MCQ

8. Deferred revenues are (a) received and recorded as liabilities before they are earned. (b) earned and recorded as liabilities before they are received (c) earned but not yet received or recorded. (d) earned and already received and recorded. 9. The financial statements of Andrea Manufacturing Inc. report credit sales of $600,000 and accounts recevable of $60,000 and $40,000 at the beginning of the year and end of the year, respectively What is the recelvables turnover ratio for Bolero? (a) 7.5 times (b) 11.25 times (C) 12.0 times (d) 22.5 times Use the following information to answer MCQ #10 and 11: For last month, the following data were taken from the ledger of Rockit Inc.: Beginning Inventory... $ 43,000 Ending Inventory 32,400 Freight in 2.300 Purchases 224,000 Purchase Discounts 1,500 Purchase Returns and Allowances 3.800