Expenses not related to the primary operations of the business are sometimes reported as _____.

a. miscellaneous expense

b. other expenses

c. administrative expense

d. All of these choices are correct.

ASE Company sold goods, receiving $35,000 in cash and $15,000 on credit. How much revenue should it record under the accrual basis of accounting?

a. $50,000

b. $60,000

c. $35,000

d. $15,000

Which of the following should be added to net income in reconciling net income to net cash flows from (used for) operating activities?

a. A decrease in accounts receivable

b. A decrease in accounts payable

c. Preferred dividends declared and paid

d. An increase in supplies

Which of the following is not a retail business?

a. Target

b. Hershey

c. Walmart

d. Costco

Use the following data to determine the cost of ending inventory under the FIFO method:

Sept. 1Beginning inventory15 units at $20 each10Purchase20 units at $25 each20Purchase25 units at $28 each30Ending inventory30 units

a. $840

b. $750

c. $675

d. $825

Eagle Eye, Inc. received an additional investment of $6,000 cash in exchange for shares of common stock. How does this transaction affect Eagle Eye's accounts?

a. Increase Stock Expense and decrease Cash by $6,000 each

b. Increase Common Stock and increase Stock Revenue by $6,000 each

c. Increase Common Stock and decrease Retained Earnings by $6,000 each

d. Increase Common Stock and increase Cash by $6,000 each

Use the following data to determine the cost of ending inventory using the LIFO method:

Sept. 1Beginning inventory15 units at $20 each10Purchase20 units at $25 each20Purchase25 units at $28 each30Ending inventory30 units

a. $825

b. $750

c. $600

d. $675

Which of the following transactions would be recorded in a cash basis system of accounting?

a. Purchase of supplies on credit

b. Purchase of equipment by signing a note

c. Sale of goods for cash

d. Sale of goods against a note