can you please post the answers of these 20 MCQ's

MULTIPLE CHOICE - 20 MARKS: Choose the best inswer for cach question and use your pencil to shade in the correct response on the Grade Master sheet. 1. Using the company's age list of accounts receivable, $4,200 of receivables were estimated to be uncollectible. If the Allowance for Doubtful Accounts haid an unadjusted SB00 debit balance, the adjusting entry to record bad debt expense will involve a: (a) debit to Bad Debis Expense for $4,200. (b) debit to Allowance for Doubtful Accounts for $3,400. (c) debit to Bad Debts Expense for $3,400. (d) credit to Allowance for Doubtfil Accounts for $5,000 (e) no adjusting entry is necessary. 2. A retailer collected the following information about its inventories to apply the lower of cost and net realizable value in valuing its three products: Product X=575,000 cost and $73,000 NRV, Product Y - $65,000 cost and $68,000 NRV, and Product Z - $26,000 cost and $24,000NRV. After the retailet values its inventory at the lower of cost or net realizable value, the amount reported on the balance sheet would be: (a) $166,000 (b) $164,000. (c) $165,000. (d) $162,000. (c) $163,000 (a) 56.900 . (b) $7,125. (c) 55,200 . (d) $5,650. 4. A retailer reported inventory of $20,000 on January 1 and uses a periodic inventory system. (c) 57,315 . During the year, the retailer reported $4,000 in purchase returns and discounts, $140,000 in purchases, and $10,000 for freight charged by shippers for purchased inventory. On December 31 , the retailer reported ending inventory of $30.000. The cost of goods sold was (a) $136,000. (b) $164,000. (c) $166,000. (d) $124,000. (e) $116,000 5. A business has the following items at year-end, $10,250 in a bank chequing account, 5350 in post-dated cheques, $16,800 itwested in 60 -day treasury bills, and $2,200 cash refund due from the B.C. Ministry of Finance. What is the balince of "cash and cash equivalents" at year end? (a) $27,050. (b) 529,250 . (c) $29,850. (d) $10.500. (e) $27,050 6. Which one of the following statements concerning bad debt expenses is correet? (a) Under the pereentage of receivabies method, bad debt expense is the year-end receivables multiplied by the % of uncollectible accounts. (b) Under the allowance method, you recognize bad debt expense when account receivables are written off. (c) The year end adjusting entry involves a debit to bad debt expense and a credit to the allowance account. (d) When you collect a previously writen off account, you credit bad debt expense. 7. During a year of falling purchase costs for inventory (e 8 , decrease in unit costs): (a) FIFO will result in a higher ending intentory valuation than the average cost formula. (b) FIFO will result in a higher cost of goods sold than the average cost formula. (e) Average cost formula will result in a higher cost of goods sold than the FIFO cost formula. (d) Average cost formula will result in a lower ending inventory valuation than the FIFO cost formula. 8. Due to an error in the physical count of inventory at year end, there was an $9,000 overstatement in inventory. The impact of this error on the current year end financial statements is: CostofGoodsSold(a)understated(b)understated(c)overstated(d)overstatedNetincomeunderstatedoverstatedoverstatedunderstated 9. Which of the following is not a good control activity over cast? (a) Only decignated personnel are authorized to handle cash. (b) Surprise audits of cash on hand made occasionally. (c) Access to cash is limited to designated employees. (d) The same individual receives cash and pays the bills. (c) Cash and cheques are deposited daily to the bank. 10. A retailer uses a periodic inventory system. In the retailer's income statement, purchases minus purchase returns, allowances, and discounts, is called: (a) cost of goods purchased. (b) cost of goods available for sale. (c) net purchases. (d) gross profit. (e) cost of goods sold. 11. A company writes a $182 cheque to a supplier. The cheque is incorrectly recorded in the company 's system as $218. Within the bank reconciliation, the $36 error should be (a) added to the balance per books. (b) deducted from the bulance per books. (c) added to the balance per bank. (d) deducted from the balance per bank. (c) no adjusting entry is recorded. 12. Equipment with a cost of $160,000, an estimated residual value of $10,000, and an estimated life of 4 years, was purchased on April 1 . If the straight-line method is used, the depreciation expense for the same year ended December 31 is: (a) 540,000. (b) $37,525. (c) $30,000. (d) 528,125 (c) $22,815. 13. In a periodic inventory system, when the buyer pays for freight costs, this entails: (a) a debit to the Sales account. (b) a debit to the Purchases account. (c) a debit to the Freight in account. (d) a debit to the Purchase Allowances account. (c) a debit to the Inventory account. 14. A company purchased $200,000 in equipment on the first day of a new year. The equipment is estimated to have a 5-year useful life and a $20,000 residual value. If the company uses the double diminishing-balance method, what is the depreciation expense for the second year after the equipment was purchased? (a) 540,000 (b) $43,200. (c) 548,000 . (d) $72,000. (c) $80,000. 15. Two companies report the same cost of goods available for sale but each employs a different inventory cost formula. If the price of goods has increase (e.g. rising unit cost) has increased during the current year, then the company using: (a) FIFO will report lower ending inventory. (b) Average cost will report lower ending inventory. (c) FIFO will report higher cost of goods sold. (d) Average cost will report higher profit for the year. 16. A truck onginally costed $14,000. Up to its date of disposal, $12,000 of accumulated depreciation had been recorded. The truck was sold for $3,000 cash. The entry to record this transaction would include a: (a) loss on disposal of $1.000. (b) gain on disposal of $1,000. (c) credit to the Truck account for $3,000. (d) credit to Accumulated Depreciation for $12,000. (c) credit to cash 17. Five months ago, a customer signed a $123,500,5-month, 8% promissory note. On maturity, the customer must pay the amount borrowed plus acerued interest. After two months, accrued interest was recognized on the company's fiscal year-end. What is the joumal entry if the customer did not pay the note on maturity and the credit department views it as collectible? (a) $127,617 debit to accounts receivable. (b) $125,147 debit to allowance to doubtful accounts. (c) $123,500 debit to accounts receivable. (d) $125,147 debit to accounts receivable. (c) $127,617 debit to allowance to doubtful accounts. 18. Equipment was purchased one year ago at the cost of 5465,300 . The equipment had a 10 year expected useful life and a residual value of $135,400. The equipment is being depreciated using the straight-line method. After the first year, due to rapid technological change, the useful life of the equipment has dropped to 5 -years and its estimated residual value has fallen to $67,500. What is the depreciation expense for year 2 ? (a) 588,138 (b) $88,271 (c) 589,065 (d) $90,724 (e) $91,203 19. A business collected on an account which it had previously written off under the allowance method for uncollectible accounts. The collection of the accounts receivable: (a) increases net income in the period it is collected. (b) is recorded by debiting Cash and crediting Bad Debts Expense. (c) requires a correcting entry for the period in which the account was written off. (d) does not affect net income in the period it is collected. (c) usually requires one jourmal entry. 20. A company just starting its business made the following four inventory purchases in fune: On June 25, the company made its first sale when a local customer purchased 500 units for $3,500. The company uses a perpetual inventory system. Using the FIFO cost formula, the amount of the cost of goods sold for June is: (a) 5645 , (b) $695. (c) $1,650. (d) $1,700. (e) 51,064 MULTIPLE CHOICE - 20 MARKS: Choose the best inswer for cach question and use your pencil to shade in the correct response on the Grade Master sheet. 1. Using the company's age list of accounts receivable, $4,200 of receivables were estimated to be uncollectible. If the Allowance for Doubtful Accounts haid an unadjusted SB00 debit balance, the adjusting entry to record bad debt expense will involve a: (a) debit to Bad Debis Expense for $4,200. (b) debit to Allowance for Doubtful Accounts for $3,400. (c) debit to Bad Debts Expense for $3,400. (d) credit to Allowance for Doubtfil Accounts for $5,000 (e) no adjusting entry is necessary. 2. A retailer collected the following information about its inventories to apply the lower of cost and net realizable value in valuing its three products: Product X=575,000 cost and $73,000 NRV, Product Y - $65,000 cost and $68,000 NRV, and Product Z - $26,000 cost and $24,000NRV. After the retailet values its inventory at the lower of cost or net realizable value, the amount reported on the balance sheet would be: (a) $166,000 (b) $164,000. (c) $165,000. (d) $162,000. (c) $163,000 (a) 56.900 . (b) $7,125. (c) 55,200 . (d) $5,650. 4. A retailer reported inventory of $20,000 on January 1 and uses a periodic inventory system. (c) 57,315 . During the year, the retailer reported $4,000 in purchase returns and discounts, $140,000 in purchases, and $10,000 for freight charged by shippers for purchased inventory. On December 31 , the retailer reported ending inventory of $30.000. The cost of goods sold was (a) $136,000. (b) $164,000. (c) $166,000. (d) $124,000. (e) $116,000 5. A business has the following items at year-end, $10,250 in a bank chequing account, 5350 in post-dated cheques, $16,800 itwested in 60 -day treasury bills, and $2,200 cash refund due from the B.C. Ministry of Finance. What is the balince of "cash and cash equivalents" at year end? (a) $27,050. (b) 529,250 . (c) $29,850. (d) $10.500. (e) $27,050 6. Which one of the following statements concerning bad debt expenses is correet? (a) Under the pereentage of receivabies method, bad debt expense is the year-end receivables multiplied by the % of uncollectible accounts. (b) Under the allowance method, you recognize bad debt expense when account receivables are written off. (c) The year end adjusting entry involves a debit to bad debt expense and a credit to the allowance account. (d) When you collect a previously writen off account, you credit bad debt expense. 7. During a year of falling purchase costs for inventory (e 8 , decrease in unit costs): (a) FIFO will result in a higher ending intentory valuation than the average cost formula. (b) FIFO will result in a higher cost of goods sold than the average cost formula. (e) Average cost formula will result in a higher cost of goods sold than the FIFO cost formula. (d) Average cost formula will result in a lower ending inventory valuation than the FIFO cost formula. 8. Due to an error in the physical count of inventory at year end, there was an $9,000 overstatement in inventory. The impact of this error on the current year end financial statements is: CostofGoodsSold(a)understated(b)understated(c)overstated(d)overstatedNetincomeunderstatedoverstatedoverstatedunderstated 9. Which of the following is not a good control activity over cast? (a) Only decignated personnel are authorized to handle cash. (b) Surprise audits of cash on hand made occasionally. (c) Access to cash is limited to designated employees. (d) The same individual receives cash and pays the bills. (c) Cash and cheques are deposited daily to the bank. 10. A retailer uses a periodic inventory system. In the retailer's income statement, purchases minus purchase returns, allowances, and discounts, is called: (a) cost of goods purchased. (b) cost of goods available for sale. (c) net purchases. (d) gross profit. (e) cost of goods sold. 11. A company writes a $182 cheque to a supplier. The cheque is incorrectly recorded in the company 's system as $218. Within the bank reconciliation, the $36 error should be (a) added to the balance per books. (b) deducted from the bulance per books. (c) added to the balance per bank. (d) deducted from the balance per bank. (c) no adjusting entry is recorded. 12. Equipment with a cost of $160,000, an estimated residual value of $10,000, and an estimated life of 4 years, was purchased on April 1 . If the straight-line method is used, the depreciation expense for the same year ended December 31 is: (a) 540,000. (b) $37,525. (c) $30,000. (d) 528,125 (c) $22,815. 13. In a periodic inventory system, when the buyer pays for freight costs, this entails: (a) a debit to the Sales account. (b) a debit to the Purchases account. (c) a debit to the Freight in account. (d) a debit to the Purchase Allowances account. (c) a debit to the Inventory account. 14. A company purchased $200,000 in equipment on the first day of a new year. The equipment is estimated to have a 5-year useful life and a $20,000 residual value. If the company uses the double diminishing-balance method, what is the depreciation expense for the second year after the equipment was purchased? (a) 540,000 (b) $43,200. (c) 548,000 . (d) $72,000. (c) $80,000. 15. Two companies report the same cost of goods available for sale but each employs a different inventory cost formula. If the price of goods has increase (e.g. rising unit cost) has increased during the current year, then the company using: (a) FIFO will report lower ending inventory. (b) Average cost will report lower ending inventory. (c) FIFO will report higher cost of goods sold. (d) Average cost will report higher profit for the year. 16. A truck onginally costed $14,000. Up to its date of disposal, $12,000 of accumulated depreciation had been recorded. The truck was sold for $3,000 cash. The entry to record this transaction would include a: (a) loss on disposal of $1.000. (b) gain on disposal of $1,000. (c) credit to the Truck account for $3,000. (d) credit to Accumulated Depreciation for $12,000. (c) credit to cash 17. Five months ago, a customer signed a $123,500,5-month, 8% promissory note. On maturity, the customer must pay the amount borrowed plus acerued interest. After two months, accrued interest was recognized on the company's fiscal year-end. What is the joumal entry if the customer did not pay the note on maturity and the credit department views it as collectible? (a) $127,617 debit to accounts receivable. (b) $125,147 debit to allowance to doubtful accounts. (c) $123,500 debit to accounts receivable. (d) $125,147 debit to accounts receivable. (c) $127,617 debit to allowance to doubtful accounts. 18. Equipment was purchased one year ago at the cost of 5465,300 . The equipment had a 10 year expected useful life and a residual value of $135,400. The equipment is being depreciated using the straight-line method. After the first year, due to rapid technological change, the useful life of the equipment has dropped to 5 -years and its estimated residual value has fallen to $67,500. What is the depreciation expense for year 2 ? (a) 588,138 (b) $88,271 (c) 589,065 (d) $90,724 (e) $91,203 19. A business collected on an account which it had previously written off under the allowance method for uncollectible accounts. The collection of the accounts receivable: (a) increases net income in the period it is collected. (b) is recorded by debiting Cash and crediting Bad Debts Expense. (c) requires a correcting entry for the period in which the account was written off. (d) does not affect net income in the period it is collected. (c) usually requires one jourmal entry. 20. A company just starting its business made the following four inventory purchases in fune: On June 25, the company made its first sale when a local customer purchased 500 units for $3,500. The company uses a perpetual inventory system. Using the FIFO cost formula, the amount of the cost of goods sold for June is: (a) 5645 , (b) $695. (c) $1,650. (d) $1,700. (e) 51,064