1. Dumbledore received a sales order for $100,000 with terms 2n10 on 1/1/20. On 1/8/20 payment was made for:
   1. 100,000
   2. 2,000
   3. 102,000
   4. 98,000
2. Using the net method to account for discounts and returns will require future adjustment to the sales account if:
   1. Payment is received after the discount
   2. Payment is received before the discount
   3. Using the net method will never require adjustment
   4. Dobby performs the calculation
3. Neville accounts for bad debt using the direct method. Receivables from Draco Industries were determined to be doubtful on 3/1/20. On 7/1/20, partial payment was received. The following entry is required on 7/1/20
   1. Debt to Bad Debt Expense
   2. Credit to Allowance for Doubtful Accounts
   3. Debit to Accounts Receivable
   4. Debit to Allowance for Doubtful Accounts
4. The following should be excluded from inventory as of 12/31/20
   1. Goods shipped to us on 12/30/20 FOB Shipment (2 week delivery)
   2. Goods shipped to us on 12/30/20 FOB Destination (2 week delivery)
   3. Items provided to WalMart, held as of 12/31/20 on consignment
   4. Items that were sold on 1/1/2021
5. Purchase commitment entered simultaneously to mitigate future losses is an example of
   1. Shorting
   2. Hedging
   3. Bulling
   4. Calling
6. Under GAAP, assets with a reduced book value from historical costs due to fair market value conditions in prior periods can be written-up back to costs.
   1. True
   2. False
7. When performing inventory valuation calculations using major categories instead of specific identification will result in?
   1. The same reported value
   2. Higher value
   3. Lower value
   4. The two cannot be compared
8. Inventory that was purchased for $70,000 has a replacement of $80,000, net realizable value of $90,000 and profit margin of $5,000 will have a designated market value of?
   1. $70,000
   2. $80,000
   3. $90,000
   4. $85,000
9. Inventory that was purchased for $70,000 has a replacement of $80,000, net realizable value of $90,000 and profit margin of $5,000 should be reported at what value?
   1. $70,000
   2. $80,000
   3. $90,000
   4. $85,000
10. When preparing a budget for personal use, all of the following are useful except:
    1. Statement of Cash Flow
    2. Statement of Equity
    3. Balance Sheet
    4. Statement of Earnings
11. Accumulated Depreciation is a X account that maintains a normal X balance
    1. Liability, Debit
    2. Liability, Credit
    3. Asset, Debit
    4. Asset, Credit
12. WorldCom capitalized routine monthly fees that should have been expensed (treating its service provider as a rollover plan, when it did not rollover). The result was to inflate X and reduce Y.
    1. Assets, Expenses
    2. Assets, Revenue
    3. Liabilities, Expenses
    4. Liabilities, Revenue
13. If an exchange lacks commercial substance, and no cash is received, a company should:
    1. Defer Gain
    2. Recognize Loss
    3. Both
    4. Neither