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If the market interest rate goes up, what would occur to bond prices? Select one: a. They would increase. b. Bonds cannot be sold when interest rates change. c. They would stay the same. d. They would decrease. A company has costs and net realizable value data as follows: Cost NRV Monitors: $50,000 $45,000 Keyboards: $36,000 Laptops: $56,000 $38,000 $51,200 What is the ending inventory balance when applying the lower of cost and net realizable value. Select one: a. $137,000 b. $132,200 c. $139,000 d. $130,200 Vice Company purchased a diamond drill in 2019. Exactly two years later, the drilling equipment was sold to another company. You have been tasked with entering the correct journal entry for the disposal, given the following information on the date of the disposal: - Amount received for sale: $80,000 - Accumulated depreciation: $200,000 - Carrying amount: $100,000 Select one: a. Dr. Cash 80,000 || Dr. Loss on Disposal 120,000 || Dr. Accumulated Depreciation - Drill Equipment 200,000 b. Dr. Cash 80,000 // Dr. Loss on Disposal 20,000 // Cr. Drill Equipment 100,000 c. Dr. Cash 80,000 || Dr. Accumulated Depreciation - Drill Equipment $200,000 // Cr. Gain on Disposal 20,000 // Cr. Drill Equipment $260,000 d. Dr. Cash 80,000 // Dr. Accumulated Depreciation - Drill Equipment $200,000 // Dr. Loss on Disposal 20,000 // Cr. Drill Equipment $300,000 A business uses a perpetual inventory system. During periods of rising inventory prices, cost of goods sold using the FIFO cost formula will be: Select one: a. lower than using the weighted average cost formula. b. higher than using the weighted average cost formula. c. the same as using the weighted average cost formula, d. indeterminable. At November 30, a company had four different groups of goods that were in transit. The groups were as follows: 1) a purchase with terms FOB shipping point, 2) a sale made with terms FOB shipping point, 3) a sale made with terms FOB destination, 4) a purchase made FOB destination. Which of these groups would be included in the company's November 30th ending inventory? Select one: a. 2 and 4 b. 1 and 4 c. 1 and 3 d. 2 and 3 You work for SteelSeries Company and are in charge of testing their sword making equipment for impairment. You completed the testing and determined the following information: - The recoverable amount of the sword making equipment is $100,000 - The equipment currently has a carrying amount of $145,000 Given that information, you would input the following entry for impairment: Select one: a. Dr. Depreciation Expense $145,000 || Cr. Accumulated Depreciation - Equipment $145,000. b. Dr. Impairment Loss $145,000 || Cr. Accumulated Depreciation - Equipment $145,000 c. Dr. Impairment Loss $45,000 // Cr. Accumulated Depreciation - Equipment $45,000 d. Dr. Impairment Loss $45,000 // Cr. Depreciation Expense $45,000. There was an error on the current month's bank statement whereby the bank accidentally recorded a $1,337 deposit as $1,373. What adjustment is made to the bank reconciliation? Select one: a. Increase to company's cash balance on the books b. Decrease to company's cash balance on the books c. Decrease the bank balance d. Increase the bank balance You are reviewing information regarding accounts receivable and note that $20,000 is estimated to be not collectible. You also notice the following information: - Allowance for Doubtful Accounts current balance: $5,000 debit. With that information at your disposal, the journal entry to record bad debts expense for this period will require: Select one: a. Debit Allowance for Doubtful Accounts $20,000 b. Debit Bad Debts Expense $15,000 C. Debit Bad Debit Expense $20,000 d. Debit Bad Debts Expense $25,000 Which of the following is not considered a control activity over cash receipts or payments? Select one: a. Only designated personnel are authorized to handle cash receipts. b. Cheques signed by at least two authorized people. c. Supervisors count cash receipts daily. d. Supporting documentation is carefully reviewed before signing a cheque. e. Payments should be made using cash whenever possible. A company using a periodic inventory system performs an inventory count at the end of the fiscal year, December 31, 2020. The count was done by a junior accountant and resulted in a $12,500 overstatement of ending inventory. The effect of this error in the financial statements created for December 31, 2020 would be: Select one: a. Cost of Goods Sold: Overstated // Profit: Overstated b. Cost of Goods Sold: Understated // Profit: Overstated C. Cost of Goods Sold: Understated // Profit: Understated d. Cost of Goods Sold: Overstated // Profit: Understated Rogers Communications ('Rogers") announced a $5.2 billion television rights deal with the National Hockey League ('NHL') whereby Rogers will have exclusive rights to televise NHL hockey games throughout Canada for the next 12 years. How would Rogers recognize these exclusive rights on their balance sheet? Select one: a. Recognize an intangible asset. b. Recognize an inventory asset. c. Recognize an unearned revenue liability. d. Recognize a mortgage payable. In its first year of operations, a retailer made the following inventory purchases: 210 units at $7.50 each, 240 units at $8.00 each, and 250 at $9.50 each. At year end, there are 130 units remaining in inventory. The retailer used a periodic inventory system. Using the weighted average cost formula, cost of goods sold for the year was: [Note - do NOT round your weighted average cost per unit.) Select one: a. $4,840 b. $4,832 c. $4,974 d. $5,196 e. $4,780