Marty Limited's book balance for cash on December 31, 2020, was $10,000. In addition, the company had the following items on its premises at the end of that day:

IOU on hand from Jonah's Jewelry, included in December 31 book balance	$200
Cheque payable to Marty, dated January 5, 2021, included in December 31 book balance	1,200
Cheque issued by Marty, payable to Wendy Motors, dated January 14, 2021, excluded - i.e., not deducted from - December 31 book balance	400
Cashier's cheque payable to Marty, dated December 28, 2020, excluded from December 31 book balance	500

The proper amount to be shown as Cash on Marty Limiteds statement of financial position at December 31, 2020, is

• A.

  $11,400

• B.

  $9,600

• C.

  $10,900

• D.

  $9,100

When calculating cash provided by operations in the statement of cash flows using the indirect method, how would a decrease in Inventory and a decrease in Accounts Payable be handled?

• A.

  A decrease in Inventory would be deducted from net income, and a decrease in Accounts Payable would be added to net income.

• B.

  Both a decrease in Inventory and a decrease in Accounts Payable would be added to net income.

• C.

  Both a decrease in Inventory and a decrease in Accounts Payable would be deducted from net income.

• D.

  A decrease in Inventory would be added to net income, and a decrease in Accounts Payable would be deducted from net income.

Young Ltd. estimates the cost of its physical inventory at March 31 for use in its interim financial statements (gross profit method). The gross profit margin is 20%. The following account balances are available:

• Inventory, March 1 $200,000
• Purchases 168,000
• Purchase returns 7,000
• Sales during March 350,000

What is the estimated dollar value of the inventory at March 31?

• A.

  $18,000

• B.

  $175,000

• C.

  $81,000

• D.

  $368,000

Which of the following would most likely not result in the discounting of reported earnings by the capital markets?

• A.

  A change from the average cost method to the FIFO method of inventory costing due to highly inflationary input costs.

• B.

  An optimistic calculation of the collectable amount of accounts receivable.

• C.

  The inclusion of highly subjective, highly variable estimates of revenue and expense related accruals and deferrals.

• D.

  A note disclosing the use of the double-declining basis of depreciation for equipment and vehicles and the straight-line method for buildings.

Which of the following is NOT a required supplemental disclosure for the balance sheet?

• A.

  Financial forecasts

• B.

  Contractual situations (i.e., commitments)

• C.

  Accounting policies

• D.

  Contingencies