QUESTIONS (12 Marks) 1. Acompany's depreciation expense is $15,000. Its beginning inventory balance is $134,000 and ending balance for the year is $145,000 respectively. What is the cash paid for depreciation: A. SO B. $15,000 C. $11,000 D. $26,000 2. A company purchases a $300,000 building, paying $200,000 in cash and signing a $100,000 promissory note. What will be reported on the statement of cash flows as a result of this transaction? A. A $300,000 cash outflow for investing activities B. A $200,000 cash outflow for investing activities and a $100,000 cash inflow is recorded for financing activities C. A$200,000 cash outflow for investing activities D. A$300,000 cash outflow for investing activities and a $100,000 cash inflow is recorded for financing activities 3. A company purchased $6,000 of merchandise. Transportation costs were an additional $100. The company later returned $250 of the merchandise and paid the invoice within the 2% discount period. What is the total amount of cash paid? A. $5,733 B. $6.100 C$5.735 D. $5,730 4. The perpetual inventory method of tracking Inventory is considered superior to the periodic method because the perpetual method: A. makes calculations easier and less technology can be deployed. B. tells what inventory a company should have at any point in time. C. saves a company from ever having to count the goods in inventory. D. is more consistent with how companies calculated inventory in the past. 5. The largest source of shrinkage in the retail industry is probably A data entry error B. consumer shoplifting C.theft by suppliers or transportation companies. D. theft by employees. 6. A retailer sells TVs at a selling price of $20,000 on account. The total cost of the inventory sold is $15.000. Under a perpetual inventory system the oumal entries to record the sale will include: A $20,000 will be debited to inventory and $20,000 will be credited to Accounts Payable. B. $20,000 will be debited to Accounts Receivable and $20,000 will be credited to Sales Revenue C. $20,000 will be credited to inventory and $20,000 will be credited to sales revenue. D. $20,000 will be debited to costs of goods sold and $20,000 will be credited to inventory