1. In a periodic inventory system, the cnst of goods sold is: b. Deteninined by a compuation which is performed at yeaf-end, after the raking of a complet: a. Recorded as sales transactions oceut. c. Equal to the beginning inveniory, plus purchases made during the period, less sales retenue Fof physical inveniory. 4. Deternined by sabtracting the balanee in the Gross Proft account from the amount of ne: the period. sales. e. None of the choices is correct. Use the following information to answer Question 2. 2. What are the missing amounts for (a) and (b)? a. (a): $450, (b) $7,320 b. (a): $7,320, (b) $450 c. (a): $7.270, (b) $6,770 d. (a) $6,770, (b) $7,270 e. None of the choices is correct. 3. In a periodic inventory system, recording a sale on account involves debiting whic following accounts? a. Only Accounts Receivable. b. Accounts Receivable and Inventory. c. Accounts Receivable and Cost of Goods Sold. d. Accounts Receivable, Cost of Goods Sold, and Inventory. e. None of the choices is correct. Aarge shrink ta be an whriormal amouny b. Creaile a contraty-isset account, Invise on the ioconse satement bulance, c. Record the inventory shrinkage like normat shrinkage that oceurs each moeti. d. Recotd Loes from Merchandise Inveniog Shrinkage on the income statemeren. Uise the following information to answer Quettions 5-9. The Boxcwood Compuny selh blankets for $60 coch. The following was taken from the imowantan. 5. Assuming that the company uses the perpetual inventory system, determine the cosi of merchandise sold for the sale of May 20 using the LIFO inventory cost method a. $196 b. $204 c. $240 d. $124 e. None of the choices is correct. 6. Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the average inventory cost method. a. $250 b. $160 c. $200 d. 5204 e. None of the choices is correct. 7. Assuming that the company uses the perpetual inventory systent, determine the cnd ine inventory for the month of May using the FIFO inventory cost method. a. 5264 b. 5502 c. 5400 d. 5790 e. None of the choices is correct. 8. Assuming that the company tises the perpetunl inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. a. 578 b. 590 c. 5102 d. 5180 e. None of the choices is correct. 9. Assuming that the company uses the perpetual inventory system, determine the encing invemtory for the month of May using the LIFO inventory cost method. i., $362 b. $548 c. $520 d. $494 e. None of the choices is correct. Use the following information to answer Questions 10-13: Harding Systems, Inc. uses a periodic inventory system. The purchases of a particular product during the year are showi below: At December 31 the ending inventory consisted of 1,500 units. 10. Compute the cost of the ending inventory based on the LIFO method of inventory valuation. a. $12,500. b. $27,650. c. $10,975 d. $29,175. e. None of the choices is correct. 11. Refer to the above data. Compute the cost of the ending inventory based on the F1FO mathod of inventory valuation. a. $12,500. b. $29,175 c. $10,975 d. $27,650. e. None of the choices is correct. 12. Refer to the above data. Compute the cost of the ending inventory based on the averags-cost method of inventory valuation. (Rounded) a. $10,590. b. $11,700. e. 529,560 . d. $28,450. e. None of the choices is correct. 13. If the cost of an item of inventory is $50 and the current market value is $7, the amount included in inventory according to the lower of cost or market is a. $7 b. $50 c. $57 d. $107 c. None of the choices is correct. 14. When inventory costs are rising, choosing FIFO over LIFO results in a higlicr net incoine before taxes for the current year. a. True b. False 15. An understatement of ending inventory will cause an understatement of net inconie a. True b. False 16. Which of the following is not considered a cash eqaivalent? a. Short-ierta US Treasury bills b. Moncy market funds. c. Restricted cash. d. High-grade short-tern conmerchal paper. e. None of the choices is correct. 17. Kiley Company establistied a petty cash fund of 5750 on January 1. On Januacy 31, rocipts for the following items were in the petty cash box: Entertainment: $250 : Postage: $65 : Maintenance: $120; Office Supplies: $85; Miscellaneous: $55 The joumal entry on January 1 to record estabhtshment of the petty cash fund ircludes a a. Credit to Cash of $750. b. Credit to Petty Cash of $750. c. Debil to Petty Cash Expense of 5750 d. No joumal entry is necessary, since no cash of the company has been disbursed yet e. None of the choices is correct. 18. The custodian of a $450 petty cash fund discovers that the fund has $62 in coins ind currency plus $383 in receipts at the end of the month. The entry to repletish the petty cash fund will include: a. A debit to Cash for $378. b. A debit to Cash Over and Short for $5. c. A debit to Petty Cash for $383. d. A credit to Cash for $383. e. A credit to Cash Over and Short for $5. 19. Under the direct write-off method of accounting for uncollectible accounts, Bal Delvs Expense is debited a. at the end of each accounting period. c. Whenever a pre-determined amount of credit sales have been made. b. when a credit sale is past due. d. when an account is determined to be worthless. e. None of the choices is correct. 20. One of the weaknesses of the direct write-ont method is that it a. understates accounts receivable on the balance sbeet b. violates the maiching principle d. is based on estimates for many companiex e. None of the choices is correct. 21. The Lowery Co. uses the direct write-oft method of accounting for uncollectible acsounts receivable. The entry to write off an aecount that has been detertmined to be uncollectible would be is follows: a. debit Bad Debt Expense; credit Accounts Receivable b. debit Sales Returns and Allowance, credit Accounts Receivable c. debit Bad Debt Expense; credit Allowance for Dotbtful Accounts d. debit Accounts Receivable, credit Bad Debt Expense e. None of the choices is correct. 22. What is the type of account and normal balance of Allowance for Doubtful Accoums" a. Contra asset, credit b. Asset, debit c. Liability, credit d. Contra asset, debit e. Revenue, credit 23. Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 4% of net sales. If net salcs are $600,000, the amount of the adjusting entry to record the provision for doubtful ascounts is a. $24,500 b. $23,500 c. $24,000 d. $24,020 e. None of the choices is correct. 24. Uxinu the estimate bowed on sales method of acceinting for uncoliectible urcounts, the ony to reinsuale a specifie receivable previously writien off would inchide a a. credit to liad Dobt Expense b. credit to Aecounts Receivable c. debit to Allowance for Boubthul Accounts d. debit to Aecounts Receivable e. none of the choices is comect 25. The joumal entry to record a dishonond note includes a debit to Aecounts lteceivabic, 2 credit to Notes Receivable, and a credit to Interest Revenue. a. Truct b. False 26. The depreciation method that does not use residual value in calculating the first ycur? depreciation expense is a. Striight-line method b. whits-of-production method c. double-declining-balance method d. fixed installation method e. none of the choices is correct. 27. An asset is said to be fully depreciated when: a. It is unable to meet its productive demands. b. It is outdated and no longer used. c. Amortization is nearly complete. d. Accumulated depreciation is less than the asset's cost. e. Accumulated depreciation equals the asset's cost. 28. When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry a. debit Accumulated Depreciation; credit Machinery b. debit Machinery; credit Accumulated Depreciation c. debit Cash; credit Accumulated Depreciation d. debit Depreciation Expense; credit Accumulated Depreciation e. none of the choices is correct 29. Machinery acquired new on January 1 it w cost of 350,000 when enitaned wh hewe a wita hich for the seventh year of nithe year of a. $4,000. b. 56,000 d. $10,000 c. none of the choiess is correct. Use the following to answer questions 30 - 31: Bricker Enterprises purchaved a machine for $200,000 on September 30,2020 . The estimated service life is ten years with a 520,000 tesidia? value, Bricker records partial-year depreciation based on the number of moeths if krvice 30. Depreciation expense for 2020 , using double-declining balance, would be a. $10,000. b. $8,000. c. $9,000. d. $40,000. e. none of the choices is correct. 31. Depreciation expense for 2021 , using double-declining balance, would bx: a. $34,000. b. $40,000. c. $32,000. d. $38.000. e. none of the choices is correct. 32. To capitalize an expenditure is to: a. Increase an expense account. b. Decrease an expense account. c. Increase the revenue account. d. Decrease an asset account. e. Increase an asset account. 33. The inclusion of the intangible asset, goodwill in the financial statements of a company indicates: a. That the company has a favorable reputation with its customers. b. A monopoly position in the industry or superior management. c. An unbroken record of annual earnings and dividends. d. That the company has purchased a going business at a price in excess of the fair market value of the net identifiable assets. e. None of the choices is correct