Which of the following is true with regards to managing the receivables ethically? Select one: a. Overstating Asset is permissible to the company in order to secure loan from financing institution b. Accuracy \& integrity should be prioritized by the accountant c. Integrity can be compromised by the entity for its own interest d. None of the available choices Which of the following is a method to generate cash from accounts receivable before it is due? I. Factoring II. Pledging Select one: a. Neither I nor II b. II only c. I only d. Both I and II Laundry Master Company received $12,000 on August 1, 2020 from a customer for advance laundry service payment. The service will be rendered on the 1st of each month, starting December 1. How much revenue is earned by the end of November 2020 ? Select one: a. $1,000 b. $12,000 c. $4,000 d. 50 Wee's Auto sells 5-year extended warranties to customers on any car sold. Wee sold $35,000 worth of these warranties as separate products on March 1, 2020. How much warranty revenue is earned as of February 28, 2021? Select one: a. $21,000 b. $28,000 c. $35,000 d. $7,000 On December 31,2020 , Mars Company has net accounts receivable of $300,000. Sales amounted to $1,200,000 of which $200,000 are cash sales while the remaining represents net credit sales. Net accounts receivable for 2019 is $200,000. The accounts receivable turnover for Mars Company for year 2020 is: Select one: a. 6 times b. 4 times c. 5 times d. None of the available choices An analysis tool that is used to quickly compare the changes (both in dollars and percentages) in a given financial statement from one period to the next is called: Select one: a. Vertical Analysis b. Diagonal Analysis c. Segment Analysis d. Horizontal Analysis When a corporation reacquired shares at less than average cost per share? Select one: a. The difference is always recorded as credit to Contributed Surplus Account b. Retained Eamings is never reversed c. The difference is sometimes recorded as credited to Contributed Surplus Account d. Retained Eamings is reversed CAP Corporation has 4500 common shares and 700 cumulative and nonparticipating preferred shares with a stated dividend of $3 per share. The board of directors declares a dividend of $5000. The dividend from previous year is not yet paid. How much dividends will be received by the common shareholders? Select one: a. $2,100 b. $800 c. $4,200 d. $2,900 Which ratio is a useful ratio for determining a company's ability to repay its upcoming debts and obligations? Select one: a. Current Ratio b. Gross Profit Margin c. Working Capital d. Quick Ratio In which financial statements does Income Summary appear? Select one: a. Balance Sheet b. Income Statement c. Statement of changes in equity d. It does not appear in any financial statement During 2020, Jinx Corporation recorded net credit sales of $800,000 and inventory of $500,000. The accounts receivable at the beginning of the year was $100,000 and at the end of the year was $150,000. What was the dayssales-outstanding ratio for the year? Select one: a. 91 days b. 57 days c. 45 days d. 68 days Venus Company plans to pay its staff a bonus equal to 5% of the company's net income. Venus estimates to earn an income of $280,000. Record the employee bonus payable. Select one: a. Debit Employee Bonus Expense $7,000, Credit Accounts Payable $7,000 b. Debit Employee Bonus Payable $7,000, Credit Accounts Payable $7,000 c. Debit Employee Bonus Expense $14,000, Credit Employee Bonus Payable $14,000 d. Debit Employee Bonus Payable $14,000, Credit Cash $14,000
