11. The major activities of a business include all BUT which of the following? A) Earning activities B) Investing activities C) Operating activities D) Financing activities 12. During the current month, Barnabee wrote a check for $459.25, but recorded it on his books as a credit to Cash in the amount of $452.95. To reconcile the bank statement, he will need to A) Add $6.30 to the balance per the bank statement B) Add $6.30 to the balance per the books C) Subtract $6.30 from the balance per the bank statement D) Subtract $6.30 from the balance per the books 13. Amy Company sold $8,000 of merchandise to Tory Turnbull with terms 2/10, n/30. If Tory paid for three-fourths of the merchandise within the discount period and one-fourth after the discount period, he paid a total of A) $7,840 B) $7,960 C) $7,920 D) $7,880 14. The existing balance in Allowance for Bad Debts is ignored when which estimation method is used? A) Aging method B) Percentage of receivables method C) Percentage of sales method D) All of the above 15. Sales Discounts is which type of account? A) Expense B) Contra-revenue C) Revenue D) Contra-expense 16. Alii Company wrote a check for $990, but recorded it in the accounting records as $909. This error would require an adjustment on the bank reconciliation of A) Deducting $81 from the balance per the books B) Adding $81 to the balance per the books C) Adding $81 to the balance per the bank statement D) Deducting $81 from the balance per the bank statement 17. Based on the aging of its accounts receivable at December 31, Dudikoff Company determined that the net realizable value of the receivables at that date is $760,000. Additional information is as follows: $880,000 Accounts receivable at December 31 Allowance for bad debts at December 31 (unadjusted) 28,000 (cr.) Dudikoff's Bad Debt Expense for the year ended December 31 is A) $80,000 B) $148,000 C) $92,000 D) $28,000