1. Skyflora Company has the following: Inventory Jan 01 Purchase, June 19 Purchase, Nov 8 Units 8000 13000 5000 Unit Cost 11 12 13 If Skyflora has 13000 units on hand at December 31, the cost of the ending inventory under FIFO is a. 113000 b.161000 c. 100000 d.137000 2.Foundland Company purchased a piece of equipment on January 1, 2017. The equipment cost $87,000 and has an estimated life of 12 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2018 under the double-declining-balance method? 2.Foundland Company purchased a piece of equipment on January 1, 2017. The equipment cost $87,000 and has an estimated life of 12 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2018 under the double-declining-balance method? (a) $7125 (b) $11,250.3 (c) $12083 (d) $14062.5 3.Dhaka Trucking has an old truck that cost $28,000, and it has accumulated depreciation of $24,000 on this truck. Overland has decided to sell the truck. What would be the gain or loss if Dhaka Trucking make to record the sale of the truck for 9000 cash ? (a) $3000 Profit (b) $5000 Profit () $3000 Loss (d) $6000 Loss 4. Under which of the following reasons bank might send Debit memorendum ? a. Bank service charges b. Direct deposit to bank C. Check printing charges d Both a and c 5. Which of the followin is true about Book Value: (a) Price that we pay at the time of the purchase. (b) Expenditure required to acquire the assets and make ready for use. C) Market price of the assets. (d) Cost less accumulated depreciation. 6. Which of the following is true for depreciable cost ? a. Book value less salvage value b. Book value less accumulated depreciation c. Cost less salvage value d. Cost less accumulated depreciation 7 Which of the following is not correct about the statement of cash flows? (a) It is a fourth basic financial statement (b) It provides information about cash receipts and cash payments of an entity during a period. () It provides information about the operating, investing, and financing activities of the business. (d) It provides information about the operating profitability of the company. 8. Which of the following ratios measure Long-term sustainability of the company ? a. Quick Ratio b. Current ratio C. Debt to equity ratio d. Both a and b 9. Which of the following is true about the assets turnover ratio of the company ? a. It measures both short-termand long term liquidity of the company b. It shows the long-term stability of the company C. It shows how efficiently of using the resources of the company. d. It measures company's ability to collect money from receivables 9. Which of the following is true about the assets turnover ratio of the company ? a. It measures both short - termand long term liquidity of the company b. It shows the long-term stability of the company C. It shows how efficiently of using the resources of the company. d. It measures company's ability to collect money from receivables 10. Which is an example of a cash flow from a financing activity? (a) Receipt of cash from sale of land. (b) Increase of inventory for the period. (c) Purchase of equipment for cash. (d) None of the above
