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26) 26) Netherland Corporation has the following unadjusted balances: Accounts Receivable, $80,000 (debit), and Allowance for Sales Discounts $300 (credit). Of the receivables, $50,000 of

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26) 26) Netherland Corporation has the following unadjusted balances: Accounts Receivable, $80,000 (debit), and Allowance for Sales Discounts $300 (credit). Of the receivables, $50,000 of them are within the 2% discount period, and Netherland expects buyers to take $1,000 in future-period discounts ($50,000 x 2%) arising from this period's sales. The adjusting entry or entries to estimate sales discounts is (are): A) 1,000 Sales Discounts Accounts receivable 1,000 80,000 Accounts Receivable Sales 80,000 50,000 50,000 Sales Discounts Sales Cost of Goods Sold Inventory Returns Estimated 1.000 1,000 Sales Discounts Allowance for Sales Discounts 1,000 11,000 E) 700 Sales Discounts Allowance for Sales Discounts 700 27) 27) The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the: A) Going-concern assumption. B) Revenue recognition principle. C) Measurement (Cost) principle. D) Business entity assumption. F\ Time-neriod conmntian 28) Clawback provisions and whistleblower provisions are components of which legislation? A) Dodd-Frank Act. B) Gramm-Leach-Bliley Act. C) Securities Exchange Act. D) Sarbanes-Oxley Act. E) Glass-Steagall Act. 29 29) An example of an investing activity is: A) Cash dividends paid. B) Stockholder investments. C) Selling inventory. D) Paying wages of employees. E) Purchase of land. 30) - 30) On January 1 of the current year, Jimmy's Sandwich Company reported total stockholders' equity of $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year the company paid $20,000 in dividends. No other changes in equity occurred during the year. The change in total equity during the year was: A) An increase of $9,500. B) An increase of $73,500. C) An increase of $30,500. D) A decrease of $9,500. E) A decrease of $30,500. 31) 31) Identify the account below that impacts the equity of a business: A) Accounts Receivable B) Accounts Payable C) Utilities Expense D) Unearned Revenue E) Cash 32) 32) An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n): A) Accrued expense. B) Intangible asset. C) Adjunct account. D) Accrued revenue. E) Contra account

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