multiple choice questions for accounting

1.Wholesalers offer trade discounts to?

A-government agencies B-Small stores C-none of the above D- all business may get a trade discount

2. Cost of goods sold is reported as a(n)?

A-Current asset B-Long term asset C-current liability D-expense

3. In a perpetual inventory system?

A-the inventory records cannot be computerized B-Each purchase and sale of inventory is recorded in the inventory account. C-the amount of inventory for sale and the amount sold are not listed in the inventory account. D- a count must be made in order to know the inventory amount

4. physical inventory on hand has a balance of $18,500, inventory records indicated a balance of 19,000. The entry to record an adjustment to inventory shrinkage include?

A- debit to inventory B- debit to cost of goods sold C- debit to sales D- none of the above

5. The difference between the income statements of a service company and a retail company is that the retail company's income statement includes?

A-cost of goods sold B-operating expenses C-net income D-revenues

6. Which inventory cost method offers income tax savings during periods of rising prices?

A-FIFO inventory cost method B-specific identification inventory cost method C- LIFO inventory cost method D-weighted average inventory cost method

7. The specific identification inventory method cannot be used?

A. When each inventory unit can be specifically identified. B-when all units sold are a like. C- by an automobile dealer where automobiles have unique serial numbers. When the unit sold is identified with a specific

8. Which of the following is NOT a reason that congress passed the Sarbanes-Oxley Act?

A- To answer the public outcry related to the financial scandals of the early 2000s B- to require companies to maintain strong and effective internal controls over the recording of financial transactions C- to apply the same controls to private companies as to public companies D- to require companies to maintain strong and effective internal controls over the preparation of financial statements.

9. Cash equivalents do not include

A- U.S Treasury bills B- commercial paper C- accounts receivable D-money market funds.

10. The petty cash fund should be replenished for the

A- amount needed to bring petty cash fund back to its established amount. B- amount of expenses estimated for the next period.C- amount of total receipts plus cash on hand. D- total amount for which the account was originally set up.