Question 2 (1 point) Under the periodic inventory system, the balance in the inventory account during the year reflects: Onone of the available answers are correct. O the expected cost of goods purchased. O the expected cost of goods available for sale. O last year's ending inventory. O the expected inventory that the company should be holding. Mariakani Inc. paid $5,000 during the discount period to settle accounts payable. The terms of the discount were 3/10, n/45. The amount of discount that Mariakani company received was (rounded): O $154.64 one of the available answers are correct O $148.28 O $500.00 O $150.00 Due to the current Covid 19 pandemic, the following would be expected for a wholesaler of goods whose business is suffering during the crisis: O A high days in inventory ratio for toilet paper. O None of the available answers are correct. O A high accounts receivable turnover ratio. O A lower solvency ratio. O A higher TIE ratio (times interest earned). The following information is provided from Malik Corporation's annual report for the years ended December 31: 2019 2018 2017 Sales S120,000 S110,000 $100,000 Cost of goods sold 40,000 34,000 30,000 Gross profit 80,000 76,000 70,000 Operating expenses 48.000 42,000 40.000 Income before taxes 32,000 34,000 30,000 Income tax expense 2,600 10.200 2,000 Net income $22,400 $23,800 $21,000 Using vertical analysis, 2018 Sales would be represented as: 12% 089% O 100% 0 112% None of the available answers are correct Question 7 (1 point) Contingent liabilities such as pending lawsuits: Should only be disclosed in the notes to financial statements if payment for damages is likely and the amount can be reasonably estimated Should always be recorded in the body of financial statements Should be recognized as a liability if payment for damages is unlikely and the amount of liability can be reasonably estimated Should only be disclosed in the notes to financial statements if payment for damages is likely but the amount cannot be reasonably estimated Machakos convenience store chain buys new soda machines for $450,000 and pays $50,000 for installation. One-half of the total cost is paid in cash; the other half is financed. How should Machakos record this transaction? Debit equipment for $450,000, debit expenses for $50,000, credit cash for $250,000, and credit notes payable for $250,000. Debit cash for $250,000, debit notes payable for $250,000 credit equipment for $450,000, and credit expenses for $50,000. Debit equipment for $500,000, credit cash for $250,000, and credit notes payable for $250,000. O None of the available answers are correct. Debit cash for $250,000, debit notes payable for $250,000, and credit