this is a final exam pleaselook over it and help me out

1.Inventory for a merchandising business is classified as a(n): A. part of Stockholders' Equity. B. liability. C. asset. D. revenue. 2.If there is a difference between the physical count and the perpetual record, the account in which the difference is recorded is: A. Cost of Goods Sold. B. Revenue. C. Sales. D. Inventory Expense. 3.A company uses the perpetual inventory system. At year end the general ledger indicated that this company had a balance of $47,000 in the Inventory account. Actual inventory on hand per a physical count was $48,500. What action does the company now need to take? A. No action is needed; the difference between the ledger and actual is less than 5%. B. The company needs to debit Cost of Goods Sold and credit Inventory, $1,500. C. The company needs to debit Inventory and credit Cost of Goods Sold for $1,500. D. The company should debit the Purchases account and credit Cost of Goods Sold. 4.Woods Company had an inventory balance of $4,200 on January 1. During the accounting period they made purchases of $12,500. The ending inventory balance was $2,250. If Woods Co. uses the periodic inventory system, what is the cost of inventory sold during the period? A. $14,450 B. $12,500 C. $16,700 D. $18,950 5.Smith Company had an inventory balance of $13,000 on January 1 and $16,000 on December 31. The cost of goods sold during the period was $60,000. What is the purchase amount? A. $44,000 B. $31,000 C. $63,000 D. $62,000 6.The amount of an invoice is $1,000, with terms 2/10, n/30. The amount to be paid within the discount period is: A. $700. B. $980. C. $1,000. D. $900. 7.Which of the following credit terms allows a discount of 4% if payment is made within 20 days of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from the date of the invoice? A. 4/EOM, n/30 B. 4/20, EOM C. 4/20, n/30 D. 20/4, n/30 8.Charmed, Inc. purchased merchandise from Birch Co. for cash. The journal entry for Charmed, Inc. under a perpetual inventory system will be: A. debit Inventory; credit Cash. B. debit Inventory; credit Accounts PayableBirch Co. C. debit Cash; credit Inventory. D. debit Inventory; credit Accounts ReceivableBirch Co. 9.Under the perpetual inventory system, the account to which purchased goods are recorded is: A. Inventory as a debit. B. Purchases as a credit. C. Purchases as a debit. D. Cost of Goods Sold as a debit. 10.Sydney, a customer, purchased $350 of merchandise from Illusions, Inc. Under the perpetual inventory system, Illusions, Inc. will record a: A. credit to Cost of Goods Sold for $350. B. debit to Accounts Receivable or to Cash for $350. C. credit to Accounts Receivable or to Cash for $350. D. debit to Sales for $350. 11.Under a perpetual inventory system, when goods are returned to the retailer from a customer: A. Sales is debited; Cost Goods Sold is credited. B. Cost of Goods Sold is debited; Sales Returns and Allowances is credited. C. Sales Returns and Allowances is debited; Cost of Goods Sold is credited. D. Inventory is debited; Sales is credited. 12.Sales is a(n) ________ account. A. liability B. contraminus C. asset D. revenue 13.When a retailer sells merchandise on account, the general entry for the sales price would be: A. debiting Accounts Receivable and crediting Cost of Goods Sold. B. debiting Accounts Receivable and crediting Sales Revenue. C. debiting Cost of Goods Sold and crediting Sales Revenue. D. debiting Accounts Receivable and crediting Inventory. 14.The entry to record the company's cost of selling merchandise under a perpetual inventory system would be a: A. debit to Inventory and a credit to Cost of Goods Sold. B. debit to Accounts Receivable and a credit to Sales. C. debit to Cost of Goods Sold and a credit to Inventory. D. debit to Cost of Goods Sold and a credit to Sales. 15.Net sales is computed by taking: A. Gross Sales + Sales Returns and Allowances + Sales Discounts. B. Gross Sales minus Sales Returns and Allowances + Sales Discounts. C. Gross Sales minus Sales Returns and Allowances minus Sales Discounts. D. Gross Sales minus Cash received for sales. 16.Which of the following indicates that the shipment is free on board and the buyer pays all of the shipping and freight costs? A. FOB destination B. 2/10, n/30 C. FOB shipping point D. Cash on delivery 17.A company has net sales of $137,000, cost of goods sold of $82,000, operating expenses of $39,000, and other expenses of $3,000. The company's net income is: A. $13,000. B. $16,000. C. $55,000. D. $52,000. 18.Kramer and Associates has the following account balances listed in alphabetical order: Accumulated Depreciation, $23,000; Accounts Payable, $8,500, Accounts Receivable, $10,000; Cash, $3,000; Equipment, $41,000, Land, $22,000, Mortgage Payable, $42,000; Prepaid Insurance, $9,500; Supplies, $1,000; Unearned Revenue, $4,000; Wages payable, $2,000. Kramer and Associates' current assets are: A. $63,500. B. $14,000. C. $23,500. D. $13,000. 19.What is liquidity? A. Liquidity is gross profit minus operating expenses. B. Liquidity is a shipping term that applies to freight sent by boat. C. Liquidity is the ability to convert an asset to cash quickly. D. Liquidity is a measure of the fragility of certain types of inventory. 20.The Cost of Goods Sold account appears on the: A. Income Statement. B. postminusclosing trial balance. C. Statement of Retained Earnings. D. Balance Sheet. 21.Under the specificidentification method, the flow of costs through the accounting records will: A. be nearly the opposite of the physical flow of goods through the business. B. closely match the physical flow of goods through the business. C. exactly match the physical flow of goods through the business. D. have no relationship to the physical flow of goods through the business. 22.Under the average cost method, the flow of costs through the accounting records will: A. be nearly the opposite of the physical flow of goods through the business. B. closely match the physical flow of goods through the business. C. exactly match the physical flow of goods through the business. D. have no relationship to the physical flow of goods through the business. 23.A method of valuing inventory based on the assumption that the oldest goods will be sold first is called the: A. LIFO method. B. FIFO method. C. average cost method. D. specificunitcost method. 24.Inventory is shown on the: A. Income Statement before gross profit. B. Balance Sheet as a longterm asset. C. Income Statement after gross profit. D. Balance Sheet as a current asset. 25.The journal entry to record the purchase of $7,500 of inventory on account under the perpetual inventory system is: A. debit Purchases, $7,500; credit Accounts Payable, $7,500. B. debit Inventory, $7,500; credit Accounts Payable, $7,500. C. debit Inventory, $7,500; credit Cash, $7,500. D. debit Cost of Goods Sold, $7,500; credit Inventory, $7,500. 26.liberty, Inc. has the following list of inventory: Item Unit Cost Selling Price ELF $13,287 $20,342 ICF $6,760 $7,214 CKS $18,282 $19,723 PCC $9,434 $11,234 CRD $27,464 $33,419 Under specificidentification, what is Liberty's cost of goods sold if ICF and CRD were not sold during the current period? A. $34,224 B. $41,003 C. $51,299 D. $40,633 27.Lionworks Enterprises had the following inventory data: Date Quantity Unit Cost July 1 Beginning inventory 5 $49 July 4 Purchase 10 $57 July 7 Sale 12 July 11 Purchase 9 $54 July 14 Sale 8 Assuming FIFO, what is the cost of goods sold for the July 7 sale? A. $588 B. $644 C. $652 D. $668 28.Lionworks Enterprises had the following inventory data: Date Quantity Unit Cost July 1 Beginning inventory 5 $51 July 4 Purchase 10 $53 July 7 Sale 12 July 11 Purchase 9 $54 July 14 Sale 8 Assuming LIFO, what is the cost of goods sold for the July 7 sale? (Round your final answer to the nearest dollar.) A. $632 B. $636 C. $628 D. $626 29.Lionworks Enterprises had the following inventory data: Date Quantity Unit Cost July 1 Beginning inventory 5 $52 July 4 Purchase 10 $58 July 7 Sale 12 July 11 Purchase 9 $57 July 14 Sale 8 Assuming average cost, what is the cost of goods sold for the July 7 sale? (Round any intermediary calculations to the nearest cent and round your final answer to the nearest dollar.) A. $660 B. $684 C. $672 D. $666 30.Lionworks Enterprises had the following inventory data: Date Quantity Unit Cost July 1 Beginning inventory 5 $48 July 4 Purchase 10 $53 July 7 Sale 12 July 11 Purchase 9 $56 July 14 Sale 8 Assuming LIFO, what is the ending inventory after the July 14 sale? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A. $200 B. $192 C. $224 D. $214 31.Which inventory costing method results in the oldest costs in ending inventory? A. AverageIn, FirstOut B. FirstmIn, FirstOut C. Average cost D. LastIn, FirstOut 32.If shrinkage is found for $400, an adjusting entry would be made as follows: A. debit Sales Returns and Allowances for $400; credit Inventory for $400. B. debit Inventory for $400; credit Sales Returns and Allowances for $400. C. debit Inventory for $400; credit Cost of Goods Sold for $400. D. debit Cost of Goods Sold for $400; credit Inventory for $400. 33.Footnotes are used with what concept or principle of accounting? A. Consistency B. Full disclosure C. Conservatism D. Materiality 34.Which of the following would cause inventory shrinkage? A. Spoilage of items B. Spills of items C. Employee theft D. All of the above 35.Which of the following would NOT cause an error in the physical inventory count on December 31? A. Counting inventory purchased that was shipped by the supplier FOB shipping point on December 31 B. Double counting an aisle of product C. Forgetting to tag a section of inventory D. Counting inventory purchased that was shipped by the supplier FOB destination on December 31 36.The government agency that approves U.S. GAAP is the: A. Senate. B. Securities and Exchange Commission. C. Department of Commerce. D. Department of the Treasury. 37.The process CPAs use to confirm that financial reports conform to GAAP is known as a(n): A. examination. B. review. C. audit. D. confirmation. 38.Internal control is a comprehensive system that helps an organization do all of the following EXCEPT: A. operate efficiently and effectively. B. safeguard assets. C. ensure compliance with applicable laws and regulations. D. safeguard liabilities. 39.An audit trail: A. consists of business documents and records that provide evidence of transactions. B. limits the number of employees who have access to company assets. C. requires the use of security cameras and alarm systems. D. requires employees to take an annual vacation. 40.Embezzlement usually involves the misappropriation of business: A. assets by an employee. B. equity by an employee. C. information by an employee. D. liabilities by an employee. 41.The audit opinion issued when there are material misstatements in the financial statements is the: A. unqualified opinion. B. qualified opinion. C. disclaimer of opinion. D. adverse opinion. 42.The audit opinion issued when the financial statements are fairly presented without exception is the: A. adverse opinion. B. qualified opinion. C. unqualified opinion. D. disclaimer of opinion. 43.The audit opinion issued when the auditors are unable to express an opinion is the: A. disclaimer of opinion. B. adverse opinion. C. qualified opinion. D. unqualified opinion. 44.The audit opinion issued when the auditors are taking exception to a specific treatment of accounting information is the: A. unqualified opinion. B. adverse opinion. C. disclaimer of opinion. D. qualified opinion. 45.Another name for a "clean" audit opinion is a(n): A. unqualified opinion. B. adverse opinion. C. qualified opinion. D. disclaimer of opinion. 46.To prevent a second payment for an invoice, the check signer should ________ the documents relating to the transaction. A. sign B. file C. deface D. throw away 47.A bank statement shows the: A. ending book balance as of a specific date. B. book errors as of a specific date. C. reconciled balance as of a specific date. D. ending bank balance as of a specific date. 48.Deposits in transit are: A. added to the book balance. B. added to the bank balance. C. subtracted from the book balance. D. subtracted from the bank balance. 49.The bank recorded a $49 deposit as $66. On a bank reconciliation this error would be corrected by: A. subtracting $17 from the bank balance. B. adding $17 to the book balance. C. adding $17 to the bank balance. D. subtracting $17 from the book balance. 50.On a bank reconciliation, outstanding checks are: A. subtracted from the bank balance. B. subtracted from the book balance. C. added to the bank balance. D. added to the book balance. 51.A $575 collection on a note from a customer was reflected on Ronaldo Co's bank statement. When doing the bank reconciliation, Ronaldo Co. should: A. subtract $575 from their book balance. B. add $575 to their book balance. C. add $575 to the bank balance. D. subtract $575 from the bank balance. 52.Illusions, Inc. deposited $1,000 into its bank account at the end of the month, but the bank statement does not show the deposit. This $1,000 is an example of a(n): A. deposit in transit. B. outstanding check. C. bank collection. D. bank error. 53.Northwest Plumbing's bank statement shows a bank balance of $43,667. The statement shows a bank service charge of $95. Northwest Plumbing's book balance shows outstanding checks of $5,292 and deposits in transit of $9,325. The adjusted balance on the bank side of the reconciliation would be: A. $43,572. B. $39,634. C. $43,667. D. $47,700. 54.Cesario Auto's bank statement shows a bank balance of $43,567. The statement shows a bank service charge of $20 and a note collection of $840 on Cesario Auto's behalf. Cesario Auto's book balance should be adjusted by a total of: A. $820. B. +$840. C. +$820. D. +$860. 55.During a bank reconciliation, Bach Inc. discovered a NSF check from their customer, Larry Bobble for $70. The journal entry required to update the cash balance would be: A. Debit Accounts Receivable long dash L. Bobble, credit Cash B. Debit Accounts Receivable, credit Cash C. Debit cash, credit Accounts Receivable D.No journal entry is required. 56.Cash equivalents are: A. not liquid and carry little risk. B. very liquid and carry little risk. C. very liquid and carry high risk. D. not liquid and carry high risk. 57.What type of account is Allowance for Doubtful Accounts? A. An expense account B. A revenue account C. A contraasset account D. A contraliability account 58.The end of period adjusting entry for bad debt expense under the allowance method is: A. Cash, debit; Accounts Receivable/customer name, credit. B. not required. C. Bad Debt Expense, debit; Accounts Receivable/customer name, credit. D. Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit. 59.The journal entry to write off a customer's account under the allowance method is: A. Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit. B. not required. C. Bad Debt Expense, debit; Accounts Receivable/customer name, credit. D. Allowance for Uncollectible Accounts, debit; Accounts Receivable/customer name, credit. 60.A company has $275,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7,550 credit balance. If the company estimates 5% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts? A. $21,300 B. $13,750 C. $6,200 D. $7,550 61.Charmed, Inc. had credit sales for the period of $144,000. The balance in Allowance for Doubtful Accounts is a debit of $653. If Charmed estimates that 3% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts? A. Debit Bad Debt Expense, $4,973; credit Allowance for Uncollectible Accounts, $4,973. B. No entry is required. C. Debit Bad Debt Expense, $4,320; credit Allowance for Uncollectible Accounts, $4,320. D. Debit Bad Debt Expense, $3,667; credit Allowance for Uncollectible Accounts, $3,667. 62.Robbins Company has given you the following information from its aging of Accounts Receivable. Using this information, determine the amount of the journal entry to record the estimated uncollectible accounts. Current $24,800 1% uncollectible 31minus60 days 7,100 9% uncollectible 61minus90 days 4,000 19% uncollectible 91 and up 1,900 34% uncollectible The current balance in Allowance for Doubtful Accounts is a $938 credit. A. $1,355 B. $2,293 C. $938 D.$3,231 63.When using the allowance method for uncollectible accounts, the percentofsales method is called the: A. Balance Sheet approach. B. Income Statement approach. C. direct writeoff approach. D. allowance approach. 64.How are net realizable receivables calculated? A. Accounts Receivable plus the Allowance for Doubtful Accounts B. Accounts Receivable divided by the Allowance for Doubtful Accounts C. Accounts Receivable less the Allowance for Doubtful Accounts D. Allowance for Doubtful Accounts plus NSF checks 65.Using a 365day year, the maturity value of a 180day note for $3,000 at 9% annual interest is: (Do not round any intermediary calculations. Round your final answer to the nearest cent.) A. $3,133.15. B. $270.00. C. $133.15. D. $2,866.85. 66.On September 1, 2013, Sharp Corp. lent $2,400 to Marla Smith on a 6month 4% promissory note. The journal entry to record the note for Sharp Corp. would be to: A. debit Note Receivable/M Smith, $2,448; credit Cash, $2,448. B. debit Note Receivable/M Smith, $2,400; credit Cash, $2,400. C. debit Note Receivable/M Smith, $48; credit Interest Income, $48. D.debit Cash, $2,400; credit Note Payable/M Smith, $2,400. 67.On August 9, Alice paid $3,568 to Cyrus Corp. to fulfill her promissory note agreement. Of the $3,568, $400 is interest. The journal entry Cyrus Corp. will record is to: A. debit Cash, $3,568; credit Note Receivable/Alice, $3,168; credit Interest Revenue, $400. B. debit Note Receivable/Alice, $3,568; credit Cash $3,168; credit Interest Revenue, $400. C. debit Cash, $3,568; credit Note Receivable/Alice, $3,568. D. debit Note Receivable/Alice, $3,568; credit Cash $3,568