acct 2010 exam 2

Using the information above; Seaspray's ending inventory using the LIFO method would be: $ 1,450. $ 1,375. $ 1,410. $ 2,590.

$1,375

Accounts Receivable has a debit balance of $ 2,000​, and the Allowance for Uncollectible Accounts has a credit balance of $ 600. A $ 110 account receivable is written off. What is the amount of net receivables​ (net realizable​ value) after the​ write-off? A. $ 1,510 B. $ 1,400 C. $ 1,890 D. $ 1,290

$1,400

Birchwood Corporation began 2018 with a balance in Accounts Receivable of $ 600,000. Service​ revenue, all on​ account, for the year totaled $ 1,600,000. The company ended the year with a balance in Accounts Receivable of $ 775,000. Birchwood​'s ​bad-debt write-offs are nonexistent. How much cash did the company collect from customers in 2018​? A. $ 2,375,000 B. $ 1,600,000 C. $ 1,425,000 D. $ 1,775,000

$1,425,000

Software began January with $ 3,200 of merchandise inventory. During​ January, Waterside made the following entries for its inventory​ transactions: Inventory​ 6,400 Accounts Payable 6,400 Accounts Receivable​ 7,500 Sales Revenue​​ 7,500 Cost of Goods Sold​ 5,800 Inventory​​ 5,800 What was Waterside's gross profit for​ January? ​$ 0 $ 7,500 $ 5,800 $ 1,700

$1,700

Riverwood corporation began 2018 with a balance in Accounts Receivable of $525,000. Service revenue, all on account, for the year totaled $2,200,000. The company ended the year with a balance in Accounts Receivable of $750,000. Riverwood's bad-debit write-offs are nonexistent. how much cash did the company collect from customers in 2018? -$2,950,000 -$2,425,000 -$1,975,000 -$2,200,000

$1,975,000 ($525,000+$2,200,000-$750,000)

The following data come from the inventory records of Dapper ​Company: Net sales revenue $626,000 Beginning inventory 62,000 Ending inventory 44,000 Cost of Goods Sold 488,000 Based on these​ facts, the gross profit for Dapper Company is $ 138,000 $ 128,000 $ 130,000 $ 156,000

$138,000

Use the following data of Matrel ​Company: Unit Total Units Cost Cost Beginning inventory 24 $ 130 $ 3,120 Purchase on July 3 31 $ 135 $ 4,185 Sales 40 ? ? Matrel​'s ending inventory using the FIFO method would​ be: $ 1,950. $ 2,025. $ 7,305. $ 5,280.

$2,025

Company had the following information in 2018​: Accounts receivable 12/31/18 $14,000 Allowance for uncollectible-accounts credit balance12/31/18 (before adjustment) 750 Credit service revenue during 2018 35,000 Cash service revenue during 2018 15,000 Collections from customers on account during 2018 44,000 Uncollectible account expense for 2018 is $ 1,415. What is the adjusted balance in the Allowance account at​ year-end for 2018​? A. $ 1,415 B. $ 1,400 C. ​$750 D. $ 2,165

$2,165

What is the maturity value of a $ 20,000​, 12​%, ​six-month note? A. $ 20,000 B. $ 21,200 C. $ 22,400 D. $ 18,800

$21,200

Picture perfect frame shop wants to know the effect of different inventory costing methods on its financial statements. inventory and purchases data for June are: (2,300 units at $12 & 1,200 units at $12.40 (1,400 sale)) if picture perfect frame shop uses the FIFO Method, the cost of the ending inventory will be -$17,100 -$14,880 -$25,680 -$16,800

$25,680 (2300-1400=900) (900x$12 + 1200x$12.40)

Using the information above; If Leading Edge Frame Shop uses the LIFO​ method, cost of goods sold will be

$33,250

The income statement for Happy Foods shows gross profit of $150,000​, operating expenses of $128,000​, and cost of goods sold of $212,000. What is the amount of net sales​ revenue? $ 340,000 $ 278,000 $ 362,000 $ 490,000

$362,000

On August​ 1, 2018​, Lotore​, ​Inc., sold equipment and accepted a​ six-month, 9​%, $ 10,000 note receivable. Lotore's ​year-end is December 31. How much interest revenue should Lotore accrue on December​ 31, 2018​? A. $ 375 B. $ 900 C. $ 450 D. $ 925

$375

The Cash account of Reese Corporation had a balance of $3,540 at October 31, 2018. Included were outstanding checks totaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement. The bank statement, which came from Turnstone State Bank, listen an October 31 balance of $5,570. Included in the bank balance was an October 30 collection of $600 on account from a customer who pays the bank directly. The bank statement also showed a $30 service charge, $10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50. Prepare a bank reconciliation to determine how much cash Reese actually had at Oct. 31.

$4,070

Software began January with $ 3,300 of merchandise inventory. During​ January, Waterside made the following entries for its inventory​ transactions: Inventory 6,200 Accounts Payable 6,200 Accounts Receivable 7,100 Sales Revenue 7,100 Cost of Goods Sold 5,400 Inventory 5,400 How much was Waterside's inventory at the end of​ January? A. $ 9,500 B. $ 4,100 C. $ 6,200 D. ​$ 0

$4,100

Linus Company uses the​ percent-of-sales method to estimate uncollectible. Net credit sales for the current year amount to $ 110,000​, and management estimates 4​% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 3,000. The amount of expense to report on the income statement will be A. $ 6,600. B. $ 7,400. C. $ 4,400. D. $ 1,500.

$4,400

Leading Edge Frame Shop wants to know the effect of different inventory costing methods on its financial statements. Inventory and purchases data for June ​are: Units Unit Cost Total Cost June 1 Beginning Inventory 2,400 $18.00 $43,200 4 Purchase 1700 $18.50 $31,450 9 Sale 1800 If Leading Edge Frame Shop uses the FIFO​ method, the cost of the ending inventory will be $ 42,250. $ 31,450. $ 32,400. $ 32,700.

$42,250

using the following data of Draker Company (20 units at $110, 30 units at $125 (45 sold)) Draker's cost of goods sold using the average-cost method would be -$5,355 -$5,950 -$4,950 -$595

$5,355 (total value/total units) (5950/50=119) (119x45=5,355)

Use the following data of Seaside ​Company: Unit Total Units Cost Cost Beginning inventory 15 $ 110 $ 1,650 Purchase on July 3 35 $ 130 $ 4,550 Sales 45 ? ? Seaside​'s cost of goods sold using the​ average-cost method would​ be: $ 6,200. $ 4,950. $ 620. $ 5,580.

$5,580

Use the following data of Seaspray ​Company: Unit Total Units Cost Cost Beginning inventory 18 $ 125 $ 2,250 Purchase on July 3 43 $ 130 $ 5,590 Sales 50 ? ? Seaspray​'s cost of goods sold using the LIFO method would​ be: $ 6,450. $ 6,465. $ 6,410. $ 5,590.

$6,465

Coral Hill Associaton performs legal services for Archer Construction for $7,000 on account with credit terms of 1/10, n/30. If Archer pays the invoice within the discount period, Coral Hill will record a debit to cash in the amount of -$7,000 -$70 -$6,930 -$7,070

$6,930

Using the information above; Seaside's ending inventory using the average-cost method would be: $ 6,200. $ 4,950. $ 620. $ 5,580.

$620

Milo Company uses the percent-of-sales method to estimate and collectibles. Net credit sales for the current year amount to $150,000, and management estimates 4% will be uncollectible. The amount of expense report on the income statement was $6000. The allowance for uncollectible accounts prior to adjustment has a credit balance of $2000. The balance of allowance for uncollectible accounts, after adjustments, will be -$7,500 -$6,000 -$8,000 -$1,000

$8,000 ($150,000x4% + $2,000)

Winter Park Legal Association performs legal services for Rowland Construction for $ 1,000 on account with credit terms of 1​/10, ​n/30. If Rowland pays the invoice within the discount​ period, Winter Park will record a debit to Cash in the amount​ of: A. $ 990 B. $ 1000 C. $ 10 D. $ 1,010

$990

From the following list of accounts calculate the quick ratio. Cash. . . . . . . . . . . . . . . . . . . . . . . $4,000 Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000 Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . 6,000 Salary payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Inventory. . . . . . . . . . . . . . . . . . . . . . . 10,000 Notes payable (due in two years). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000 Prepaid insurance. . . . . . . . . . . . . . . . . . . . . . . 3,000 Short-term investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 ​ A. 0.7 B. 0.8 C. 1.4 D. 0.9

0.7

Corporation reported the following​ data: Ending inventory. . . . . . . . . ......... . .42,000 Purchases. . . . . . . . . . . . . . . . . . . . . . .224,600 Beginning inventory. . . . . . . .. . . . . . . . . . .52,000 Sales revenue. . . . . . . . . . . . . . . . . . . . . . .300,000 Tulsa​'s gross profit percentage is ​(Round your answer to one decimal​ place, X.X%.) 21.8. 82.9. 20.8. 78.2.

21.8

Using the information above what is the gross profit percentage (Round your answer to one decimal place, X.X%.) 41.44 58.56 41.0 24.33

41.44

Corporation had beginning inventory of $ 26,000 and ending inventory of $ 29,000. Its net sales were $149,000 and net purchases were $ 71,000. Cost of goods sold for the period was $ 68,000. What is Flag​'s gross profit percentage​ (rounded to the nearest whole​ percentage)? 52​% 50​%. 54​% 46​%

54%

set an corporation received a four-month 9%, $2,000 note receivable on March 1. The adjusting entry on March 31 will include -A credit to interest revenue for $15 -A debit to interest receivable for $180 -A debit to cash for $180 -A debit to interest receivable for $60 -A debit to interest receivable for $60

A credit to interest revenue for $15

Washington Products offers credit terms of​ 3/10, n/45. Which of the following statements is​ correct?

A discount of 3% can be taken if the invoice is paid within 10 days of the invoice date

Which of the following statements is​ true? A. Collections on account decrease receivables. B. ​Write-offs of accounts decrease receivables. C. Credit sales increase receivables. D. All of these statements are true.

D

A doctor for the Benson family practice performs a sports physical exam for Allison Smythe on February 1. The charge for the exam is $100; Smythe's Insurance Company, Cardinal Health, Is billed for the entire $100 on February 1. Cardinal Health received the invoice on February 2, and enter the amount into its payment system on February 4. Benson family practice received the $100 payment from Cardinal Health on February 20. On which date would Benton family practice recognize the revenue for the Smythe's physical? -Feb 4 -Feb 1 -Feb 2 -Feb 20

Feb 1

fictitious accounting entries are recorded that cause revenue to be overstated by $5 million for the year; The accounting manager was trying to make the companies income look better on the companies upcoming loan application. This type of fraud is -asset misappropriation -fraudulent financial reporting -IFRS misalignment -GAAP disordering

Fraudulent financial reporting

in a period of rising prices, -LIFO inventory will be greater than FIFO inventory -Gross profit under FIFO Will be higher than under LIFO -cost of goods sold under LIFO Will be less than under FIFO -net income under LIFO Will be higher than under FIFO

Gross profit under FIFO Will be higher than under LIFO

which law or regulation requires that public companies must maintain strong internal control systems?

Sarbanes-Oxley act

which of the following is an example of poor internal control in an organization?

The mail room clerk records daily cash receipts in the journal

when does the cost of inventory become an expense?

When inventory is delivered to a customer

which of the following statements regarding contracts is incorrect?

a contract must be written to be valid

in a bank reconciliation, interest revenue earned on your bank balance is -deducted from the bank balance -deducted from the book balance -added to the bank balance -added to the book balance

added to the book balance

which of the following are examples of The misappropriation of assets? -and employee over states an expense reimbursement request after a company trip -A kickback scheme in the purchasing function -an employee theft of inventory -all of the above

an employee theft of inventory

how was the cost of goods sold classified in the financial statements?

as an expense

On March​ 15, Maxwell Plush sold and shipped merchandise on account for​ $6,000 to Kittson Amusement​ Park, terms FOB shipping​ point, n/30.​ Maxwell's cost of goods sold is​ 40% of sales. How is Maxwell impacted by this sale on March​ 15?

assets will increase, equity will increase

If the adjusting entry to accrue interest on a note receivable is​ omitted, then A. liabilities are​ understated, net income is​ overstated, and​ stockholders' equity is overstated. B. ​assets, net​ income, and​ stockholders' equity are overstated. C. ​assets, net​ income, and​ stockholders' equity are understated. D. assets are​ overstated, net income is​ understated, and​ stockholders' equity is understated.

assets, net income, and stockholder's equity are understated

A journal entry would need to be made for which of the following adjustments on a bank reconciliation?

bank service charges

when preparing a break reconciliation, which of the following items should be added to the book balance? -deposits in transit -Collection of note receivable by bank -EFT receipts -both EFT Receipts and collection of a note receivable by the bank

both EFT receipts and collection of a note receivable by the bank

each of the following represents an internal control procedure except for

clear lines of authority and communication

having a corporate code of ethics that prohibits employers from excepting gifts from customers or vendors is an example of which component of internal control?

control environment

Carey Corporation received a​ four-month 9​%, $ 2,800 note receivable on March 1. The adjusting entry on March 31 will include A. a credit to Interest Revenue for $ 21. B. a debit to Interest Receivable for $ 84. C. a debit to Cash for $ 252. D. a debit to Interest Receivable for $ 252.

credit interest revenue for $21

In a bank reconciliation, an outstanding check is -deducted from the bank balance -deducted from the book balance -added to the book balance -added to the bank balance

deducted from the bank balance

how is cost of goods sold classified in the financial statements? -liability -expense -revenue -asset

expense

as part of a strong internal control system, which of the following accounting duties need to be separated from Cash handling?

filing and transaction approval

Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be part of the cost of the candleholders inventory?

freight in

each of the following documents is a control for a bank account except

geographical location of ATMs

In a period of rising​ prices,

gross profits under FIFO will be higher than under LIFO

A bank reconciliation included an outstanding check of $850 for the payment of salaries. The journal entry to record this reconciling item: -should debit accounts payable and credit cash for $850 -should debit cash and credit salaries expense for $850 -should debit salaries expense and credit cash for $850 -is not required

is not required

which of the following items is not true about fraud?

it's damages must exceed the threshold of $150,000

On August​ 1, 2018​, Avonette​, ​Inc., sold equipment and accepted a​ six-month, 9​%, $50,000 note receivable. Avonette​'s ​year-end is December 31. If Avonette fails to make an adjusting entry for the accrued interest on December​ 31, 2018​, A. net income will be understated, and liabilities will be overstated. B. net income will be understated, and assets will be understated. C. net income will be overstated, and assets will be overstated. D. net income will be overstated, and liabilities will be understated.

net income will be understated, assets will be understated

if a bank reconciliation include a deposit in transit at $790, the entry to record this reconciling item would include a

no entry is required

all of these make up the fraud triangle except?

planning

companies make most payments by check or EFT wire due to which reason

provide record of payment, must be signed by an authorized official and payment supported by evidence

requirement that an employee with no access to cash do the accounting is an example of which characteristic of internal control

separation of duties

all of the following are controls for cash received over the counter except

the salesclerk must have access to the cash register tape

which of the following is an example of misappropriation of assets?

unemployed takes a bride from a contractor to ensure they get the company's business