66. A business purchases equipment by paying $6,081 in cash and issuing a note payable of $12,291. Which of the following occurs?

A.Cash is credited for $6,081, Equipment is credited for $18,372, and Notes Payable is debited for $12,291.

B.Cash is debited for $6,081, Equipment is credited for $12,291, and Notes Payable is debited for $6,210.

C.Cash is debited for $6,081, Equipment is debited for $12,291,and Notes Payable is credited for $18,372.

D.Cash is credited for $6,081, Equipment is debited for $18,372, and Notes Payable is credited for $12,291.

67. Jason Retail had the following balances and transactions during 2017.

Beginning Inventory	1515 units at $ 72$72
June 10	Purchased 3030 units at $ 83$83
December 30	Sold 2020 units
December 31	Replacement cost $ 85$85

The company maintains its records of inventory on a perpetual basis using the FIFO inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31, 2017 using the lowerminusofminuscostminusorminusmarket rule.

A.$3,825

B.$2,550

C.$2,075

D.$ 2125

68. What is the acid-test ratio for a merchant with the following account balances? (Round your answer to two decimal places.)

Cash	$21,000
Short-term investments	41,000
Net current receivables	53,000
Merchandise inventory	93,000
Total current liabilities	275,000

A.0.82

B.0.61

C.0.42

D.0.76

70. For an accounting equation to balance, a transaction must affect both sides of the equation.

True

False

74. The ability of a company to repay its liabilities can be determined from its ________.

A.journal

B.creditors

C.debt ratio

D.bankers