Question 36 (1 point) A merchandising transaction includes the following: Terms FOB Shipping Point. The seller pays the shipping costs and sends the bill to the buyer. What account would the seller most likely debit? a) Freight Expense Ob) Accounts Receivable O c) Cost of Goods Sold d) Inventory e) Accounts Payable Question 37 (1 point) If a company (using the percent of sales method to calculate bad debt) fails to make an adjusting entry to estimate uncollectible accounts, then this: Question 37 (1 point) If a company (using the percent of sales method to calculate bad debt) fails to make a) Understates Profit Ob) Understates the net realizable value of the accounts receivable O c) Overstates the net realizable value of the accounts receivable d) Overstates Expenses Question 38 (1 point) Using only the following merchandising information, calculate the Net Profit: Net Sales $230,000, Cost of Goods Sold (COGS) $140,000, and Depreciation Expense $20,000. Question 38 (1 point) Using only the following merchandising information, calculate the Net Profit: Net Sales $230,000, Cost of Goods Sold (COGS) $140,000, and Depreciation Expense $20,000. a) $70,000 Ob) $60,000 Oc) $50,000 d) $40,000 Question 39 (1 point) The book value of a capital asset can be used to calculate: d) $40,000 Question 39 (1 point) The book value of a capital asset can be used to calculate: a) The approximate age of a capital asset b) The depreciation cost for assets where larger amounts of depreciation are recognized in the early periods of an assets life rather than are recognized in the later periods of an asset's useful life Oc) All of the answers Od) The relationship between capital assets and their annual use Question 40 (1 point) Your month-end bank statement includes one of your cheques written by your company to pay for something you did not authorize. You: a) Fire the bookkeeper Question 40 (1 point) Your month-end bank statement includes one of your cheques written by your company to pay for something you did not authorize. You: a) Fire the bookkeeper Ob) Insist your staff take vacation O c) Contact the bank and have them fix this at their end d) Re-evaluate your company's control processes Question 41 (1 point) The purpose of depreciation accounting is to: a) Allocate a capital asset's cost, less its salvage value, to expense over the accoucou Question 41 (1 point) The purpose of depreciation accounting is to: a) Allocate a capital asset's cost, less its salvage value, to expense over the O b) Accumulate funds to replace a plant asset at the end of its useful life Oc) Have a plant asset's book value equal its initial cost by the end of its useful d) Reflect changes in the current market value of a plant asset over its useful life Previous Page Next Page Page 11 of 11 2 of 41 questions saved