Advance Acc 1 multiple choice questions, please choose the correct answers:

1- Coffin Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2019 and 2020. In 2019, show the installment sales $900,000, cost of installment sales $594,000, cash collection on 2019 sale $370,000. In 2020, show the installment sales $1,000,000, cost of installment sales $680,000, cash collection on 2019 sale $350,000, and cash collection on 2020 sale $450,000. What is gross profit recognized in 2020?

a) $262,000

b) $263,000

c) $264,000

d) $265,000

2- Coffin Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2019 and 2020. In 2019, show the installment sales $900,000, cost of installment sales $594,000, cash collection on 2019 sale $370,000. In 2020, show the installment sales $1,000,000, cost of installment sales $680,000, cash collection on 2019 sale $350,000, and cash collection on 2020 sale $450,000. What are not entries in 2020?

a) Debit Installment Accounts Receivable 1,000,000, and Credit Installment Sales Revenue 1,000,000

b) Debit Cost of Installment Sales 680,000, and Credit Inventory 680,000

c) Debit Deferred Gross Profit 263,000, and Credit Realized Gross Profit 263,000

d) Debit Installment Sales Revenue 1,000,000, and Credit Cost of Installment Sales 1,000,000

3) The initial amount paid installment sales system is call?

a) Cash Price

b) Retail Price

c) Interest Amount

d) Down Payment

4- If the customer fails to make payment of any installment, it is called default and the vendor has the right of?

a) Default

b) Repossession

c) Sale

d)Purchase

5- What is the formula of Gross Profit Rate?

a) (Installment Sales - Cost of Installment Sales)/Installment Sales

b) (Installment Sales + Cost of Installment Sales)/Installment Sales

c) (Installment Sales - Cost of Installment Sales)/Cost Installment Sales

d) (Installment Sales + Cost of Installment Sales)/Cost Installment Sales

6- Deferred Profit can be calculated by?

a) Gross Profit on Installment Sales - Realized Profit

b) Gross Profit on Installment Sales + Unrealized Profit

c) Gross Profit on Installment Sales * Realized Profit

d) Gross Profit on Installment Sales / Realized Profit

7- On May 3, 2019, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due, after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. What is the inventory value in the hands of the consignee?

a) $40,000

b) $40,420

c) $40,820

d) $40,840

8- On May 3, 2019, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due, after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. What is the inventory value of the units unsold in the hands of the consignee?

a) $20,200

b) $20,220

c) $20,400

d) $20,420

9- On May 3, 2019, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due, after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. What is a consignment sale?

a) $20,000

b) $30,000

c) $40,000

d) $50,000

10- On May 3, 2019, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due, after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. What is a commission charge by consignee?

a) $1,500

b) $1,800

c) $2,000

d) $2,200

11- On May 3, 2019, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due, after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. What is the total profit of consignment sales?

a) $5,500

b) $6,760

c) $7,260

d) $8,000

12- On May 3, 2019, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2019, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due, after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. What is the remittance from consignee?

a) $25,880

b) $26,780

c) $27,680

d) $28,580

13- In consignment, the sender of goods is called?

a) Consignee

b) Consignor

c) Debtor

d) Creditor

14- For expenses incurred by the consignor, this account is debited?

a) Consignment

b) Cash/Bank

c) Consignor

d) Consignee

15- Commission on consignment is _________ to consignee

a) Income

b) Expense

c) Asset

d) Loss

16- The relationship between consignor and consignee is that of:

a) employer and employee

b) business partners

c) owner and servant

d) principal and agent

17- On April 1, 2019, Dougherty Inc. entered into a cost-plus-fixed-fee contract to construct an electric generator for Altom Corporation. At the contract date, Dougherty estimated that it would take 2 years to complete the project at a cost of $2,000,000. The fixed fee stipulated in the contract is $450,000. Dougherty appropriately accounts for this contract under the percentage-of-completion method. During 2019, Dougherty incurred costs of $800,000 related to the project. The estimated cost at December 31, 2019, to complete the contract is $1,200,000. Altom was billed $600,000 under the contract. What is total cost occured?

a) $2,000,000

b) $2,250,000

c) $2,450,000

d) $2,500,000