-On-time Trucking reported the following data for 19X4:

Beginning stockholders' equity $32,000

Capital stock issued 20,000

Revenues 70,000

Expenses 25,000

Dividends paid 9,000

The company's ending stockholders' equity for 19X4 would be:

a. $36,000.

b. $45,000.

c. $66,000.

d. $88,000.

-Which of the following pairs of accounts are usually current liabilities?

a. accounts payable, accounts receivable.

b. prepaid expenses, wages payable.

c. income taxes payable, unearned revenue.

d. notes receivable, bonds payable.

-If beginning inventory is understated, then:

a. goods available for sale will be overstated.

b. gross profit will be overstated.

c. net income will be understated.

d. stockholders' equity will be correct because the error will have been reversed.

-When preparing a bank reconciliation, deposits in transit are:

a. added to the balance per bank statement.

b. subtracted from the balance per bank statement.

c. added to the balance per company records.

d. subtracted from the balance per company records.

-CC owns a $600,000 building that was purchased four years ago. The firm was recording depreciation under straight line method, estimating a 20-year service life and a $40,000 residual value. At the beginning of this, the 5th year, CC determined that the residual value should be $60,000. As a result of this revision, depreciation in the current year would be:

a. $24,250.

b. $26,750.

c. $27,000.

d. $30,500.

-Using the income statement approach, an estimate of uncollectible accounts may be calculated by taking a percentage of:

a. net income.

b. allowance for doubtful accounts.

c. outstanding accounts receivable.

d. credit sales.