchases and sales: Jan, 1: Purchased 100 units at $10 per unit. Feb, 5: Purchased 60 units at $12 per unit. March, 16: Sold 40 units for $ 16 per unit. Prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is used. a. March 16 Dr Cash 400 Cr Sale revenue 400 Dr COGS 640 Cr Inventories 640 b. March 16 Dr Cash 640 Cr Sale revenue 640 Dr COGS 400 Cr Inventories 400 c. March 16 Dr Sale revenue 640 Cr Cash 640 Dr COGS 400 Cr Inventories 400 d. March 16 Dr Sale revenue 640 Cr Cash 640 Dr Inventories 400 Cr COGS 400 e. None of these

b.

QN=11 A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold? a. $120. b. $124. c. $128. d. $130. e. $140.

b. $124

QN=16 A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of ending inventories? a. $120. b. $216. c. $128. d. $130. e. $140.

b. $216

QN=8 A company had the following purchases during the current year: Jan: 10 units at $ 120 Feb: 20 units at $130 May: 15 units at $140 Sep: 12 units at $150 Nov: 10 units at $160 On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory? a. $3,500. b. $3,800. c. $3,960. d. $3,280. e. $3,640.

b. $3,800

QN=22 A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? a. $570 b. $470 c. $670 d. $370 e. $740

b. $470

QN=13 A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $21 each. On November 6 it purchased 15 units at $25 each. On November 8, it sold 20 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 20 units sold? a. $395. b. $480. c. $375. d. $510. e. $520.

b. $480

QN=20 A company that uses a perpetual inventory system made the following cash purchases and sales: Jan, 1: Purchased 100 units at $10 per unit. Feb, 5: Purchased 60 units at $12 per unit. March, 16: Sold 40 units for $ 16 per unit. Prepare the general journal entry to record the March 16 sale assuming a cash sale and the LIFO method is used: a. Dr Cash 640 Cr Sale revenue 640 Dr COGS 450 Cr Inventories 450 b. Dr Cash 640 Cr Sale revenue 640 Dr COGS 840 Cr Inventories 840 c. Dr Cash 640 Cr Sale revenue 640 Dr COGS 480 Cr Inventories 480 d. Dr Sale revenue 640 Cr cash 640 Dr COGS 480 Cr Inventories 480 e. None of these

c.

QN=15 Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. June, 1: Beginning inventory 15 units at $20 each June, 15: Sale of 6 units at $50 June, 29: Purchased of 8 units at $25 The cost of goods sold is : a. $200. b. $220. c. $120. d. $275. e. $300.

c. $120

QN=14 Acme-Jones Company uses a weighted-average perpetual inventory system. August 2, 8 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. August 29, 20 units were sold. August 31, 10 units were purchased at $16 per unit. What is the per-unit value of ending inventory on August 31? a. $12.00. b. $13.30. c. $15.38. d. $16.00. e. $17.74.

c. $15.38

QN=10 Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. August 29, 12 units were sold. What was the amount of the cost of goods sold for this sale? a. $148.00. b. $150.50. c. $158.40. d. $210.00. e. $330.00.

c. $158,4

QN=17 A company has inventory of 20 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 15 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO periodic inventory method, what is the value of Cost of goods sold on August 15? a. $140. b. $160. c. $370. d. $210. e. $590.

c. $370

QN=29 A company has $20,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts is $800. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: a. $1200 b. $500 c. $400 d. $1000 e. None of these

c. $400

QN=12 A company has inventory of 15 units at a cost of $2 each on August 1. On August 5, it purchased 10 units at $3 per unit. On August 12 it purchased 20 units at $4 per unit. On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale? a. $140. b. $80. c. $60. d. $30. e. $70.

c. $60

Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used? a. FIFO and LIFO b. LIFO and weighted-average cost c. Specific identification and FIFO d. FIFO and weighted-average cost e. LIFO and specific identification

c. Specific indentification and FIFO

QN=23 Which of the following is not considered as subcategory of owner's Equity? a. Revenue b. Withdrawal c. Assets d. Expense e. Contributed capital

c. assets

QN=24 The properties used in operation activities of a business is call: a. Revenue b. Withdrawal c. Assets d. Expense e. Liabilities

c. assets

QN=21 A company that uses a perpetual inventory system made the following cash purchases and sales: Jan, 1: Purchased 100 units at $10 per unit. Feb, 5: Purchased 60 units at $12 per unit. March, 16: Sold 40 units for $ 16 per unit. Prepare the general journal entry to record the March 16 sale assuming a cash sale and the weighted average method is used. a. Dr Cash 640 Cr Sale revenue 640 Dr COGS 450 Cr Inventories 450 b. Dr Cash 640 Cr Sale revenue 640 Dr COGS 340 Cr Inventories 340 c. Dr Cash 640 Cr Sale revenue 640 Dr COGS 470 Cr Inventories 470 d. Dr Cash 640 Cr Sale revenue 640 Dr COGS 430 Cr Inventories 430 e. None of thes

d.

QN=27 Which of the following is not a category or element of the balance sheet? a. Expense b. Liabilities c. Assets d. Account payable e. Loan

d. expense

QN=9 A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale? a. $304 b. $296 c. $288 d. $280 e. $276

e. $276

QN= 7 Acceptable inventory methods include: a. LIFO method. b. FIFO method. c. Specific identification method. d. Weighted average method. e. All of these.

e. All of there

QN=3 During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: a. Specific identification method. b. Average cost method. c. Weighted-average method. d. FIFO method. e. LIFO method

e. LIFO method

QN=26 Which of the following is not a liability? a. Account payable b. Note payable c. Short term loan d. Long term loan e. Short term investment

e. Short term investment

QN=2 Costs included in the Merchandise Inventory account can include: a. Invoice price minus any discount. b. Transportation-in. c. Storage. d. Insurance. e. All of these.

e. all of these