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)

materiality concept consistency principle disclosure principle conservatism concept

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)

perpetual periodic specific-unit-cost merchandising

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 31^st, 20X2. The note receivable is due on January 15^th, 20X4. The note payable is due on December 1^st, 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 30^th? (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 31^st, 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