Financial Accounting

Financial statement data at December 31 for Ecco Company are as follows:Cost of goods sold$552,500Inventories:Beginning of year200,000End of year140,000Determine inventory turnover for the year. a.2.76 b.3.95 c.3.25 d.1.63

c Cost of Goods Sold divided by Average Inventory = $552,500 ÷ [($200,000 + $140,000) ÷ 2] = $552,500 ÷ $170,000 = 3.25

Determine the cost of goods sold for the transaction on September 25 using the perpetual inventory system and the FIFO method. DateItem Units Cost Total Beginning inventory 5 $5 $25 September 4 Purchase 8 $6 $48 September 8 Sale 6 September 20 Purchase 15 7 105 September 25. Sale 12 a.$73 b.$105 c.$77 d.$84

c FIFO: (7 × $6) + (5 × $7) = $77

Inventory turnover is computed as a.Sales divided by Cost of Goods Sold. b.Average Inventory divided by Sales. c.Cost of Goods Sold divided by Average Inventory. d.Average Inventory divided by Average Daily Cost of Goods Sold

c Inventory Turnover = Cost of Goods Sold ÷ Average Inventory

A $100 petty cash fund has cash of $20 and receipts of $82. The journal entry to replenish the account would include a a.debit to Cash for $80. b.credit to Cash for $82. c.credit to Petty Cash for $82. d.credit to Cash Short and Over for $2

d

Cash equivalents a.will be converted to cash within two years. b.will be converted to cash within 120 days. c.are illegal in some states. d.are highly liquid investments that earn interest

d

Companies may sell their receivables. This practice is called a.dumping. b.hedging. c.expensing. d.factoring.

d

Daily cash operating expenses are calculated as a.Negative Cash Flow from Operations/12. b.Total Expenses/365. c.Cash as of Year-End/12. d.(Operating Expenses − Depreciation Expense)/365.

d

Entries are made to the petty cash account when a.recording shortages in the fund. b.replenishing the fund. c.making payments out of the fund. d.decreasing the established amount of the petty cash fund.

d

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account which had been written off on March 1, the entry to reinstate the account under the direct write-off method would include a.a credit to Cash of $3,650. b.a debit to Bad Debt Expense of $3,650. c.a debit to Allowance for Doubtful Accounts of $3,650. d.a credit to Bad Debt Expense of $3,650

d

Internal control does not consist of policies and procedures that a.aid management in directing operations toward achieving business goals. b.ensure that business information is accurate. c.protect assets from misuse. d.guarantee the company will make a profit.

d

Journal entries based on the bank reconciliation are required in the depositor's accounts for a.outstanding checks. b.deposits in transit. c.bank errors. d.NSF items

d

The company section of the bank reconciliation does not a.begin with the cash balance according to the company's records . b.end with the adjusted balance. c.deduct debit memos that have not been recorded. d.include outstanding checks

d

The cost method that will yield an ending inventory that is closer to current prices is the a.LIFO inventory cost method. b.specific identification inventory cost method. c.weighted average inventory cost method. d.FIFO inventory cost method.

d

Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,000. It is estimated that it will be good for 5,000 hours. Compute the depreciation expense for the first year using the units-of-activity method of depreciation assuming the generator was used for 1,040 hours. a.$208 b.$2,288 c.$2,080 d.$2,000

c ($11,000 − $1,000)/5,000 hours = $2.00 per hour; $2.00 × 1,040 hours = $2,080

The cost method that will yield an ending inventory value that is somewhere between possible high and low costs (prices) using traditional costing methods is the a.specific identification inventory cost method. b.LIFO inventory cost method. c.weighted average inventory cost method. d.FIFO inventory cost method

c

The debit balance in Cash Short and Over at the end of an accounting period is reported as a.income on the income statement. b.a liability on the balance sheet. c.an expense on the income statement. d.an asset on the balance sheet.

c

The journal entry to record a note received from a customer to apply on account is a a.debit to Cash and a credit to Notes Receivable. b.debit to Notes Receivable and a credit to Cash. c.debit to Notes Receivable and a credit to Accounts Receivable. d.debit to Accounts Receivable and a credit to Notes Receivable

c

The number of days' sales in inventory measures a.the average costs in receivable balances. b.the weighted average of time it takes to acquire, sell, and replace inventory. c.the length of time it takes to acquire, sell, and replace inventory. d.the efficiency and effectiveness of liability management

c

The number of days' sales in receivables a.is calculated as Average Receivables/Sales. b.is not useful in evaluating the efficiency of collecting receivables. c.is an estimate of the length of time the receivables have been outstanding. d.measures the number of times the receivables turn over each year.

c

The operating cycle of a business is comprised of all of the following except for a.purchase activity. b.collection activity. c.financial statement preparation. d.sales activity.

c

When using the periodic FIFO inventory cost method, which of the following statements is false? a.The physical count determines the inventory on hand. b.The cost of inventory on hand is made up of the most recent costs. c.The cost of inventory on hand is made up of the earliest costs. d.The cost of goods sold is made up of the earliest purchases.

c

Which of the following methods and bases of accounting for uncollectible accounts receivable is inconsistent with the proper application of matching? a.Percentage of receivables basis b.Aging of receivables allowance method c.Direct write-off method d.Percentage of sales method

c

During the month, merchandise is sold for $23,500 cash and for $34,000 on account. The cost of goods sold is $41,500. What is the amount of gross profit? a.$23,500 b.$41,500 c.$16,000 d.$57,500

c Correct. ($23,500 + $34,000) − $41,500 = $16,000 Gross profit = revenue - cost of goods sold

During the month, merchandise is sold for $80,500 cash and for $119,000 on account. The cost of goods sold is $101,500. What is the amount of gross profit? a.$199,500 b.$80,500 c.$98,000 d.$119,000

c Correct. ($80,500 + $119,000) − $101,500 = $98,000

Global Company purchased merchandise on account from Planet Company for $56,000 with terms 1/15, net 45. Global Company returned $6,000 of the merchandise and received full credit from Planet Company. Which of the following will be included in the journal entry for the payment (assume that the amount due was paid within the discount period)? a.Credit to Cash, $49,500 b.Debit to Accounts Payable, $56,000 c.Debit to Purchases, $56,000 d.Credit to Cash, $55,440

Correct. Accounts Payable49,500 Cash 49,500[$56,000 _ ($56,000 × 1%)] - [$6,000 - ($6,000 × 1%)]

A note receivable due in 11 months is listed on the balance sheet under the caption a.current assets. b.long-term liabilities. c.investments. d.fixed assets

a

Credit terms are terms for a.when inventory is purchased. b.when the payments for merchandise are to be made. c.when payments for merchandise are to be made with cash. d.when the returns of merchandise are to be made.

b

A primary weakness of the direct write-off method is that a.the expense of a bad debt is not matched to the period that generated the uncollectible sale amount. b.it is too difficult for many companies to use. c.it understates accounts receivable on the balance sheet. d.it is based on estimates

a

All except which of the following will be included in the cost of a fixed asset? a.Mistakes in installation b.Direct costs of new construction c.Freight costs d.Cost of installing equipment

a

All of the following are considered fixed assets except a.copyrights. b.building. c.land improvements. d.land.

a

Allowance for Doubtful Accounts will have a.an unadjusted credit balance at the end of the period if the write-offs during the period were less than the beginning balance. b.an unadjusted debit balance at the end of the period if the write-offs during the period were less than the beginning balance. c.an unadjusted credit balance at the end of the period if the write-offs during the period were more than the beginning balance. d.an unadjusted debit balance at the end of the period if the write-offs during the period were equal to the beginning balance.

a

Cost of goods sold is reported as a(n) a.expense. b.current asset. c.current liability. d.long-term asset.

a

In a perpetual inventory system a.each purchase and sale of inventory is recorded in the inventory account. b.the inventory records cannot be computerized. c.a count must be made in order to know the inventory amount. d.the amount of inventory for sale and the amount sold are not listed in the inventory account.

a

In the current assets section of the balance sheet, receivables are usually listed in order a.that they can be turned into cash. b.alphabetically. c.of due date. d.of size.

a

Notes and accounts receivable that result from sales transactions are sometimes called a.trade receivables. b.fixed assets. c.intangible assets. d.current liabilities

a

The bank section of the bank reconciliation a.ends with the adjusted balance. b.includes interest collected by the bank. c.begins with the cash balance according to the company's records. d.ends with the unadjusted bank balance

a

The direct write-off method records bad debt expense a.only when an account is judged to be worthless. b.at the point of sale. c.on the due date of the receivable. d.at the end of each reporting period

a

A 90-day, 10% note for $9,000, dated April 15, is received from a customer on account. The face value of the note is a.$9,900. b.$9,225. c.$9,000. d.$8,100.

c

The face value of a promissory note is a.the amount for which the note is written. b.its realizable value. c.the face value less the interest due at the maturity date. d.the amount for which the note is written plus the interest due at the maturity date.

a

When using the periodic LIFO inventory cost method, which of the following statements is true? a.The physical count determines the inventory on hand. b.The cost of goods sold is made up of the earlier purchases. c.The cost of goods sold is made up by averaging the end-of-period and beginning-of-period purchases. d.The cost of inventory on hand is made up of the most recent purchases.

a

A special-purpose fund is for a.postage expenses. b.office supplies expenses. c.travel expenses. d.minor repairs

c

Which of the following does not relate to either of the two adjusting entries for customer refunds, allowances, and returns? a.One entry records the sales of goods to customers. b.One entry reduces the sales account. c.One entry creates an estimated returns inventory account. d.One entry creates a customer refund liability account

a

Determine the value of the inventory at the lower of cost or market, assuming LCM is applied to each class. Item Inv Qnt Cost per Unit M Value Class 1 Bay 3 $34 $30 Palomino 2 28 32 Subtotal Class 2: Chestnut 12 16 25 Pinto 9 13 20 Subtotal a.$455 b.$463 c.$467 d.$634

b

Accounts receivable turnover is calculated by dividing a.average accounts receivable by sales. b.average accounts receivable by average daily sales. c.sales by average accounts receivable. d.days' sales in receivables by accounts receivable ending balance.

c

All of the following are considered fixed assets except a.building. b.land improvements. c.copyrights. d.land

c

Estimating inventory may be needed for all of the following reasons except a.when monthly or quarterly financial statements are needed, but a physical inventory is taken only once a year. b.when the periodic method is used instead of taking a physical inventory. c.when a fire has destroyed the inventory and inventory records. d.when it is impractical to take a physical inventory.

b

Average inventory is computed as a.(Inventory at the Beginning of the Period + Inventory at the End of the Period) ÷ 365 days. b.(Inventory at the Beginning of the Period − Inventory at the End of the Period) ÷ 365 days. c.(Inventory at the Beginning of the Period + Inventory at the End of the Period) ÷ 2. d.(Inventory at the Beginning of the Period − Inventory at the End of the Period) ÷ 2.

c

Which of the following statements is not true when comparing the percent of sales method and analysis of receivables methods of estimating the allowance for uncollectible accounts? a.Over time, the percent of sales method will yield a higher allowance. b.Under the percent of sales method, the estimate emphasizes the income statement (Bad Debt Expense). c.Under the analysis of receivables method, the estimate emphasizes the balance sheet (Allowance for Doubtful Accounts balance). d.Over time, the percent of sales and analysis of receivables methods yield similar allowances.

a

Which of the following would appear as a credit memorandum on the bank statement? a.EFT deposit b.Bank correction of an error from recording a $300 check paid as $30 c.NSF check d.Service charge

a

Which of these is a minimum cash account balance that is required by a bank? a.Compensating balance b.Bank loan c.Line of credit d.Cash equivalent

a

Determine the operating income using the following information: Sales. $340,100 Cost of goods sold. 252,000 Selling expenses 25,200 Administrative expenses 12,500 a.$62,900 b.$340,100 c.$50,400 d.$88,100

c

The cash, land, inventory, and accounts receivable accounts are shown on the balance sheet. In which order should they be listed? a.Cash, Inventory, Accounts Receivable, and Land b.Inventory, Accounts Receivable, Cash, and Land c.Cash, Accounts Receivable, Inventory, and Land d.Land, Inventory, Accounts Receivable, and Cash

c

The cost method that will yield an ending inventory that is closer to current prices is the a.LIFO inventory cost method. b.weighted average inventory cost method. c.FIFO inventory cost method. d.specific identification inventory cost method

c

Several controls are used to safeguard inventory, and one of those is to a.hire security guards. b.allow one employee to order inventory, check in shipments, and stock shelves with inventory to prevent errors. c.keep low-priced inventory behind lock and key. d.allow all employees access to the materials warehouse

a Correct. Several controls are used to safeguard inventory, including using two-way mirrors, cameras, security tags, and guards.

When using the periodic LIFO inventory cost method, which of the following statements is true? a.The physical count determines the inventory on hand. b.The cost of goods sold is made up by averaging the end-of-period and beginning-of-period purchases. c.The cost of goods sold is made up of the earlier purchases. d.The cost of inventory on hand is made up of the most recent purchases.

a Incorrect. When using the periodic LIFO inventory cost method, the cost of inventory on hand is made up of the earlier purchases

Extra Co. uses the direct write-off method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would include a a.debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. b.debit to Bad Debt Expense and a credit to Accounts Receivable. c.debit to Accounts Receivable and a credit to Bad Debt Expense. d.debit to Sales Returns and Allowances and a credit to Accounts Receivable

b

Inventory is found on the balance sheet as a a.long-term asset. b.current asset. c.current liability. d.long-term liability.

b

Inventory is reported as a(n) a.expense. b.current asset. c.current liability. d.long-term asset

b

On a multiple-step income statement, selling expenses plus administrative expenses is equal to a.total other expense. b.total operating expenses. c.total expenses. d.cost of goods sold.

b

Other disclosures related to receivables are reported a.only in the financial statement notes. b.either on the face of the financial statements or in the financial statement notes. c.on the income statement. d.only on the face of the financial statements

b

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 2% of sales. If sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is a.$12,000. b.$11,500. c.$11,990. d.$12,500.

a The bad debt expense using the percent of sales method is calculated by multiplying the estimated percentage times the sales: $600,000 × 2% = $12,000. The balance in Allowance for Doubtful Accounts is ignored when using the percent of sales method.

Determine the gross profit using the periodic inventory system and the FIFO inventory method, assuming that 18 units were sold at a sales price of $14. Date Item Units Cost Total January 1 Beginning inventory 5 $3 $15 January 12. Purchase 10 4 40 January 18. Purchase 8 5 40 Totals23. $95 a.$182 b.$80 c.$95 d.$252

a FIFO: Sales − Cost of Goods Sold = Gross Profit; (18 units × $14) − [(5 × $3) + (10 × $4) + (3 × $5)] = $182

Determine the gross profit using the periodic inventory system and the FIFO inventory method, assuming that 18 units were sold at a sales price of $14.DateItemUnitsCostTotalJanuary 1Beginning inventory5$3$15January 12Purchase10440January 18Purchase8540Totals23$95 a.$182 b.$95 c.$80 d.$252

a FIFO: Sales − Cost of Goods Sold = Gross Profit; (18 units × $14) − [(5 × $3) + (10 × $4) + (3× $5)] = $182

Sales less cost of goods sold is a.operating income. b.gross profit. c.gross sales. d.net profit.

b

All of the following are considered repairs or improvements to fixed assets except a.asset improvements. b.necessary maintenance costs. c.ordinary maintenance and repairs. d.extraordinary repairs.

b

A check drawn by a depositor for $510 in payment of a liability was recorded in the journal as $150. What entry is required in the depositor's accounts? a.Debit Accounts Payable, $360; credit Cash, $360 b.Debit Cash, $360; credit Accounts Receivable, $360 c.Debit Cash, $510; credit Accounts Payable, $510 d.Debit Accounts Receivable, $360; credit Cash, $360

a. The cash balance and the liability balance were decreased by $360 ($510-$150) too little. Thus, the difference must be deducted from both account balances.

A bank statement a.lets a depositor know the financial position of the bank as of a certain date. b.provides a summary of all checking account transactions recorded by the bank. c.is a credit reference letter written by the depositor's bank. d.is a bill from the bank for services rendered

b

All except which of the following will be included in the cost of a fixed asset? a.Freight costs b.Mistakes in installation c.Direct costs of new construction d.Cost of installing equipment

b

Sarbanes-Oxley does not require a.all publicly held companies to comply with the act. b.companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors. c.companies and their independent accountants to report on the effectiveness of the companies' internal controls. d.companies to file their internal control reports with the 10-K report with the Securities and Exchange Commission.

b

The allowance method is required a.for federal income tax purposes. b.by GAAP. c.for companies that factor their receivables. d.where receivables are a small part of the current assets.

b

The company section of the bank reconciliation does not a.end with the adjusted balance. b.include outstanding checks. c.begin with the cash balance according to the company's records. d.deduct debit memos that have not been recorded

b

The difference between the balance sheets of a service company and a retail company is that the retail company's balance sheet includes a.cost of goods sold. b.inventory. c.gross profit. d.sales

b

The numerator in the asset turnover ratio is a.average current assets. b.sales. c.average long-term assets. d.average total assets.

b

The specific identification inventory method cannot be used. a.when the unit sold is identified with a specific purchase. b.when all units sold are alike. c.by an automobile dealer where automobiles have unique serial numbers. d.when each inventory unit can be specifically identified.

b

The term cash does not include a.money orders. b.notes receivable. c.checks. d.money on deposit that is available for unrestricted withdrawal.

b

Under the allowance method, when a specific account is written off, a.total assets will increase. b.total assets will be unchanged. c.total assets will decrease. d.net income will decrease.

b

What is not considered an advantage of using the retail method of inventory costing? a.The retail method allows management to monitor operations more closely. b.The retail method uses specific costs to compute inventory. c.The retail method may be used as an aid in taking a physical inventory. d.The retail method provides inventory figures for preparing monthly and quarterly financial statements when the periodic system is used.

b

When identical units of an item are purchased at different costs a.an inventory cost flow method is not used under either a perpetual or a periodic inventory system. b.an inventory cost flow method must be used under both a perpetual and a periodic inventory system. c.an inventory cost flow method must be used under a periodic inventory system only. d.an inventory cost flow method must be used under a perpetual inventory s

b

Which one of the following is not an element of internal control? a.Monitoring b.Management's philosophy and operating style c.Risk assessment d.Control procedures

b

Financial statement data for the year ending December 31 for Flagg Co. are as follows:Sales$4,250,000Accounts receivable:Beginning of year600,000End of year630,000Determine the number of days' sales in receivables for the year. a.54.1 days b.52.8 days c.50.0 days d.51.5 days

b ($600,000 + $630,000)/2 = $615,000; $4,250,000/365 = $11,644; $615,000/$11,644 = 52.8 days

A physical inventory is not used to a.investigate major errors. b.journalize the daily transactions in the inventory account. c.help prevent employee theft or misuse of inventory. d.compare actual inventory to book inventory.

b A physical inventory is used to compare actual inventory to recorded inventory to determine the amount of shrinkage, to help prevent employee theft or misuse of inventory, and investigate major errors.

Inventory turnover is computed as a.Average Inventory divided by Average Daily Cost of Goods Sold. b.Cost of Goods Sold divided by Average Inventory. c.Sales divided by Cost of Goods Sold. d.Average Inventory divided by Sales.

b Inventory Turnover = Cost of Goods Sold ÷ Average Inventory

Financial statement data at December 31 for Ecco Company are as follows:Cost of goods sold$552,500Inventories:Beginning of year200,000End of year140,000Determine inventory turnover for the year. a.1.63 b.3.25 c.2.76 d.3.95

b. Cost of Goods Sold divided by Average Inventory = $552,500 ÷ [($200,000 + $140,000) ÷ 2] = $552,500 ÷ $170,000 = 3.25

Determine the ending inventory using the FIFO cost flow method, assuming that only one item was sold on March 24 for $14. Date. Item. Units. | Cost. | Total March 3 Purchase | 1. | $6 | $6 March 8Purchase1 7 7March 22Purchase1 8 8 Total3$21 a.$13 b.$14 c.$15 d.$7

c. $7 + $8 = $15

Using the gross method of recording sales discounts, customers with outstanding accounts receivable balances on December 31, 20Y7, will pay their balances in 20Y8. Assume that Calvin Hobbs pays his December 31, 20Y7 account receivable of $8,000 on January 8, 20Y8, and takes a 2/10 sales discount. The payment should be recorded as follows: a.a credit of $8,000 Cash, a credit of $160 to Allowance for Sales Discounts, and a debit of $8,160 to Accounts Receivable—Calvin Hobbs. b.a debit of $7,840 to Cash, a debit of $160 to Sales, and a credit of $8,000 to Accounts Receivable—Calvin Hobbs. c.a debit of $8,000 to cash and a credit of $8,000 to Accounts Receivable—Calvin Hobbs. d.a debit of $7,840 to Cash, a debit of $160 to Allowance for Sales Discounts, and a credit of $8,000 to Accounts Receivable—Calvin Hobbs.

d

When a periodic inventory system is used a.only the reduction of inventory is recorded each time a sale is made. b.both revenue and cost of goods sold are recorded each time a sale is made. c.only the cost of goods sold is recorded each time a sale is made. d.only revenue is recorded each time a sale is made.

d

Which inventory cost method offers income tax savings during periods of rising prices? a.Weighted average inventory cost method b.FIFO inventory cost method c.Specific identification inventory cost method d.LIFO inventory cost method

d

Which of the following is not a desired result of the Sarbanes-Oxley Act? a.Effective internal controls over the preparation of financial statements b.The deterring of fraud and theft c.Strong internal controls over the recording of transactions d.The elimination of auditor reporting on a company's internal controls

d

Which of the following is not one of the most common depreciation methods? a.Double-declining-balance method b.Units-of-activity method c.Straight-line method d.Sum-of-the-years-digits method

d

Which of the following is true regarding the perpetual FIFO inventory costing method? a.Unit costs for each item are averaged each time a purchase is made. b.The cost of the units sold is always the cost of the original units purchased. c.The cost of the units sold is the cost of the most recent purchases. d.Costs are included in the cost of goods sold in the order in which units were

d

Gordon Company uses the retail method of inventory costing. The retail value of the ending inventory is $325,000. If the ratio of cost to retail price is 66%, what is the amount of the ending inventory to be reported on the financial statements? a.$110,500 b.$107,250 c.$325,000 d.$214,500

d $325,000 × 66% = $214,500

The following financial statement data are for the year ending December 31 for Agency Company:Sales$200,000Total assets:Beginning of year170,000End of year150,000What is the asset turnover ratio for the year? a.1.33 b.1.17 c.1.60 d.1.25

d Correct. $200,000/[($170,000 + $150,000)/2] = 1.25

At the end of the year, assume the balance of Inventory is $109,225 and physical inventory on hand is $106,320. The adjusting journal entry to record shrinkage will be a.a $2,905 debit to Inventory and a $2,905 credit to Cost of Goods Sold. b.a $109,225 debit to Inventory and a $109,225 credit to Cost of Goods Sold. c.a $215,545 debit to Cost of Goods Sold and a $215,545 credit to Inventory. d.a $2,905 debit to Cost of Goods Sold and a $2,905 credit to Inventory

d Correct. Shrinkage is calculated by deducting Physical Inventory from Inventory ($109,225 − $106,320 = $2,905). Cost of Goods Sold is debited and Inventory is credited

Days' cash on hand of 52 would be considered a.too high and an indication that the company is not returning profits back to owners. b.too low and would be a cause for concern for creditors. c.too high and an indication that the company is not investing profits back into the business. d.adequate for most businesses

d Days' cash on hand greater than 50 days would be considered adequate for businesses.

When comparing the adjusting process under the perpetual and the periodic inventory systems, a.the cost of goods sold account is reduced by the cost of estimated returns inventory for the current year under the perpetual inventory system. b.the inventory shrinkage adjustment is the same under both systems. c.no entry is made for estimated returns inventory under the periodic inventory system. d.the ending inventory is determined by a physical count under both systems

d The ending inventory is determined by a physical count under both systems.

If Accounts Receivable for Sally Company is equal to $56,850 and Allowance for Doubtful Accounts is $2,375 at December 31, what is the amount of net receivables shown on Sally's balance sheet of the same date? a.$59,225 b.$56,850 c.$54,115 d.$54,475

d The net amount of receivables is $56,850 − $2,375 = $54,475.

Given the following balance sheet and income statement data for the year ended December 31, what is the final figure for the numerator in the formula for the days' cash on hand?Cash$. 300,000 Short-term investments 400,000 Accounts receivable. 900,000 Total operating expenses 640,000 Depreciation expense. 140,000 a.$500,000 b.$1,600,000 c.$300,000 d.$700,000

d Cash+ short-term

Inventory cost flow assumptions address accounting issues when a.an item is sold and it is necessary to determine its sales price. b.different units of merchandise are acquired at the same unit cost during the period. c.an item is purchased and it is necessary to determine its cost. d.identical units of merchandise are acquired at different unit costs during th

d.

The steps in preparing closing entries under the periodic inventory system include all of the following except a a.credit each expense account, purchases, and Freight In. b.debit Inventory for its end-of-period balance. c.debit each revenue account, purchases discounts, and purchases returns and allowances. d.credit cost of goods sold for its balance.

d. Cost of Goods Sold in not part of the closing process under a periodic inventory system.