3. If the company's accountant mistakenly recorded an $70 deposit as $109, the error would be shown on the bank reconciliation as a(n):

a. $39 addition to the book balance.

b. $109 addition to the book balance.

c. $109 deduction from the book balance.

d. $39 deduction from the book balance.

5. Selected financial information presented below was obtained from the financial statements of the Napa Valley Brewery:

Current Assets	$	43,000
Property and Equipment, net		63,000
Current Liabilities		46,500
Noncurrent Liabilities		36,500
Stockholders Equity		19,000
Sales Revenue		53,000
Net Income		21,200

What was the net profit margin?

a. 49.00%

b. 89.62%

c. 40.00%

d. 20.00%

9. A companys financial records at the end of the year included the following amounts:

Cash	$	70,300
Accounts Receivable		28,300
Supplies		4,300
Accounts Payable		10,300
Notes Payable		5,150
Retained Earnings, beginning of year		17,300
Common Stock		43,000
Service Revenue		51,050
Wages Expense		8,300
Advertising Expense		5,300
Rent Expense		10,300

What is the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year?

a. $60,300

b. $87,450

c. $27,150

d. $102,900

11. A piece of equipment was acquired on January 1, 2018, at a cost of $48,000, with an estimated residual value of $2,000 and an estimated useful life of eight years. The company uses the double-declining-balance method. What is its book value at December 31, 2019?

a. $27,000

b. $11,500

c. $36,500

d. $12,000

19. A truck costing $12,700, which has Accumulated Depreciation of $9,070, was sold for $2,070 cash. The entry to record this event would include a:

a. credit to the vehicles account for $3,630

b. gain of $1,560

c. loss of $1,560

d. credit to accumulated deprecation for $9,070

21. Litt, Inc. had income before income tax of $165,600 last quarter and a 30% tax rate. What is the company's net income?

a. $(49,680)

b. $49,680

c. $215,280

d. $115,920