Gleim 02/25
The following information pertained to Azur Co. for the year: Price of goods purchased $102,800 Price discounts 10,280 Freight-in 15,420 Freight-out 5,140 Beginning inventory 30,840 Ending inventory 20,560 What amount should Azur report as cost of goods sold for the year?
$118,220
The following costs pertain to Den Co.'s purchase of inventory: 700 units of product A $3,750 Freight-in 175 Insurance cost during transit of purchased goods 100 Cost of materials and labor incurred to bring product A to salable condition 900 Total $4,925 What amount should Den record as the cost of inventory as a result of this purchase?
$4,925
Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end: Credit sales $10,000,000 Accounts receivable 3,000,000 Allowance for credit losses 50,000 Marr uses 3% of accounts receivable to determine its allowance for credit losses at year end. By what amount should Marr adjust its allowance for credit losses at year end?
$40,000
The following information applied to Fenn, Inc., for the year just ended: Merchandise purchased for resale $400,000 Freight-in 10,000 Freight-out 5,000 Purchase returns 2,000 Fenn's inventoriable cost for the year was
$408,000
For the year ended December 31, Beal Co. estimated its allowance for credit losses using the year-end aging of accounts receivable. The following data are available: Allowance for credit losses, 1/1 $42,000 Uncollectible accounts written off, 11/30 46,000 Estimated uncollectible accounts per aging, 12/31 52,000 After year-end adjustment, the credit loss expense should be
$56,000
Mill Co.'s allowance for credit losses was $100,000 at the end of Year 2 and $90,000 at the end of Year 1. For the year ended December 31, Year 2, Mill reported credit loss expense of $16,000 in its income statement. What amount did Mill debit to the appropriate account in Year 2 to write off actual bad debts?
$6,000
Rue Co.'s allowance for credit losses had a credit balance of $12,000 at December 31, Year 1. During Year 2, Rue wrote off uncollectible accounts of $48,000. The aging of accounts receivable indicated that a $50,000 allowance for credit losses was required at December 31, Year 2. What amount of credit loss expense should Rue report for Year 2?
$86,000
A database is
A collection of related files.
Which of the following statements regarding inventory accounting systems is true?
A disadvantage of the periodic inventory system is that the cost of goods sold amount used for financial reporting purposes includes both the cost of inventory sold and inventory shortages.
Bee Co. uses the direct write-off method to account for uncollectible accounts receivable. During an accounting period, Bee's cash collections from customers equal sales adjusted for the addition or deduction of the following amounts:
Accounts Written Off: Deduction Increase in Accounts Receivable Balance: Deduction
Gibbs Co. uses the allowance method for recognizing credit losses on accounts receivable. Ignoring deferred taxes, the entry to record the write-off of a specific uncollectible account
Affects neither net income nor working capital.
Which method of recording credit loss expense accounts receivable is consistent with accrual accounting?
Allowance Yes Direct Write Off No
Which one of the following correctly depicts the hierarchy of storage commonly found in computerized databases, from least complex to most complex?
Byte, field, record, file.
Computers understand codes that represent letters of the alphabet, numbers, or special characters. These codes require that data be converted into predefined groups of binary digits. Such chains of digits are referred to as
Bytes.
Which of the following is a primary function of a database management system?
Capability to create and modify the database.
What is the correct ascending hierarchy of data in a system?
Character, field, record, file.
Based only on the database file excerpt presented below, which one of the fields or combinations of fields is eligible for use as a key?
Column III alone.
Which of the following is a false statement about a database management system application environment?
Data are shared by passing files between programs or systems.
An overall description of a database, including the names of data elements, their characteristics, and their relationship to each other, is defined by using a
Data definition language.
Of the following, the greatest advantage of a database (server) architecture is that
Data redundancy can be reduced.
DB2, Oracle, SQL Server, and Access are
Database management systems.
When the allowance method of recognizing credit losses on accounts receivable is used, the entry to record the write-off of a specific account
Decreases both accounts receivable and the allowance for credit losses.
The function of a data dictionary is to
Describe and share information about objects and resources.
In an inventory system on a database, one stored record contains part number, part name, part color, and part weight. These individual items are called
Fields.
Which of the following structures refers to the collection of data for all vendors in a relational data base?
File.
When the allowance method of recognizing credit losses on accounts receivable is used, how would the collection of an account previously written off affect gross accounts receivable and the allowance for credit losses?
Gross Accounts Receivable No Effect Allowance for Credit Losses Increase
Under the allowance method of recognizing credit losses on accounts receivable, the entry to write-off an uncollectible account
Has no effect on net income.
An entity's database is modeled after a tree structure, with each record type having any number of lower-level dependent records. This is an example of which type of database model?
Hierarchical.
One of the principal objectives of a database system is to
Improve data consistency by reducing data redundancy.
When the allowance method of recognizing uncollectible accounts is used, the entries at the time of collection of a small account previously written off that was not expected to be collected
Increase the allowance for credit losses.
The primary purpose of a database system is to have a single storage location for each
Item of data.
During the year, Hauser Co. wrote off a customer's account receivable. Hauser used the allowance method for credit losses on accounts receivable. What impact would the write-off have on net income and total assets?
Net Income No Effect Total Assets No Effect
Johnson Company uses the allowance method to account for credit losses on accounts receivable. After recording the estimate of credit loss expense for the current year, Johnson decided to write off in the current year the $10,000 account of a customer who had filed for bankruptcy. What effect does this write-off have on the company's current net income and total current assets, respectively?
Net Income No Effect Total Current Assets No Effect
A database has three record types: (1) for suppliers, a type that contains a unique supplier number, a supplier name, and a supplier address; (2) for parts, a type that contains a unique part number, a part name, a description, and a location; and (3) for purchases, a type that contains a unique supplier number referencing the supplier number in the supplier record, a part number referencing the part number in the part record, and a quantity. This database has a
Relational structure.
A logical view of an entire database is a
Schema.
When the allowance method of recognizing bad debt expense is used, the allowance would decrease when a(n)
Specific uncollectible account is written off.
Enabling users to have different views of the same data is a function of
The database management system.
One advantage of a database management system (DBMS) is
The independence of the data from the application programs, which allows the programs to be developed for the user's specific needs without concern for data capture problems.
Which of the following database models is considered to be the most versatile?
The relational model.