44. Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:

Date Purchases Sales Jan. 14 375 @ $14 17 250 @ $10 25 250 @ $11 29 260 @ $16

Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31.

The cost of the inventory at January 31, under the LIFO method is: a. $3,285. b. $3,525. c. $4,015. d. $3,900.

46. Green Company's records indicate the following information for the year: Merchandise inventory, 1/1 $ 400,000 Purchases 2,500,000 Net sales 4,000,000 On December 31, a physical inventory determined that ending inventory of $450,000 was in the warehouse. Green's gross profit on sales has remained constant at 40%. Green suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory? a. $40,000 b. $50,000 c. $75,000 d. $100,000

42. Inventory is

a. reported under the classification of Property, Plant, and Equipment on the balance sheet. b. reported as a current asset on the balance sheet. c. often reported as a miscellaneous expense on the income statement. d. generally valued at the price for which the goods can be sold.

2. Generally accepted accounting principles are a. theories that are based on physical laws of the universe. b. income tax regulations of the Internal Revenue Service. c. standards that indicate how to report economic events. d. principles that have been proven correct by academic researchers.

3. The historical cost principle requires that when assets are acquired, they be recorded at a. appraisal value. b. book value. c. cost. d. market price.

4. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets = Liabilities + Stockholders' Equity. b. Assets Liabilities = Stockholders' Equity. d. All of these answers are correct.

5. Revenues would not result from a. sale of merchandise. b. issuance of common stock. c. performance of services. d. rental of property.

6. If total assets equal $500,000 and total stockholders' equity equal $350,000, then total liabilities must equal a. $485,000. b. $150,000. c. $205,000. d. There is not enough information given to determine this.

7. The accounting equation for Brown Enterprises is as follows: Assets Liabilities Stockholders' Equity $150,000 = $40,000 + $110,000 If Quattro purchases computer on account for $10,000, the accounting equation will change to Assets Liabilties Stockholders' Equity a. $120,000 = $60,000 + $60,000 b. $145,000 = $60,000 + $85,000 c. $160,000 = $50,000 + $110,000 d. $145,000 = $85,000 + $60,000

8. Collection of a $3,000 Accounts Receivable a. increases an asset $3,000; decreases an asset $3,000. b. decreases a liability $3,000; increases stockholders' equity $3,000. c. increases an asset $3,000; decreases a liability $3,000. d. decreases an asset $3,000; decreases a liability $3,000.

9. Greens Computer Repair Shop started the year with total assets of $400,000 and total liabilities of $125,000. During the year, the business recorded $350,000 in computer repair revenues, $225,000 in expenses, and Green Co. paid dividends of $50,000. Stockholders' equity at the end of the year was a. $150,000. b. $200,000. c. $250,000. d. $350,000.