1 4 pts 100) Which of the following would NOT represent good controls over cash receipts? OD) Verify cash receipts by comparing the bank deposit slip with the accounting records. OA) Record all cash receipts as soon as possible. C) Open mail each day and make a list of checks received with the amount and payer's name. O B) The employee that receives cash and checks should also deposit them in the bank. Question 2 96) Cash equivalents refer to: 4 pts OC) Short-term investments that have increased in value since the date of purchase, and therefore have generated additional cash for the company. A) Short-term investments that have a maturity date no longer than three months from the date of purchase. OD) The total amount of cash a company would have if all assets were sold. OB) Amounts receivable from customers that have a very high probability of collection. Question 3 4 pts 132) On May 1, a company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, the company pays for this inventory and records which of the following using a perpetual inventory system? 1. Accounts Payable Cash 2,000 2. Accounts Payable 1,960 Inventory 40 Cash 3. Accounts Payable 2,000 Inventory Cash 4. Cash Accounts Payable 2,000 2,000 2,000 40 1,960 2,000 following using a perpetual inventory system? 1. Accounts Payable 2,000 Cash 2. Accounts Payable 1,960 Inventory 40 Cash 3. Accounts Payable 2,000 Inventory Cash 4. Cash OB OA Accounts Payable 2,000 2,000 2,000 40 1,960 2,000 Question 4 4 pts 107) During its first year of operations, a company has credit sales of $250,000 and cash sales of $100,000. By the end of the year, cash collections on credit sales total $180,000, and the company estimates uncollectible accounts to be 6% of accounts receivable. The amount to record for the year-end adjusting entry for uncollectible accounts would be: OC) $6,000 OB) $4,200. OD) $10,200. OA) $15,000. Question 5 134) In a perpetual inventory system, the purchase of inventory is debited to: A) Purchases. B) Cost of Goods Sold. C) Inventory. D) Accounts Payable. O C) Inventory. OA) Purchases. OD) Accounts Payable. B) Cost of Goods Sold. 4 pts Question 6 4 pts 94) The balance of cash reported in the balance sheet would include which of the following? A) Balance of savings account. C) Currency. OD) All of the other answers would be reported in the balance of cash. OB) Credit card sales. Question 7 4 pts 64) The primary distinction between operating activities and nonoperating activities in a multiple-step income statement is whether the activity is: OA) A large or small dollar amount. D) Reported as a revenue or an expense. C) Related to current versus long-term assets. OB) Part of primary business operations. D Question 8 85) The following information relates to inventory for Shoeless Joe Inc. Date 4 pts Quantity Price Beginning March 1 20 $ 2 Inventory March 7 Purchase 15 3 March 11 Sale 30 7 March 12 Purchase 15 At what amount would Shoeless report cost of goods sold using the weighted-average cost flow assumption? 73 105 70 110 Question 9 4 pts 136) A company sold inventory for $1,200 that was purchased for $700. The company records which of the following when it sells the inventory using a perpetual inventory system? OD) Debit Inventory $700; credit Cost of Goods Sold $700. B) Debit Cost of Goods Sold $700; credit Inventory $700. OA) No entry is required for cost of goods sold and inventory. OC) Debit Cost of Goods Sold $1,200; credit Inventory $1,200. D Question 10 4 pts 87) Inventory records for Dunbar Incorporated revealed the following: Number Unit Date Transaction of Units Cost Beginning Apr. 1 500 $ 2.40 Inventory Apr. 20 Purchase 400 2.50 Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be: OB) $1,700. OA) $1,730. OC) $1,720. OD) $1,710. Question 11 4 pts 105) McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor $200 for services provided, McGregor would: D) Credit Service Revenue for $206. OC) Debit Service Fee Expense for $6. OA) Debit Cash for $200. OB) Credit Service Revenue for $194. Question 12 4 pts 57) A company provides services on account. Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues. B) (1) No effect, (2) Increase (3) Increase OD) (1) No effect, (2) No effect (3) No effect OC) (1) Increase, (2) Increase (3) Increase OA) (1) Increase, (2) No effect (3) Increase Question 13 4 pts 131) On May 1, a company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 18, the company pays for this inventory and records which of the following using a perpetual inventory system? 1. Accounts Payable 2,000 Cash 2. Accounts Payable 1,960 Inventory Cash 40 3. Accounts Payable 2,000 Inventory Cash 4. Cash Accounts Payable 2,000 2,000 2,000 40 1,960 2,000 1. Accounts Payable 2,000 Cash 2. Accounts Payable 1.960 Inventory Cash 40 3. Accounts Payable 2,000 4. Cash OA OB Inventory Cash Accounts Payable 2,000 2,000 2,000 40 1,960 2,000 Question 14 4 pts 86) Inventory records for Dunbar Incorporated revealed the following: Number Unit Date Transaction of Units Cost Beginning Apr. 1 500 $ 2.40 Inventory Apr. 20 Purchase 400 2.50 Dunbar sold 700 units of inventory during the month. Ending inventory assuming FIFO would be: 470 500 490 480 Question 15 4 pts 88) Inventory records for Dunbar Incorporated revealed the following: Number Unit Date Transaction of Units Cost Beginning Apr. 1 500 $ 2.40 Inventory Apr. 20 Purchase 400 2.50 Dunbar sold 700 units of inventory during the month. Ending inventory assuming LIFO would be: 480 O 470 490 O 500 Question 16 4 pts 74) On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, n/30. The customer made the correct payment on November 17. How would Flores record the collection of cash on November 17? A. Cash Accounts Receivable B. Cash Sales Discounts Accounts Receivable C. Cash Sales Revenue Accounts Receivable D. Cash Accounts Receivable 7,840 7,840 160 7,840 160 8,000 7,840 8,000 8,000 8,000 A. Cash Accounts Receivable B. Cash Sales Discounts Accounts Receivable C. Cash Sales Revenue Accounts Receivable D. Cash OA. B O O D Accounts Receivable 7,840 7,840 160 7,840 160 8,000 7,840 8,000 8,000 8,000 Question 17 74) Consider the following year-end information for a company: 4 pts Cost of goods sold $ 420.000 Sales revenue 800,000 Nonoperating expenses 10,000 Operating expenses 170,000 Income tax expense 80,000 What amount will the company report for operating income? D) $120,000. B) $210,000. O A) $200,000. C) $380,000. Question 18 4 pts 65) Which of the following items are classified as receivables? A) Tax refund claims. B) Amounts owed by customers. C) Amounts loaned and expected to be collected. D) All of the other answers are classified as receivables. OA) Tax refund claims. C) Amounts loaned and expected to be collected. OD) All of the other answers are classified as receivables. OB) Amounts owed by customers. Question 19 4 pts 137) Using a perpetual inventory system, how should a company record the sale of inventory costing $620 for $960 on account? 1. Inventory Cost of Goods Sold Sales Revenue Accounts Receivable 620 960 2. Accounts Receivable 960 Sales Revenue Cost of Goods Sold 620 Inventory 3. Inventory Gain Sales Revenue 620 340 010 620 960 960 620 960 Accounts Receivable 2. Accounts Receivable 960 Sales Revenue Cost of Goods Sold 620 Inventory 3. Inventory Gain Sales Revenue 620 340 4. Accounts Receivable 960 Sales Revenues 4 02 Gain 960 960 620 960 620 340 Question 20 4 pts 70) On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15? A. Cash Accounts Receivable B. Cash Accounts Receivable C. Cash Sales Discounts Accounts Receivable D. Cash Sales Discounts 60,000 58,800 58,800 1,200 60,000 60,000 58,800 60,000 1,200 Sales Revenue 58,800 Accounts Receivable B. Cash Accounts Receivable C. Cash Sales Discounts Accounts Receivable D. Cash OB OA D Sales Discounts 58,800 58,800 1,200 60,000 58,800 60,000 60,000 1,200 Sales Revenue 58,800 Question 21 4 pts 67) Barton Health Services provided care to a patient worth $1,200. Because the patient was over the age of 65, Barton granted the patient a 20% discount and the customer paid the correct amount in cash. How would Barton record the service transaction? A. Cash Service Revenue B. Cash Trade Discount Service Revenue C. Cash Service Revenue D. Cash Trade Discount 960 960 240 1,200 1,200 960 1,200 1,200 240 Service Revenue 960 A. Cash Service Revenue B. Cash Trade Discount Service Revenue C. Cash D. Cash OA. OB Service Revenue Trade Discount 960 960 240 1,200 1,200 960 1,200 1,200 240 Service Revenue 960 Question 22 4 pts 126) Using a perpetual inventory system, the sale of inventory on account is recorded with a: D) All of the other answers are recorded with the sale of inventory on account. C) Credit to Sales Revenue. B) Credit to Inventory. OA) Debit to Cost of Goods Sold. Question 23 4 pts 61) Identify the likely advantage of extending credit to customers. OB) Increased sales. D) Fewer expenses. C) Reduced amounts owed to creditors. A) Lower accounts receivable. Question 24 4 pts 60) Beginning inventory is $30,000. Purchases of inventory during the year are $50,000. Cost of goods sold is $60,000. What is ending inventory? OC) $10,000. OA) $20,000. B) $30,000. OD) $50,000. Question 25 4 pts 112) Lail Inc. accounts for bad debts using the allowance method. On June 1, Lail Inc. wrote off Andrew Green's $2,500 account. Based on Lail's estimation, Andrew Green will never pay any portion of the balance in his account. What effect will this write-off have on Lail Inc.'s balance sheet at the time of the write-off? OD) A decrease to assets and a decrease to stockholders' equity O None of the above. OA) An increase to stockholders' equity and a decrease to liabilities. OC) An increase to assets and an increase to stockholders' equity