Place the four documents in order of occurrence (which is prepared first, second, etc.). Vendor invoice, receiving report, purchase requisition, purchase order. (2 marks)

Question 27 options:

	Purchase requisition, receiving report, purchase order, vendor invoice,
	Receiving report, purchase requisition, purchase order, vendor invoice,
	Purchase requisition purchase order, receiving report, vendor invoice,
	Vendor invoice, receiving report, purchase requisition, purchase order

Question 28 (2 points)

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If a shipment dated December 29, 2019, is made under the purchase and sale terms "FOB-Destination" and the truck delivering the product explodes on the highway en route to the purchaser on January 3, 2020, which party suffers the loss and why? (2 marks)

Question 28 options:

	The seller
	The buyer
	Neither
	Both the buyer and seller

Question 29 (4 points)

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At the end of the current fiscal year, Demco Inc. had 3000 units of Product A that was purchased for $10 per unit. On the last day of the fiscal year the controller was advised by the supplier of Product A that due to an extreme shortage of raw materials required to manufacture Product A, the price had doubled and it would now cost Demco Inc. $20 to buy it. With this new information the controller valued the 3,000 units in inventory at the new cost of $20 and created an additional $30,000 of profit. One month later during the audit of Demco Inc., you PA, confirmed the new price with the supplier and you are informed that the price had dropped to $15 per unit due to new sources of raw materials. What adjustment (if any) is required to inventory?

Question 29 options:

	An adjustment to decrease inventory by $45,000
	No adjustment is required since the drop in price occurred after year-end
	An adjustment to decrease inventory by $30,000
	An adjustment to decrease inventory by $15,000

Question 30 (3 points)

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If your client earned an after tax profit of $3,000,000 in 2019, had an ending retained earnings balance in 2018 of $12,980,000 and showed a balance in retained earnings at the end of the current fiscal year of 14,480,000, what is the amount of dividends paid in the year? $___________________________________ (3 marks)

Question 30 options:

	3,000,000
	$1,500,000
	Undeterminable
	$4,500,000

Question 31 (3 points)

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During the audit of the dividends declared and paid account, what is one procedure the auditor can perform to verify the accuracy of the ($) amount paid. (3 marks)

Question 31 options:

	Compare the total amount of dividends paid as a percent of net income
	Multiply the number of shares issued and outstanding by the dividend per share
	Multiply the number of shares issued and outstanding by EPS
	Divide the net income for the year by the number of autorized shares in the company's articles of incorporation and compare it to the dividend per share

Question 32 (4 points)

Listen

Outstanding Cheques $53,675

Bank Service Charge $ 156

Outstanding Deposits $ 32,500

NSF Cheque from Customer $ 1,860

Bank Statement Balance - November 30/20 $ 28,700

Cash (G/L) Balance - November 30/20 $ 8,568

Interest Earned from Bank $ 973

What is the Adjusted Bank & Cash Balance?

Question 32 options:

	$ 7,525
	$7,369
	$8,498
	$5,665

Question 33 (2 points)

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If cheque # 456 was written correctly by the company to pay for Advertising for $ 5690 was debited at the bank for $6,590, what bank reconciling adjustment is required on the bank reconciliation?

Question 33 options:

	Adjust the bank side by subtracting $5,690
	Adjust the book side by subtracting $900
	Adjust the book side by adding $900
	Adjust the bank side by adding back $900