ACC 201-Quiz 1

A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include the following. $250 for transportation-in. $150 for advertising. $300 for shipping insurance. $1,250 for sales staff salaries. $900 for car import duties. $180 for trimming shrubs.

$1450

Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma looks over her inventory and finds that she has the following. 1,300 units (products) in her basement, 20 of which were damaged by water and cannot be sold. 350 units in her van, ready to deliver per a customer order, terms FOB destination. 80 units out on consignment to a friend who owns a retail store. How many total units should Emma include in her company's period-end inventory?

1710 Units

Days Sales Uncollected

365 x AR / Net Sales

Days Sales in Inventory

365 x Ending Inventory / COGS

Choose from the following list of terms and phrases to best complete the following statements. a.Cash b.Cash equivalents c.Outstanding check d.Liquidity e.Cash over and short f.Voucher system 1.The category includes currency, coins, and deposits in bank accounts. 2.The term refers to a company's ability to pay for its current liabilities. 3.The category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value will not greatly change.

A, D, B

Bank Side

Add deposits in transit Subtract outstanding checks Add or subtract correcting of bank errors

Book Side

Add interest earned and unrecorded cash receipts Subtract bank fees and NSF checks Add or subtract corrections of book errors

Inventory Turnover

COGS / Average Inventory

Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1 through 4. Compute the cost of goods available for sale and the units available for sale for this four-week period. Assume that no sales occur during those four weeks.

Cost of goods- $3180 Units available- 50

FIFO, LIFO, Weighted average layout

Date, Purchase, COGS, Inventory Balance

Identify each of the following statements as either true or false. A. A guideline for safeguarding cash is that all cash receipts be deposited monthly or yearly. B. A voucher system of control is a control system exclusively for cash receipts. C. A guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records. D. Separation of duties eliminates the possibility of collusion to steal an asset and hide the theft from the records.

False, False, True, False

Indicate which statements are true and which are false. 1. Separation of recordkeeping for assets from the custody over assets helps reduce fraud. 2. The primary objective of internal control procedures is to safeguard the business against theft from government agencies. 3. Internal control procedures should be designed to protect assets from waste and theft. 4. Separating the responsibility for a transaction between two or more individuals or departments will not help prevent someone from creating a fictitious invoice and paying the money to himself.

True, False, True, False