Question 31. Hansel Electronics has the following: Units Unit Cost Inventory, January 1st 5,000 $9,20 per unit Purchase, April 2nd 15,000 $10,00 per unit Purchase, August 28th 20,000 $12,00 per unit If Hansel Electronics has 9,000 units available on hand on December 31st, 20X1, the cost of the ending inventory under the weighted-average cost per unit method is:

a. $87,000.

b. $90,500.

c. $94,600.

d. $98,100.

32

Question 32. In periods of falling prices, the First-in, first-out (FIFO) method will predetermine, if it is applied:

a. higher net income than LIFO method.

b. the same net income as LIFO method.

c. lower net income than LIFO method.

d. higher net income than average-cost method.

33

Question 33. An account Accumulated Depreciation is:

a. a contra asset account.

b. an expense account.

c. an owners equity account.

d. a liability account.

34

Question 34. Falk Companys ending inventory is overstated (overvalued) by $5,000. The effects of this accounting error on the current years cost of goods sold and net income, respectively, are the following:

a. understated, overstated.

b. overstated, understated.

c. overstated, overstated.

d. understated, understated

35

Question 35. Additions to plant assets, substantially improving plant assets, are:

a. revenue expenditures.

b. debited to the Maintenance and Repairs Expense account.

c. debited to the Purchases account.

d. capital expenditures.

36

Question 36. On April 1st, Erwin Danielle Company purchased a tract of land as a factory site for $500,000. An old building on the site was razed, and materials salvaged from the demolition were sold. Additional costs incurred and salvage proceeds realized during April were as follows: Description Amount ($) Costs to raze an old building $60,000 Legal fees for the purchase contract and the record of ownership $15,000 Title guarantee insurance $24,000 Proceeds received from the sale of salvaged materials $9,000 In its April 30th Balance sheet, what amount should Erwin Danielle Company represent as land? Select the correct answer:

a. $524,000

b. $551,000

c. $590,000

d. $599,000

37

Question 37. Credits to accounts:

a. increase both assets (and expenses) and liabilities (and revenues).

b. decrease both assets (and expenses) and liabilities (and revenues).

c. increase assets (and expenses) and decrease liabilities (and revenues).

d. decrease assets (and expenses) and increase liabilities (and revenues).

38

Question 38. Accounts that normally have debit balances during the reporting period, are:

a. assets, expenses, and revenues accounts.

b. assets, expenses, and owners capital accounts.

c. assets, liabilities, and owners drawings accounts.

d. assets, owners drawings, and expenses accounts.

39

Question 39: The expanded accounting equation is:

a. Assets + Liabilities = Owners Capital + Owners Drawings + Revenues + Expenses.

b. Assets = Liabilities + Owners Capital + Owners Drawings + Revenues Expenses.

c. Assets = Liabilities Owners Capital Owners Drawings Revenues Expenses.

d. Assets = Liabilities + Owners Capital Owners Drawings + Revenues Expenses.

40

Question 40. Bennie Razor Company has decided to sell one of its old manufacturing machines on December 1st, 2021. The machine was purchased for $110,000 on January 1st, 2016, and was systematically depreciated on a straight-line basis for 10 years of useful life assuming $20,000 salvage value. If the machine was sold for $66,700 on December 1st, 2021, what was the amount of the gain or the loss recorded at the time (date) of the sale?

a. $10,700.

b. $9,950.

c. $11,950.

d. $29,950.