I am looking for help on Quiz 2. I thought I had a good grasp of the concepts, but am struggling. Thank you for any assistance!

Quiz 2 Ch 5-16 1. The Cash account on the balance sheet should not include which of the following items: a. Travel advances to employees b. Currency c. Money orders d. Deposits in transit 2. Lundstrom Company began making sales on credit during 20X1. The company used the direct write-off method for uncollectible accounts. A material amount of uncollectible accounts resulting from sales made during 20X1 were written off during 20X2. What was the effect of this write-off on net income for 20X1 and 20X2? 20X1 20X2 a. Overstate Overstate b. Overstate Understate c. Understate Overstate d. Understate Understate 3. Hefty Company wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the current year. January 2 Beginning Inventory 500 units at $3.00 April 7 Purchased 1,100 units at $3.20 June 30 Purchased 400 units at $4.00 December 7 Purchased 1,600 units at $4.40 Sales during the year were 2,700 units at $5.00. If Hefty used the first-in, first-out method, ending inventory would be: a. $2,780 b. $3,960 c. $9,700 d. $10,880 4. When the contract interest rate for a bond exceeds the effective interest rate of the bond, then: a. The price of the bond will be equal to the future cash flow associated with the bond. b. The bond will be issued at a premium. c. The bond will be issued at a discount. d. The face value of the bond will fluctuate over its life. 5. Which of the following inventory methods will always produce the same results under both a periodic and perpetual system? a. FIFO b. LIFO c. Average d. All of these 6. On April 1, 20X1, Collinge Corporation purchased $100,000 of 7%, 5-year bonds dated April 1, 20X1, at 101. Interest is paid on March 31 and September 30. Assuming use of the straightline amortization method, the proper amount of income to record on September 30, 20X1 is: a. $7,000 b. $3,400 c. $3,500 d. $3,600 7. On July 1, 20X1, Clem Company purchased factory equipment for $50,000. Residual value was estimated to be $2,000. The equipment will be depreciated over ten years using the doubledeclining-balance depreciation method. Clem has a December 31 year-end, and during 20X1, one-half of a year's depreciation expense was recorded. How much depreciation expense should be recorded for 20X2? (round computations to the nearest dollar) a. $4,320 b. $5,000 c. $8,640 d. $9,000 8. Which of the following terms best relates to natural resources? a. Depreciation. b. Depletion. c. Amortization. d. Accrual. 9. Burgundy Drug Store paid $137,000 in salaries during 20X1. Salary expense for the year was $148,500 and salaries payable at the end of 20X1 amounted to $17,300. What was the amount of salaries payable as of January 1, 20X1? a. $5,800 b. $11,500 c. $17,300 d. $28,800 10. If the indirect approach for the statement of cash flows is presented, which of the following items should be subtracted from accrual basis net income to derive cash flow from operating activities? a. Gains on the sale of long-term investments b. Losses on the sale of long-term investments c. Depreciation expense d. Amortization expense