Question 1 Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement.
Question 2 Bolton Company’s gross profit rate last year was 32.0% and this year it is 28.4%. Which of the following would not be a possible cause for this decline in the gross profit rate?
Question 3 The amount of cost of good available for sale during the year depends on the amounts of
Question 4 The Sales Returns and Allowances account does not provide information to management about
Question 5 Stan’s Market recorded the following events involving a recent purchase of merchandise:As a result of these events, the company’s merchandise inventory
Question 6 Gross profit equals the difference between sales and
Question 7 A company using a perpetual inventory system that returns goods previously purchased on credit would
Question 8 The collection of a $900 account beyond the 2 percent discount period will result in a
Question 9 Expenses that are associated with sales are classified as
Question 10 Income from operations is gross profit less
Question 11 Goods held on consignment are
Question 12 If companies have identical inventoriable costs but use different inventory flow assumptions when the price of goods have not been constant, then the
Question 13 An assumption about cost flow is necessary
Question 14 Noise Makers Inc has the following inventory data:A physical count of merchandise inventory on July 30 reveals that there are 30 units on hand. Using the average cost method, the value of ending inventory is
Question 15 Which statement is false?
Question 16 Dole Industries had the following inventory transactions occur during 2010:The company sold 153 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars)
Question 17 A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are
Question 18 Grape Gratuities Company has the following inventory data:A physical count of merchandise inventory on July 30 reveals that there are 35 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is
Question 19 Johnson Company has a high inventory turnover that has increased over the last year. All of the following statements are true regarding this situation except Johnson County:
Question 20 Use the following information regarding Black Company and Red Company to answer the question “Which amount is equal to Black Company’s “days in inventory” for 2010 (to the closest decimal place)?”
Question 21 Barber Company lends Monroe Company $20,000 on April 1, accepting a four-month, 6% interest note. Barber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?
Question 22 Kinsler Company uses the percentage of receivables method for recording bad debts expense. The Accounts Receivable balance is $200,000 and credit sales are $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Kinsler Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
Question 23 An aging of a company’s accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require a
Question 24 Which one of the following is not an accounting problem (issue) associated with accounts receivable?
Question 25 During 2010 Wheeler Inc. had sales on account of $396,000, cash sales of $162,000, and collections on account of $252,000. In addition, they collected $4,350 which had been written off as uncollectible in 2009. As a result of these transactions the change in the accounts receivable indicates a
Question 26 Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $10,000. If the balance of the Allowance for Doubtful Accounts is $2,000 debit before adjustment what is the balance after adjustment?
Question 27 Doane Company receives a $5,000, 3-month, 6% promissory note from Ray Company in settlement of an open accounts receivable. What entry will Doane Company make upon receiving the note?
Question 28 If the amount of uncollectible account expense is understated at year end
Question 29 On April 5 Donna’s Boutique accepted a Visa card for a $400 purchase. Visa charges a 2% service fee. The entry to record this transaction would include a
Question 30 The maturity value of a $20,000, 12%, 3-month note receivable is
