30. Which one of the fixed asset accounts listed below will not have a related contra asset account? a. Office Equipment b. Land c. Delivery Equipment Building 31. The income statensent should be prepared a. before the retained earnings statement and balance sheet b. after the retained earnings statement and before the balance sheet c after the retained earnings statement and balance sheet d. after the balance sheet and before the retained earmings statemen 32. Which of the following account groups are nominal accounts a. Cash, Dividends, Wages Payable b. Prepaid Insurance, Equipment, Fees Earmed Common Stock, Dividends, Income Summary d. Rent Revenue, Fees Earned, Miscellaneous Expense 33. The income statement will present a. revenues less expenses (ordered largest to smallest amount) with miscellancous expense listed last b. revenues less expenses (ordered smallest to largest amounts) with miscellancous expense listed last c. revenucs less expenses (ordered in alphabetical order) d. revenues less expenses (order is not important) 34. On which financial statement will Income Summary be shown? a. retained earnings statement b balance sheet c income statement d. no financial statement 35. Which of the following is not an essential part of the accounting records? a. the journal b. the ledger c. the chart of accounts d. the end-of-period spreadsheet 36. Debts listed as current liabilities are those that a. will be paid in less than one year c. are due to be paid in more than one year d are owed to the stockholders and will never be paid 37. Prepaid insurance is reported on the balance sheet as a na asso b. fixed asset c. curent liability d. ong-term liability 38. Notes receivable due in 390 days appear on the 8Notes receivable due in 390 days income statement snespense balance sheet n the curent liabilities section balance sheet in the current assets section d balance sheet in the noncurrent assets section 39 The entry to adjust for the cost of supplies used during the ccounting period is debit Supplies Expense; credit Supplies debi Accounts Payable, crodit Suplis a debit Stockholders Equity, credit Supplies d debit Supplies credit Stockholdes 0. The dilerence between the balance of a fixed asset accou and the related accumulated depreciation account is termed historical cost c book value d market valluc 1Inventory is classified on the balance sheet as a current liability b current assct long-erm asset d long-term liability 42. What is the term applied to the excess of sales over the cost of goods sold gross profit b operations net income d gross sales 43. Calculade the ross profit for Jeflenson Company based on the following Sales $764,000 Selling expenses 42,500 Cost of goods sold 538,000 $495,500 b S183 500 $721 500 5226,000 4. The primary difference between the periodic and perpetual inventory systems is thata periodic system determines the inventory on hand only at the end of the accounting period bperiodic system keeps a recond showing the nventory on hand at all times cperiodic system provides an easy means t determine inventory shrinkage d periodic systiom records the cost of the sale on the date the sale is made 45, which ofthe follow8 accounts has a normal debit balance? Aco 45 Which of t mal debit balance? a. Accounts Payable boventory Sales d nerest Revenue 46 Merchandise is ordered on November 10; the merchandise is hipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 13, the merchandise is received by the buyer on November 18, the entry is made in the buyer's accounts on November 20. The credit period begins with what date? a November 10 bNovember 13 November 18 d November 20 47.If merchandise sold on account is returned to the seller, the seller acknowlodges the return by issaing a a. sales invoice purchase inveice credit memo debit memo 48 Merchandise sabject to terms 2/10, 30, FOB shipping point, is sold on account to a customer for $25,000. What is the amount of sales discount allowable? a $260 b S500 5460 d. S150 49. Sales to customers who use bank credit cards, such as MasterCard and Visa, are gencrally treated as a sales on accoun b sales return c cash sales dsales when the credit card company remits the cash 0 When a buyer retuns menchandise purchased for cash, the buyer will rocoed the transaction as a debit to Investory; a credit to Cash debit to Cash; a credit to Investory debit so Cashc a credit to Sales d debit to Sales; a credit to Accounts Payable 1. In reconding the cost of goods sold for cash, based on data available from perpetual inventory records, the journal entry is a debit Cost of Goods Sold, credit Sales b. debit Cest of Goods Sold, credit Inventory c deit Inventory credit Cest of Goods Sold ebit Accounts Receivable, crodit Investory 2. If the buyer is to pay the froighs costs of delivering mechandise, delivery tens are stated as FOB shipping point FOB destination d FOBs buyer 58. What is the of the year am using the FIFO method? a. $1,685 b $1,575 . S1,805 d. $3,58S 59. What is the amount of the inventory at the end of the year using the LIFO method? b. $1,575 d. $3,815 $1,685 $1,805 60. If Beginning Inventory (BI)+Purchases (P)-Ending Inventory (ED -Cost of Goods Sold (COGS), an equivalent equation can be written as a. B+P-COGS-E b BI-P-COGS+E d. EI+P-COGS-B 61. Which of the following companies would be more likely to use the specific identification inventory costing method? a Gordon's Jewelers b Lowes c Best Buy d Walmart 62. Which document authorizes the purchase of the inventory from an approved vendor a. the purchase order b the petty cash voucher c the receiving report d. the vendor's invoice 63. Which of the following accounts has a nomal credit a. Accounts Receivable b. Sales Merchandise Inventory d. Delivery Expense 64. If the cost of an itom of inventory is S60 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market is S1S . 560 $75 d $135 65. Which one of the following is not a factor that influences business's control environment? mangemenit's philosophy and operating style b organizational structure c proofs and security measures d. personnel policics 66. The objectives of internal control are to