Ch 8 Video Questions

Rector Company had cash sales of $10,000 on May 3. Rector collected an additional $500 of sales tax from​customers, for total cash collected of $10,500. What would Rector record as sales revenue for the ​day?

$10,000

Royer Company had cash sales of $12,500 on May 3. Royer collected an additional $350 of sales tax from​ customers, for total cash collected of $12,850. What would Royer record as sales revenue for the​ day?

$12,500

Royer Corporation reports Cost of Goods Sold of $240,000​, Ending Inventory of $28,000​, Beginning Inventory of $44,000​, Ending Accounts Payable of $26,000 and Beginning Accounts Payable of $13,000. What is the accounts payable​turnover?

11.49

Corporation reports Cost of Goods Sold of $250,000​, Ending Inventory of $30,000​, Beginning Inventory of $40,000​, Ending Accounts Payable of $22,000 and Beginning Accounts Payable of $12,000. What is the accounts payable​ turnover?

14.12

Robinson Corporation reports Cost of Goods Sold of $300,000, Ending Inventory of $27,000​, Beginning Inventory of $34,000​, Ending Accounts Payable of $18,000 and Beginning Accounts Payable of $8,000. What is the accounts payable turnover in days​(DPO)? ​(Round any intermediary calculations and your final answer two decimal​places, X.XX.)

16.19

Mueller Corporation reports Cost of Goods Sold of $250,000​, Ending Inventory of $30,000​, Beginning Inventory of $40,000​, Ending Accounts Payable of $22,000 and Beginning Accounts Payable of $12,000. What is the accounts payable turnover in days​ (DPO)? ​(Round any intermediary calculations and your final answer two decimal​ places, X.XX.)

25.85

All contingent liabilities should be reported on the financial​ statements, even those that are unlikely to occur.

False

The issuance of a​ short-term note payable to purchase inventory will reduce both assets and liabilities on the date of issuance.

False

What type of account is Current Portion of​ Long-Term Debt?

Liability

What type of account is Unearned​ Revenue?

Liability

Purchasing merchandise inventory on account results in a liability.

True