Download Take Test: Quiz - 2 Chapters 4 to 7 – (Spring 2016) ACC

Take Test: Quiz - 2 Chapters 4 to 7 – (Spring 2016) ACC ...
! 7:56 ،2016/2/21
Take Test: Quiz - 2 Chapters 4 to 7
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Multiple Attempts This test allows 2 attempts. This is attempt number 1.
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QUESTION 1
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A company had inventory on November 1 of 22 units at a cost of $26 each. On November 2, they
purchased 27 units at $27 each. On November 6, they purchased 23 units at $28 each. On November 8,
25 units were sold for $38 each. Using the LIFO perpetual inventory method, what was the value of the
inventory on November 8 after the sale?
$1,304
$1,269
$1,271
$1,222
$1,247
QUESTION 2
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A company has inventory of 22 units at a cost of $15 each on August 1. On August 5, they purchased 17
units at $13 per unit. On August 12, they purchased 27 units at $28 per unit. On August 15, they sold 44
units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the
sale?
rev: 02_25_2014_QC_45964
$476
$338
$616
$580
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$1,078
QUESTION 3
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A company receives a 6.55%, 60-day note for $10,150. The total amount of cash due on the maturity date
is:
$6,648.2
$39,889.50
$19,944.75
$664.82
$10,260.80
QUESTION 4
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A company receives a 9%, 90-day note for $3,200. The total interest due upon the maturity date is:
$72.0
$288
$32
$320
$720
QUESTION 5
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A company used the percent of sales method to determine its bad debts expense. At the end of the
current year, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable
Allowance for uncollectible accounts
Net sales
281,000 debit
340 credit
1,020,000 credit
All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be
uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is
prepared?
$1,065
$1,405
$2,550
$5,100
$51,000
QUESTION 6
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QUESTION 6
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1 points
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Acme-Jones Corporation uses a LIFO perpetual inventory system.
August 2, 40 units were purchased at $19 per unit.
August 5, 25 units were purchased at $13 per unit.
August 15, 27 units were sold at $55 per unit.
August 18, 30 units were purchased at $14 per unit.
What was the amount of the cost of goods sold?
rev: 10_11_2013_QC_37362
$427.70
$378.00
$432.00
$363.00
$513.00
QUESTION 7
Dell reported net sales of $10,780 million and average accounts receivable of $980 million. Its accounts
receivable turnover is:
.91
11.0
36.4
53.9
3,920
QUESTION 8
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In comparing the canceled checks on the bank statement with the entries in the accounting records, it is
found that check number 4239 for November's rent was correctly written and drawn for $3,810 but was
erroneously entered in the accounting records as $1,380. When reconciling the November bank statement,
the company should:
Deduct $2,430 from the book balance of cash.
Add $2,430 to the bank statement balance.
Add $3,810 to the book balance of cash.
Deduct $2,430 from the bank statement balance.
Add $3,600 to the book balance of cash.
QUESTION 9
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In comparing the canceled checks on the bank statement with the entries in the accounting records, it is
found that check number 2889 for December's utilities was correctly written and drawn for $150 but was
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erroneously entered in the accounting records as $501. The journal entry to adjust the books for the bank
reconciliation would include which of the following for this situation?
$351 decrease to Cash and a $351 decrease to Utility Expense.
$351 increase to Cash and a $351 decrease to Utility Expense.
$191 decrease to Cash and a $191 decrease to Utility Expense.
$191 increase to Cash and a $291 decrease to Utility Expense.
$501 increase to Cash.
QUESTION 10
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On August 1, 2013, Ace Corporation accepted a note receivable in place of an outstanding accounts
receivable in the amount of $138,815. The note is due in 90 days and has an interest rate of 8%. What
would be the appropriate journal entry to record the receipt of cash at the maturity date?
Cash
Note Receivable
Note Receivable
Accounts Receivable
138,815
138,815
138,815
138,815
Note Receivable
Interest Revenue
Cash
138,815
2,776.30
Cash
Interest Receivable
Note Receivable
138,815
2,776.30
Cash
Interest Revenue
Note Receivable
QUESTION 11
141,591.30
141,591.30
141,591.3
2,776.30
138,815
1 points
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On December 31 of the current year, a company's unadjusted trial balance included the following:
Accounts Receivable, debit balance of $114,755; Allowance for Doubtful Accounts, credit balance of
$1,122. What amount should be debited to Bad Debts Expense, assuming 7% of outstanding accounts
receivable at the end of the current year will be uncollectible?
$1,122
$5,789
$6,911
$8,033
$9,155
QUESTION 12
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QUESTION 12
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A company had sales of $697,000 and cost of goods sold of $279,000. Its gross profit equals:
$(418,000)
$697,000
$279,000
$418,000
$976,000
QUESTION 13
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A company has sales of $1,660,000, sales discounts of $118,000, sales returns and allowances of
$139,000, shipping charges of $31,000, sales commissions of $50,000, net income totaled $279,500,
and cost of goods sold of $436,000. What is the net sales amount for the period?
$1,660,000
$1,403,000
$1,917,000
$1,681,000
$1,639,000
QUESTION 14
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A company purchased $1,900 of merchandise on December 5. On December 7, it returned $300 worth
of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the
cash paid on December 8 is:
$300
$1,564
$1,568
$1,600
$1,900
QUESTION 15
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A company purchased $7,900 worth of merchandise. Transportation costs were an additional $120.
The company later returned $1,300 worth of merchandise and paid the invoice within the 2% cash
discount period. The total amount paid for this merchandise is:
$6,585.60
$6,588.00
$7,742.00
$7,862.00
$6,720.00
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QUESTION 16
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1 points
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1 points
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A corporation uses a FIFO perpetual inventory system.
August 2, 31 units were purchased at $18 per unit.
August 5, 16 units were purchased at $19 per unit.
August 15, 18 units were sold at $37 per unit.
August 18, 21 units were purchased at $20 per unit.
What was the amount of the ending inventory for the month of August?
$958
$942
$950
$558
$1,086
QUESTION 17
A good voucher system includes a set of procedures and approvals designed to control cash
disbursements and the acceptance of obligations.
True
False
QUESTION 18
1 points
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A perpetual inventory system continually updates accounting records for inventory transactions.
True
False
QUESTION 19
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After adjustment, the allowance for doubtful accounts has the effect of reducing accounts receivable to
its estimated realizable value.
True
False
QUESTION 20
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Days' sales in inventory:
Is also called days' stock on hand.
Focuses on average inventory rather than ending inventory.
Is used to measure solvency.
Is calculated by dividing cost of goods sold by ending inventory.
Is a substitute for the acid-test ratio.
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QUESTION 21
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Herald Company had sales of $142,000, sales discounts of $2,700 and sales returns of $3,900. Herald
Company's net sales equals:
$6,600
$135,400
$139,300
$142,000
$148,600
QUESTION 22
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1 points
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The inventory turnover ratio:
Is used to analyze profitability.
Is used to measure solvency.
Measures how quickly a company turns over its merchandise inventory.
Validates the acid-test ratio.
Calculation depends on the company's inventory valuation method.
QUESTION 23
There are two methods of accounting for uncollectible accounts: the direct write-off method and the
allowance method.
True
False
QUESTION 24
1 points
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Under the allowance method of accounting for uncollectible accounts receivable, no estimate is made
to predict bad debts expense.
True
False
QUESTION 25
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With credit terms of 2/10, n/30, the seller is offering the purchaser a 2% cash discount if the amount is
paid within 10 days of the invoice date. Otherwise, the full amount is due in 30 days.
True
False
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