The average inventory of Dyer Ltd for year ended 31 December 2016 was $70 000. The number of days' inventory on hand was 91.25 days. What was the cost of goods sold for the year?

Select one:

a. $259 000

b. $280 000

c. cannot be determined from the information provided

d. none of the above

Copy Kitty Ltd leases a copying machine on a monthly basis. The lease agreement requires a fixed rental fee each month in addition to a charge per copy. In September, Copy Kitty paid $162 for rent and 2400 copies. In October, Copy Kitty paid $195 for rent and 3500 copies. What is Copy Kitty's variable cost per copy?

Select one:

a. $0.06

b. $0.04

c. $0.03

d. $0.01

Hard-up Ltd has a current ratio of 0.75. Its current liabilities amount to $200 000. It borrows $75 000 from a finance company, repayable in 5 years. What is the current ratio following the loan?

Select one:

a. 0.818

b. 1.125

c. cannot be determined from the above information

d. none of the above

Which of the following statements regarding Work-In-Process account is correct?

Select one:

a. Work-In-Process is partially completed inventory

b. Work-In-Process consists of direct labour, direct material and manufacturing overhead

c. Work-In-Process is debited as product costs are incurred

d. All of the above are correct

Which of the following items is a liability?

Select one:

a. Loan guarantee

b. Accumulated depreciation

c. Allowance for doubtful debs

d. Bank overdraft

Which of the following is NOT an essential characteristic of an asset?

Select one:

a. it must be legally owned by the entity

b. the entity must have control over the asset

c. the transaction giving the entity control over the asset must have occurred

d. none of the above; all are essential characteristics