Question 1. 1. To omit the note in the financial statements that describes the inventory accounting methods
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Question 1.1.To omit the note in the financial statements that describes the inventory accounting methods used by the company would violate the ________. (Points : 1)
Question 2.2.Hilderbrand Office Products offers discounts to customers of 2% if the invoice is paid within 10 days. An invoice for $6,000 was received within the discount period and the discount was taken by the customer. The entry to record this cash receipt would be (Points : 1)
Cash
5880
Purchase Discounts
120
Inventory
6000
Inventory
5880
Purchase Discounts
120
Cash
6000
Cash
6000
Sales Discounts
120
Accounts Receivable
5880
Cash
5880
Sales Discounts
120
Accounts Receivable
6000
Question 3.3.Gabe Inc. reported ending inventory of $22,000 when they actually had $24,500 in ending inventory. Gabe Inc uses the periodic inventory accounting system. This error caused ________. (Points : 1)
assets and income to be understated in the current period and income to be overstated in the subsequent period assets to be understated; income to be overstated in the current period; and income to be understated in the subsequent period assets and income to be overstated in the current period and income to be overstated in the subsequent period assets to be overstated in the current period; income to be understated in the current period; and income to be understated in the subsequent period
Question 4.4.An inventory accounting system that would be sufficient to use for tracking supplies inventory at an office would be the ________ system. (Points : 1)
Question 5.5.Johnson Company purchases $20,000 of inventory from a vendor. During shipment, $500 of this inventory is damaged. Johnson Company returns the damaged inventory to the vendor. Freight-in charges on the shipment were $200.00. Additionally, Johnson Company pays the invoice within the discount terms and receives a discount of $390. Inventory increased by ________ from this transaction. (Points : 1)
$19,310 $20,000 $19,810 $20,310
Question 6.6.Please refer to the table below.
Sales Returns and Allowances
$2,400
Sales Commissions
$12,000
Cost of Goods Sold
$45,000
Sales Revenue
$127,000
Utilities
$4,500
Rent
$15,000
Sales Discounts
$1,500
Salaries
$25,000
Gain on sale of equipment
$4,000
Freight Out
$4,500
Depreciation Expense
$3,000
Interest Revenue
$300
What is net income? (Points : 1)
$18,400 $9,800 $14,100 $21,400
Question 7.7.Please refer to the table below.
Sales Returns and Allowances
$2,400
Sales Commissions
$12,000
Cost of Goods Sold
$45,000
Sales Revenue
$127,000
Utilities
$4,500
Rent
$15,000
Sales Discounts
$1,500
Salaries
$25,000
Gain on sale of equipment
$4,000
Freight Out
$4,500
Depreciation Expense
$3,000
Interest Revenue
$300
What is gross profit? (Points : 1)
$82,000 $66,100 $79,600 $78,100
Question 8.8.Please refer to the partially completed worksheet below:
Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
$7,100
$7,100
$7,100
Accounts receivable
8,500
$2,000
10,500
10,500
Supplies
100
$80
20
20
Equipment
7,500
7,500
7,500
Accumulated depreciation
$2,000
240
$2,240
$2,240
Notes Receivable
5,000
5,000
5,000
Accounts payable
1,200
1,200
1,200
Salary payable
800
180
980
980
Unearned revenue
600
600
600
Note payable
10,000
10,000
10,000
Capital
3,400
3,400
3,400
Drawing
2,300
2,300
2,300
Service revenue
40,000
2,000
42,000
$42,000
Salary expense
24,000
180
24,180
$24,180
Supplies expense
2,300
80
2,380
2,380
Depreciation expense
1,600
240
1,840
1,840
Interest revenue
400
400
400
$58,400
$58,400
$2,500
$2,500
$60,820
$60,820
$28,400
$42,400
$32,420
$18,420
This worksheet is prepared for the financial statements dated December 31st, 20X2. The note receivable is due on January 15th, 20X4. The note payable is due on December 1st, 20X3. The companys operating cycle is six months. What are total current assets? (Points : 1)
$30,120 $17,620 $27,880 $22,620
Question 9.9.Please refer to the table below.
Sales Returns and Allowances
$2,400
Sales Commissions
$12,000
Cost of Goods Sold
$45,000
Sales Revenue
$127,000
Utilities
$4,500
Rent
$15,000
Sales Discounts
$1,500
Salaries
$25,000
Gain on sale of equipment
$4,000
Freight Out
$4,500
Depreciation Expense
$3,000
Interest Revenue
$300
What are operating expenses? (Points : 1)
$52,000 $64,000 $67,900 $68,300
Question 10.10.Delco Inc had the following transactions in June and a beginning inventory of 20 units at $35 each.
June 4th purchased 15 units at $36.50 each
June 8th sold 22 units
June 16th purchased 20 units at $37.75 each
June 27 sold 25 units
Delco uses the perpetual inventory accounting system. If Delco uses the average-cost inventory costing method, what is their ending inventory at June 30th? (Points : 1)
$280 $302 $295 $292
Question 11.11.Monroe Company invested $15,000 of cash in equipment with a useful life of 10 years. This transaction caused Monroe Companys debt ratio to ________. (Points : 1)
decrease increase double have no effect
Question 12.12.Watkins Co. sells oil, lubricants, and other petroleum products. In the previous year, they had sales of $550,000, cost of goods sold of $302,500, and operating expenses of $175,000. The inventory balance on January 1, 20X2 was $150,000. Ending inventory on December 31st, 20X2 was $172,000. The average number of days that inventory is held by Watkins Co. is ________ (rounded). (Points : 1)
194 181 207 237
Question 13.13.Which of the following isNOTa method used by both IFRS and GAAP for assigning costs to inventory? (Points : 1)
Both methods define inventory as any items that a company holds and owns for sale. Both methods include in inventory any costs incurred that are necessary to bring the item up to condition for sale. Both methods prohibit the use of LIFO for calculating inventory costs. Both methods enable companies to use specific identification when it comes to assigning costs to inventory.
Question 14.14.According to IFRS, the bottom line of the income statement is referred to as ________. (Points : 1)
profit net income or loss liabilities expenses
Question 15.15.IFRS and GAAP differ from one another in terms of the closing process in which of the following areas? (Points : 1)
the way closing entries are posted to the ledger the way assets and liabilities are reported the way owners withdrawals are reported the way expenses are posted to the ledger