Which of the following companies (all U.S. companies except for Lego, which is a Danish company) would most likely capitalize the costs of developing a prototype?

Multiple Choice

• Lego
• Southwest Airlines
• Walmart
• Cedar Fair

Which of the following accounts has a normal credit balance?

Multiple Choice

• Accounts Receivable
• Equipment
• Utilities Expense
• Deferred Revenue

All of the following bank reconciliation items would result in a journal entry on the company's books except:

Multiple Choice

• interest earned.
• outstanding checks.
• service charge.
• EFT received from a customer.

When inventory is sold, the cost of the inventory is removed from inventory and reported on a multistep the income statement as:

Multiple Choice

• inventory expense.
• cost of goods sold.
• selling, general, and administrative expenses.
• operating expenses.

A lower of cost or market write-down would be recorded with a debit to Cost of Goods Sold.

True or False

If inventory is sold with terms of FOB shipping point, the goods belong to the customer while in transit.

Group starts

True or False

Under the allowance method for uncollectible accounts, the write-off of a specific account will not affect total assets.

True or False

Which of the following companies (all U.S. companies except for Lego, which is a Danish company) would most likely capitalize the costs of developing a prototype?

Multiple Choice

• Lego
• Southwest Airlines
• Walmart
• Cedar Fair