Mast General Store has total receipts for the month of 45,990 including sales taxes. If the sales tax rate is 5%, what are Mast's sales for the month?

a.43,691

b.43,800

c.48,290

d.It cannot be determined.

Ppt no 15

Solution: 45,990/(1+.05)=

[Tot. sales (1 + Sales tax %) = Sales]

90.Working capital is

a.current assets plus current liabilities.

b.current assets minus current liabilities.

c.current assets divided by current liabilities.

d.current assets multiplied by current liabilities.

Ppt no 38, Ppt no 41

91.The current ratio is

a.current assets plus current liabilities.

b.current assets minus current liabilities.

c.current assets divided by current liabilities.

d.current assets multiplied by current liabilities.

Ppt no 38, Ppt no 41

92.Monkee's Company has current assets of 45,000, current liabilities of 50,000, long-term assets of 90,000 and non-current liabilities of 40,000. Monkee's Company's working capital and its current ratio are:

a.45,000 and .90:1.

b.5,000 and 1.50:1.

c.5,000 and .90:1.

d.(5,000) and .90:1.

Ppt no 38 dan no 41

Solution: 45,000-50,000=(5,000); 45,000/50,000=.90 : 1

[Curent assets - Current liabl. = Working cap.); (Current assets Current liabl. = Current ratio)]

93.OMRON Lmtbeganlaunching a new product"Omron Forehead Thermometer" in2020 and provides a one year warranty on the products it sells. They estimate that 20,000 of the 400,000 units sold in 2020 will be returned for repairs and that these repairs will cost $8 per unit. The cost of repairing 16,000 units presented for service in 2020 was $128,000.OMRONshould report

a.warranty expense of $32,000 for 2020.

b.warranty expense of $160,000 for 2020.

c.warranty liability of $160,000 on December 31, 2020.

d.no warranty obligation on December 31, 2020, since this is only a provision.

Ppt no 31 - Ppt no 36

Solution: (20,000-16,000)$8=$32,000 + $128,000 = $_______

[(Est. units - Actual units) x Cost per unit = Warranty expense + Exp. incurred]

95.The accounting for warranty cost is based on the expense recognition principle, which requires that the estimated cost of honoring warranty contracts should be recognized as an expense

a.when the product is brought in for repairs.

b.in the period in which the product was sold.

c.at the end of the warranty period.

d.only if the repairs are expected to be made within one year.

Pptno32

96.Common types of provisions are obligations to each of the following except

a.environmental damage.

b.litigation expense.

c.warranty expense.

d.payroll tax expense.

Pptno31

98.In accounting for a provision, the term probable is defined as

a.a probability of occurrence greater than 75%.

b.reasonably possible or greater.

c.more likely than not to occur.

d.None of these answer choices are correct.

Ppt no 31,Ppt no 32

105.Employee payroll deductions include each of the followingexcept

a.union dues.

b.income taxes.

c.Social Security taxes.

d.All of these are payroll deductions.

Ppt no 20

111.A provision is recorded when the likelihood of occurrence is

a.remote.

b.reasonably possible.

c.probable.

d.nil or zero.

Ppt no 31