Question 21. Cost of goods available for sale consists of two elements: beginning inventory and (plus):

a. ending inventory (inventory at end of the period).

b. cost of goods purchased over the period.

c. cost of goods sold over the period.

d. All of the answer choices are correct.

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Question 22. The correct order of presentation in a classified balance sheet for the following current assets is: a. accounts receivable, cash, prepaid insurance, inventory.

b. cash, inventory, accounts receivable, prepaid insurance.

c. cash, accounts receivable, inventory, prepaid insurance.

d. inventory, cash, accounts receivable, prepaid insurance.

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Question 23. Which types of accounts will appear in the post-closing trial balance?

a. Permanent (real) accounts.

b. Temporary (nominal) accounts.

c. Accounts, shown in the income statement columns of a worksheet.

d. None of these answer choices is correct.

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Question 24. An account that will have zero balance after the closing entries are journalized and posted, is:

a. an account for Revenues from Sales of Goods.

b. an account for Equipment.

c. an account for Prepaid Insurance.

d. an account for Accumulated Depreciation of Equipment.

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Question 25. When a net income (profit) has occurred as a final result for the period, to close (zero) the Income Summary account at the end of the period, the Income Summary account should be:

a. debited and the Retained Earnings account credited.

b. credited and the Retained Earnings account debited.

c. debited and the Owners Drawings account credited.

d. credited and the Owners Drawings account debited.

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Question 26. When Lopez Company purchased supplies worth $900 paid in cash, it was incorrectly recorded a credit to an account Supplies $9,000, and a debit to an account Cash $9,000. Before correcting this accounting error:

a. Cash is overstated and Supplies overstated.

b. Cash is understated and Supplies understated.

c. Cash is understated and Supplies overstated.

d. Cash is overstated and Supplies understated.

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Question 27. In a classified balance sheet, assets are usually classified using the following categories:

a. current assets; long-term assets; property, plant, and equipment; and intangible assets.

b. current assets; long-term investments; property, plant, and equipment; and tangible assets.

c. current assets; long-term investments; tangible assets; and intangible assets.

d. current assets; long-term investments; property, plant, and equipment; and intangible assets.

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Question 28. Norton Company has purchased 1,000 widgets over the period at $91 cost per unit. Norton Company has 200 widgets of the type in its ending inventory at $91 cost per unit each and a net realizable value of $80 each (per unit). The value of ending inventory (available on hand at the end of the period) determined under the rule of the lower-of-cost-or-net realizable value is:

a. $91,000.

b. $80,000.

c. $18,200.

d. $16,000.

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Question 29. The loss of impairment of the widgets on hand at the end of the period incurred by Norton Company, amounts to (See Question 28):

a. $11,000

b. $2,200

c. $8,800

d. No loss of impairment arises.

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Question 30. Poppins Company has the following during year 20X2: Units (Quantities) Unit Cost Inventory, January 1st units 8,000 on hand at $11 per unit Purchase, June 19th units 13,000 purchased at $12 per unit Purchase, November 8th units 5,000 purchased at $13 per unit If 9,000 units are on hand on December 31st 20X2, the cost of the inventory consumed for manufacturing purposes and/or sold over the period, under the First-in, first-out (FIFO) method equals:

a. $208,000.

b. $201,000.

c. $196,000.

d. $113,000.