1. On December 31st, a trucking company had 50,000 litres of diesel fuel in its storage tanks which it had bought in November at a cost of $1.20 per litre. The December 31st market price for diesel fuel is $1.30 per litre. The Company's fiscal year runs from January to December. The above facts will

1 point

have a negative affect on this year's Net Income

not affect the Income Statement

all of the answers to this question are incorrect

have a positive affect on this year's Net Income

2. For Company "Q", which manufactures refrigerators, the following actual costs/results for June 2020 were recorded: Rent: $5,000. Depreciation: $2,550. Units Manufactured & Sold: 850. Materials Used: $259,250. Manufacturing Labour Paid (on a "piecework" basis): $238,000, Office Overheads/Managers' Salaries: $17,000. Advertising: $4,250. Sale Price: $650 per unit. For the month of June, "variable costs per unit" were

2 points

$300

$585

$280

none of the answers are correct

$580

3. Depreciation is/can be mentioned on the

1 point

Both the Income Statement and Balance Sheet

None of the answers for this question are correct

Income Statement only

Balance Sheet only

4. For the year ended, Company X had Net Income of $50,000, increased it's inventories by $2,800 compared to last year, bought $9,000 of new equipment, had depreciation of $800, took out a loan for $2,000, paid off a $1,000 loan, sold $1,600 of old equipment. Company X had $500 in the bank at the beginning of the year. For the year Investing Activities

2 points

used $7,400 of cash

generated $8,200 of cash

used $8,200 of cash

used $9,000 of cash

5. For Company "Q", which manufactures refrigerators, the following actual costs/results for June 2020 were recorded: Rent: $5,000. Depreciation: $2,550. Units Manufactured & Sold: 850 Materials Used: $259,250. Manufacturing Labour Paid (on a "piecework" basis): $238,000, Office Overheads/Managers' Salaries: $17,000 Advertising: $4,250 Sale Price: $650 per unit. Depreciation in this cases is considered a

1 point

mixed cost

fixed cost

variable cost

Kaizen cost

6. At the beginning of 2019, "Company X" had Retained Earnings of $200,000. At the end of 2019, Retained Earnings had fallen to $170,000. In September, 2019, "Company X" paid common shareholders dividends totaling $50,000. Given the above, Net Income for "Company X" for 2019 was

2 points

$20,000

$50,000

$30,000

$180,000

$40,000