Q1: cost of inventory includes

a. invoice price

b. sales tax

c. transportation charges

d. all of the above

q2: whihc is the following can be an income statement ledger account

a. cost of good sold

b. net income

c. gross profit

d. capital

q3: if the gross profit percentage is 40%, and the cost of good sold is $225,000, what is the amount of net sale

a. $150,000

b. $136,000

c. $375,000

d,$ 562,000

q4: Net income (loss ) for a corporation is accumulated in which the following accounts

a. contributed surplus

b. common stock distributable

c. retained earning

d. capital

q5: the decleration of cash dividend requires a

a. debit to retained earnings

b. credit to common stock

c. debit to cash

d. credit to subscription receivable

q6: if the income summary account has $5,500 debit balance before its closed to retained earnings, then the corporation

a. generate of a net income of $5,500

b. incurred a net loss of $5,500

c. had revenue that exceed expenses by $5,500

d. has expense that were $5,500 less than revenues

q7: whichi of the following accounts is not closed

a. supplies expense

b. unearned revenue

c. interest revenues

d. drawing

q8: accured wages for the months are $20,000

a. this means we paid $20,000 in wages this month

b. this means that $20,000 in wages has been incurred

c. this means we owe $20,000 in wages this month to our employees

d. this means we paid $20,000 in wages for work not done yet

q9: unearned revenue exisit when

a. our company receive payment for work not yet done

b. our company has generated revenue and not been paid yet

c. our company has generated revenue and has been paid

d. our company has not receive payment for work not yet done

q10the term used to dissolve a partnership as all partners leave with an amount of cash equal to their capiatal balance is

a. admission

b. withdrawal

c. dissolution

d. luquidation

q11: when a note receivable is dishonored

a. a new note receivable is debited

b. a new note receivable is credited

c. a new accounts receivable is debited

d. a new accounts receiveable is credited

q12: the correct journal entry to record the write-off a specific uncollectable account using a direct written-off method would be

a. uncollectible account expense

account receivable

b. allowance for doubtful accounts

accounts receivable

c. uncollectible account expense

allowance for doubtful accounts

d. account receivable

uncollectible account expense

q13: which of the following is defined as an equity issue that is characterized by guarateed culmitive cash dividends

a. debenture

b. mortage bond

c. common stock

d. prefeered share