• Corresponds to CLO 6(b)
    The following is a record of Meyer Corporation’s inventory transactions for the current month:

    October 1 Balance, 600 units @ $24 each October 9 Sale, 600 units @ $51
    October 12 Purchase 550 units @ $26 each October 19 Sale, 500 units @ $51
    October 25 Purchase 700 units @ $27 each

    Meyer uses the periodic inventory system. Using the LIFO method, what is the amount of ending inventory on October 31?

  • Question 20 out of 8 points
    Corresponds to CLO 4(d)
    The month-end bank statement for Guthrie Motors shows a balance of $125,000 and a bank service charge of $40. Outstanding checks are $35,000, and a deposit of $11,500 was in transit at month end. The correct balance in the bank account at month end is
  • Question 30 out of 8 points
    Corresponds to CLO 6(d)
    The following is a record of Caulder Corporation’s inventory transactions for the current month:

    March 1 Balance, 500 units @ $40 each March 12 Sale, 200 units @ $85
    March 16 Purchase, 300 units @ $42 each March 22 Sale, 350 units @ $85
    March 28 Purchase, 300 units @ $43 each

    Caulder uses the perpetual inventory system. Using the LIFO method, what is the ending inventory on March 31?

  • Question 40 out of 8 points

    Corresponds to CLO 3(d)
    Swift Builders, Inc. uses the completed-contract method of accounting for a $450,000 contract that it expects will take two years to complete. At December 31, 2013, the end of the first year of the contract, additional information related to the project includes: costs incurred to date were $290,000; estimated costs to complete were $180,000; billings to date were $325,000; collections to date were $300,000. What amount should Swift recognize as gross profit or loss for 2013?

  • Question 50 out of 8 points
    Corresponds to CLO 6(c)
    The following is a record of Tiller Corporation’s inventory transactions for the current month:

    January 1 Balance, 500 units @ $10 each January 5 Sale, 290 units @ $25
    January 11 Purchase 300 units @ $12 each January 13 Sale, 250 units @ $25
    January 23 Purchase 400 units @ $13 each January 27 Sale, 310 units @ $25

    Tiller uses the periodic inventory system. Using the weighted-average inventory method, what is the amount of ending inventory on January 31?

  • Question 60 out of 8 points
    Corresponds to CLO 6(a)
    The following is a record of Axis Corporation’s inventory transactions for the current month:

    June 1 Balance, 300 units @ $65 each June 16 Sale, 400 units @ $90
    June 14 Purchase 800 units @ $68 each June 20 Sale, 500 units @ $90
    June 25 Purchase 250 units @ $70

    Axis uses the periodic inventory system. Using the FIFO method, what is the amount of cost of goods sold for the month?

  • Question 70 out of 8 points

    Corresponds to CLO 3(a)
    When multiple performance obligations exist in a contract, they should be accounted for as a single performance obligation when

  • Question 80 out of 8 points
    Corresponds to CLO 8(a)
    Energy Solutions Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a gross profit rate on sales of 30%. The following information is available:

    Inventory, November 1 $500,000
    Purchases during November $650,000
    Sales during November $900,000

    The estimated cost of inventory at November 30 is

  • Question 90 out of 8 points
    Corresponds to CLO 4(c)
    Which of the following is not classified as cash on the balance sheet?
  • Question 100 out of 8 points
    Corresponds to CLO 1(c)
    Which of the following is not a characteristic of generally accepted accounting principles?
  • Question 110 out of 8 points

    Corresponds to CLO 3(b)
    On June 1, 2014, Vision Corporation consigned 100 TVs, costing $1,000 each, to Future Electronics. The cost of shipping the TVs amounted to $2,500 and was paid by Vision Corporation. On December 31, Future Electronics emailed a report to Vision, indicating that 72 of the TVs had been sold for $1,800 each. Future also included remittance for the amount due, after deducting a commission of 5%, advertising of $500, and installation costs of $1,440. What amount should Vision Corporation include on its December 31, 2014 balance for the consigned TVs?

  • Question 120 out of 8 points
    Corresponds to CLO 7(c)
    Inventories are primarily accounted for at cost on the balance sheet. In a departure from the cost basis, inventory is accounted for at market when
  • Question 130 out of 8 points
    Corresponds to CLO 2(c)
    When a firm reports financial results on an annual basis, which basic assumption is illustrated?
  • Question 140 out of 8 points
    Corresponds to CLO 1(d)
    All of the following are major challenges facing the accounting profession, except?
  • Question 150 out of 8 points
    Corresponds to CLO 2(d)
    The expense recognition principle is best demonstrated by
  • Question 160 out of 8 points
    Corresponds to CLO 7(b)
    Hemmer Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2011. Its inventory at that date was 460,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:

    Date Inventory at Current Prices Current Price Index
    December 31, 2012 $513,600 107
    December 31, 2013 $580,000 125
    December 31, 2014 $650,000 130

    What is the ending inventory at December 31, 2012 under dollar-value LIFO?

  • Question 170 out of 8 points
    Corresponds to CLO 8(b)
    How is the gross profit method used as it relates to inventory valuation?
  • Question 180 out of 8 points
    Corresponds to CLO 2(b)
    If two different companies prepare and present information in a similar manner, the information exhibits the characteristic of
  • Question 190 out of 8 points
    Corresponds to CLO 4(b)
    At December 31, 2013, Vega Vacuum Corporation has cash in bank of 38,500, restricted cash in a separate account of $9,000, and a bank overdraft at another bank of $750. How much should it report as cash on the balance sheet?
  • Question 200 out of 8 points
    Corresponds to CLO 2(a)
    Accounting information that is capable of making a difference in a decision has the fundamental qualitative characteristic of
  • Question 210 out of 8 points
    Corresponds to CLO 5(d)
    At December 31, Norman Industrial Inc. had account balances before year-end adjusting entries for accounts receivable and the related allowance for doubtful accounts of $850,000 and $79,000 respectively. An aging of accounts receivable indicated that $88,000 of December 31, receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is
  • Question 220 out of 8 points
    Corresponds to CLO 1(a)
    Which of the following are considered primary user of general-purpose financial statements?
  • Question 230 out of 8 points
    Corresponds to CLO 5(b)
    As of December 31, William Corporation has outstanding accounts receivable of $5.8 million. Sales on credit during the year were $18.5 million. The allowance for doubtful accounts has a credit balance of $94,000. If the company estimates that 2% of its net credit sales will be uncollectible, what will be the amount of bad debt expense recognized for the year?
  • Question 240 out of 8 points
    Corresponds to CLO 5(a)
    As of December 31, Gammelguard Corporation has outstanding accounts receivable of $1.5 million. Sales on credit during the year were $9 million. The allowance for doubtful accounts has a credit balance of $20,000. If the company estimates that 9% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?
  • Question 250 out of 8 points
    Corresponds to CLO 7(a)
    In the context of dollar-value LIFO, when inventory in base year dollars decreases,
  • Question 260 out of 8 points
    Corresponds to CLO 4(a)
    If Collier Costumes, Inc. has the following items at year-end, how much should it report as cash on the balance sheet?

    Cash in bank $42,600
    Cash on hand $580
    Post-dated checks $1,420
    Certificates of deposit $90,000
  • Question 270 out of 8 points
    Corresponds to CLO 1(b)
    The due process system used by the FASB
  • Question 280 out of 8 points

    Corresponds to CLO 3(c)
    Jot Construction Company uses the percentage-of-completion method of accounting. In 2013, Jot began work on a contract it had received which provided for a contract price of $6,000,000. Additional information related to the project includes: costs incurred during the year were $2,100,000; estimated costs to complete as of December 31, 2013 were $1,400,000. What amount should Jot recognize as gross profit for the project in 2013?

  • Question 290 out of 8 points
    Corresponds to CLO 8(c)
    Arrow Corporation uses the conventional retail inventory method to value its merchandise inventory. The following information is available for the current year:

    Cost Retail
    Beginning Inventory $30,000 $50,000
    Purchases $160,000 $270,000
    Freight-In $2,500 —-
    Net Markups $8,500
    Net Markdowns $10,000
    Employee Discounts $1,000
    Sales $205,000

    What is the cost to retail ratio?

  • Question 300 out of 8 points
    Corresponds to CLO 5(c)
    Kandris Corporation had a balance in accounts receivable of $600,000 and a balance in allowance for doubtful accounts of $55,000, when management decided the account receivable from Dunn Corporation of $2,000 had become uncollectible. What journal entry should Kandris Corporation make to write-off the uncollectible account?
  • Question 310 out of 8 points
    Corresponds to CLO 8(d)
    Capital City Corporation uses the conventional retail inventory method to determine its ending inventory at cost. The following information is available for the current year:

    Cost Retail
    Beginning Inventory $300,000 $420,000
    Purchases $1,450,000 $2,000,000
    Net Markups $80,000
    Net Markdowns $30,000
    Sales $1,900,000

    Capital City determines that the cost-to-retail ratio is 70%. What is the ending inventory at cost?

  • Question 320 out of 8 points
    Corresponds to CLO 7(d)
    If the historical cost of product X is $55, the selling price of product X is $90, the costs to sell product X are $14, the replacement cost for product X is $50, and the normal profit margin is 30% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?