The following are all expenses except (A) depreciation (B) advertising (C) cost of goods sold (D) dividends (E) income taxes 22 Which of the following accounts is used and found on financial statements prepared using the accrual basis of accounting but not used and found on financial statements using the the cash basis of accounting? -( A) Unearned revenues (B) Wages payable (C) Accounts receivable expense (D) Prepaid services (E) all of the above destroyed bya tomado on March 1 23 Which of the following does not effect Stockholder's Equity? (A) Investments by owner(s) (B) Payment of a liability (C) Incurring an expenser (D) Declaration of a Cash Dividend (E) all of the above effect stockholder's equity The Robert Edward Company sells $2,500 worth of merchandise on March 17. The credit terms are 2/10, n/30. If customer pays on March 30, the cash discount is? 50 (A) 250 (B) 750 (C) (D) (E) none of the above Which of the following is an example of a deferral? (A) A customer collection received in advance (B) Estimated income tax for the year (C) interest expense incurred buy not yet paid (D) Fees earned but not yet collected (E) The sale of merchandise on credit 26 Which of the following is an example of an accrual? (A) Equipment purchased to be used in the business (B) Fees collected but not yet earned (C) interest earned but not yet received (D) Six months rent paid in advance (E) The recognition of Depreciation expense OF 28 compu ning fnveatory hed 27 A company's warehouse was destroyed by a tornado on March 15. The following information was the only information that was salvaged: $28,000 Inventory, beginning $17,000 Purchases for the period $55,000 Sales for the period $700 Sales returns for the period The company's average gross profit ratio is 35%. FIFO Co Tlow What is the estimated cost of the lost inventory? $9,705 (A) $25,995 (B) $29,250 (C) $44,000 (D) ar comc $45,000 (E) Seld ba o