#1

Beginning inventory plus purchases equals:

a) cost of goods sold

b) goods available for sale

c) net purchases

d) ending inventory

#2

Accounts receivable:

a) arise from the purchase of goods or services on credit

b) are amounts owed to a business by its customers.

c) are reported on the income statement.

d) will be collected within the discount period or when due.

#3

A perpetual inventory system will always give updated balances for:

a) goods available for sale and sales revenue

b) inventory and cost of goods sold

c) accounts receivable and inventory

d) Inventory and sales revenue

#4

What is the primary goal of internal controls for cash payments?

a)		To make payments as quickly as possible
b)		To ensure that payments are made only for properly authorized transactions
c)		To independently verify cash payments
d)		To ensure the lowest prices possible are paid Mason Company gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation: Ending cash balance per books, 10/31$3,500 Deposits in transit150 Interest received from bank850 Bank service charge for check printing30 Outstanding checks2,000 NSF check of T. Owens175