ABC Company reports an unadjusted cash balance of $4,100 at the end of the month and $5,000 on its bank statement. Reconciling items include deposits in transit of $2,500, outstanding cheques of $3,500, and service charges of $100. What is the company's adjusted cash balance? O a. $3,900 O b. $4,100 O c. $4,000 O d. $5,000 Accounts and Notes receivable are reported in the asset section of the statement of financial position at their: O a a. Net realizable value O b. Carrying amount OC. Invoice cost O d. Lower of cost and net realizable value Which of the following is NOT an example of a financing activity? O a. Repaying money to a bank O b. Borrowing money from a bank O c. Selling goods on credit O d. Paying dividends What type of analysis does the following schedule show? Amount Percentage Current Assets $225,000 125% Non-Current Assets $750,000 75% Total Assets $975,000 100% . Ratio analysis O b. Inter-company comparison O c. Vertical analysis O d. Horizontal analysis With Net sales of $400,000, cost of goods sold $310,000, operating expenses of $60,000, other revenues of $10,000, and an income tax expense of $8,000. What is the Gross Profit Margin? O a. 7.5% O b. 22.5% O c. 25.0% O c O d. 8.0% Which of the following is NOT one of the five primary components of internal control? O a. Size of the business O b. Control activities O c. Control environment O c O d. Risk assessment Which of the following is a contra revenue account that normally has a debit balance? O a. Sales Returns and Allowances O b. Sales O c. Cost of goods sold O d. Freight out ABC Company purchased merchandise for $560 on July 12 whose terms were 1/10,n30. FOB shipping point. On July 12, shipping costs of $50 was paid by the company. On July 17 the company returned $80 of merchandise. On July 21 the company the amount owing. What is the ending balance in the merchandise inventory account relating to these transactions, if ABC Company uses a perpetual inventory system? d O a. $525.2 O b. $524.70 O c. $520 O d. $480 ABC Company borrows $497,000 from the bank at 7% for a three year period on Jan. 01. The loan will be repaid in three blended, Principal and interest, annual payments of $189,383 that are due at the end of each year. What is the amount of interest expense that should be recognized by the company in the second year? O a. $23,193 O b. $23,968 O c. $17,395 O d. $34,790 A trial balance will not balance if: O a. A $50 cash dividend is debited to dividends for $500 and credited to cash for $50 O b. The purchase of supplies on account is debited to supplies and credited to cash OC. A $250 payment on account is debited to accounts payable for $25 and credited to cash for $25 O d. A journal entry to record a cash sale is posted twice O