QUESTION 25

1. The inventory data for an item sold by Right Co. for March is as follows: Mar. 1 30 units at $25 each

   12 Purchase 36 units at $26 each

   28 Purchase 25 units at $27 each

   Mar. 31 Ending Inventory 34 units

   Using the last-in, first-out (LIFO) method, what is the cost of goods sold that Right should include on its March income statement?

   	1.	$1,452
   	2.	$1,507
   	3.	$909
   	4.	$854

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QUESTION 26

1. The inventory data for an item sold by Right Co. for March is as follows: Mar. 1 30 units at $25 each

   12 Purchase 36 units at $26 each

   28 Purchase 25 units at $27 each

   Mar. 31 Ending Inventory 34 units

   Using the average cost inventory cost flow method, what is the value of the ending inventory on Right's balance sheet at March 31 (round to the nearest dollar)?

   	1.	$1,452
   	2.	$882
   	3.	$854
   	4.	$909

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QUESTION 27

1. In period of rising prices, the inventory method that will result in the highest gross profit and net income is:

   	1.	FIFO
   	2.	LIFO
   	3.	Average cost
   	4.	There is not enough information to answer this question.

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QUESTION 28

1. A company bought and sold scarves Use this data to calculate the cost of goods sold expense using the FIFO method.

   September 1	Beginning Inventory	1 units at $40 each
   September 10	Purchase	1 units at $45 each
   September 20	Purchase	1 units at $50 each
   September 30	Ending Inventory	2 units

   		$50
   		$45
   		$95
   		$40

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QUESTION 29

1. A company bought and sold scarves Use this data to calculate the ending inventory on the balance sheet using the LIFO method.

   September 1	Beginning Inventory	1 units at $40 each
   September 10	Purchase	1 units at $45 each
   September 20	Purchase	1 units at $50 each
   September 30	Ending Inventory	2 units

   		$50
   		$45
   		$95
   		$85

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QUESTION 30

1. Which financial statement would present bad debt expense?

   		Income statement
   		Balance sheet
   		Statement of retained earnings

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QUESTION 31

1. What is the accounting equation?

   		Assets = Liabilities + Owners' Equity
   		Assets = Equity
   		Assets = Liabilities minus Owners' Equity
   		There is no accounting equation

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QUESTION 32

1. A 60-day, 10% note for $60,000 dated January 12 is received from a customer on account. Assuming 360 days per year, interest on the note would be:

   		$6,000
   		$3,000
   		$1,000
   		$1,667

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QUESTION 33

1. A 60-day, 10% note for $60,000 dated April 12 is received from a customer on account. The maturity date if the note is:

   		June 10
   		June 11
   		June 12
   		June 9