Question 1

Which of the following is not an advantage of LIFO over FIFO?

Accepted Answer

A) lower income taxes 
B) better inventory figure on balance sheet 
C) better matching of revenues and costs on the income statement 
D) cost of goods sold better approximates current replacement cost 
A) lower income taxes 
B) better inventory figure on balance sheet 
C) better matching of revenues and costs on the income statement 
D) cost of goods sold better approximates current replacement cost

Question 2

Allowance for Doubtful Accounts had a beginning and ending balance of $3,500 and $4,600,respectively.If uncollectible accounts expense was $9,500 for the period,the total dollar amount of accounts written off during the period was:

Accepted Answer

A) $13,000 
B) $8,400 
C) $10,600 
D) $ 9,500 
A) $13,000 
B) $8,400 
C) $10,600 
D) $ 9,500

Question 3

If prices don't change over time,what will be the differences between LIFO and FIFO?

Accepted Answer

There will be no differences b

Question 4

The journal entry to remove a specific customer's account,once it is identified as uncollectible,would include a:

Accepted Answer

A) debit to allowance for doubtful accounts 
B) debit to uncollectible accounts expense 
C) debit to accounts receivable 
D) debit to sales revenue 
A) debit to allowance for doubtful accounts 
B) debit to uncollectible accounts expense 
C) debit to accounts receivable 
D) debit to sales revenue

Question 5

Under which costing method is cost of good sold not systematically determined?

Accepted Answer

A) LIFO 
B) FIFO 
C) Average 
D) Specific identification 
A) LIFO 
B) FIFO 
C) Average 
D) Specific identification

Question 6

Graphite Industries sells tennis racquets to sporting goods stores throughout the northeastern U.S.Selected transactions relating to accounts receivable are presented below.Prepare journal entries as appropriate and indicate how each transaction affected the net accounts receivable balance.
Identified the Borg Company account as uncollectible and wrote off the $6,700 balance.
Identified the Connors Company account balance of $2,500 as uncollectible,and wrote it off.
Allowance for Doubtful Accounts had a $1,000 credit balance at December 31,2008 prior to adjustment.An analysis of the accounts receivables indicates that the company expects $19,000 of the receivables will be uncollectible.

Accepted Answer

The answer of Graphite Industries sells tennis racquets to sporting...

Question 7

Use the following to answer questions 
Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June:
  
-The cost of goods sold for the June 16 sale is:

Accepted Answer

A) $780 
B) $755 
C) $715 
D) $650 
A) $780 
B) $755 
C) $715 
D) $650

Question 8

Candle Corporation's adjusted trial balance includes Allowance for Doubtful Accounts at $37,500,Uncollectible Accounts Expense at $18,700,Notes Receivable at $25,000,and Accounts Receivable at $136,800.Net accounts receivable amounts to:

Accepted Answer

A) $ 99,300 
B) $118,000 
C) $124,300 
D) $143,000 
A) $ 99,300 
B) $118,000 
C) $124,300 
D) $143,000

Question 9

Kozicek Corporation reported credit sales of $200,000,accounts receivable of $110,000 at the beginning of the year,and accounts receivable of $150,000 at the end of the year.During the year Kozicek wrote off $10,00 as bad debt.Cash collections from customers during the year were:

Accepted Answer

A) $160,000 
B) $200,000 
C) $300,000 
D) $150,000 
A) $160,000 
B) $200,000 
C) $300,000 
D) $150,000

Question 10

During the current year,cost of goods sold was higher under the LIFO method than under the FIFO method.Which of the following statements about price changes is true?

Accepted Answer

A) Prices were unchanged. 
B) Prices were decreasing. 
C) Prices were increasing. 
D) Unable to determine from the information given 
A) Prices were unchanged. 
B) Prices were decreasing. 
C) Prices were increasing. 
D) Unable to determine from the information given

Question 11

-Prepare all journal entries necessary to record the following transactions of Zion Enterprises for the month of May.
May 4 Sold a $ \$ 2,000 $ rug to Grand \& Associates on account, terms $ 2 / 10, n / 30 $. The rug had a cost of $ \$ 750 $.
7 Received a $ \$ 100 $ deposit from Canyon Industries for a rug which was to be cleaned. An additional balance of $ \$ 100 $ will be collected at the time of pick-up.
11 Sold a rug for $ \$ 1,450 $ cash. The rug had a cost of $ \$ 800 $.
13 Received payment from Grand \& Associates for the rug purchased on May 4th, less the applicable discount.
16 Canyon Industries picked up its cleaned rug and paid the balance due.
18 Sold a $ \$ 4,500 $ rug to Bryce Corporation on account, terms $ 1 / 10, n / 60 $. The rug had a cost of $ \$ 2,900 $.
21 Bryce Corporation requested a reduction in the price of the rug because of a defect. Zion granted a \$200 allowance to Bryce.
28 Received payment from Bryce for the May 18 th sale, less the allowance and the discount.

Accepted Answer

The answer of  
-Prepare all journal entries necessary to...

Question 12

Use the following to answer questions 
Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June:
  
-The cost of goods sold for the June 16th sale is:

Accepted Answer

A) $650 
B) $665 
C) $715 
D) $780 
A) $650 
B) $665 
C) $715 
D) $780

Which of the following is not an advantage of LIFO over FIFO?

Allowance for Doubtful Accounts had a beginning and ending balance of $3,500 and $4,600,respectively.If uncollectible accounts expense was $9,500 for the period,the total dollar amount of accounts written off during the period was:

If prices don't change over time,what will be the differences between LIFO and FIFO?

The journal entry to remove a specific customer's account,once it is identified as uncollectible,would include a:

Under which costing method is cost of good sold not systematically determined?

Use the following to answer questions Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June: -The cost of goods sold for the June 16 sale is:

Candle Corporation's adjusted trial balance includes Allowance for Doubtful Accounts at $37,500,Uncollectible Accounts Expense at $18,700,Notes Receivable at $25,000,and Accounts Receivable at $136,800.Net accounts receivable amounts to:

Kozicek Corporation reported credit sales of $200,000,accounts receivable of $110,000 at the beginning of the year,and accounts receivable of $150,000 at the end of the year.During the year Kozicek wrote off $10,00 as bad debt.Cash collections from customers during the year were:

During the current year,cost of goods sold was higher under the LIFO method than under the FIFO method.Which of the following statements about price changes is true?

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The cost of goods sold for the June 16th sale is:

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 10: Recording and Evaluating Revenue Process Activities

Which of the following is not an advantage of LIFO over FIFO?

Allowance for Doubtful Accounts had a beginning and ending balance of $3,500 and $4,600,respectively.If uncollectible accounts expense was $9,500 for the period,the total dollar amount of accounts written off during the period was:

If prices don't change over time,what will be the differences between LIFO and FIFO?

The journal entry to remove a specific customer's account,once it is identified as uncollectible,would include a:

Under which costing method is cost of good sold not systematically determined?

Use the following to answer questions Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June: -The cost of goods sold for the June 16 sale is:

Candle Corporation's adjusted trial balance includes Allowance for Doubtful Accounts at $37,500,Uncollectible Accounts Expense at $18,700,Notes Receivable at $25,000,and Accounts Receivable at $136,800.Net accounts receivable amounts to:

Kozicek Corporation reported credit sales of $200,000,accounts receivable of $110,000 at the beginning of the year,and accounts receivable of $150,000 at the end of the year.During the year Kozicek wrote off $10,00 as bad debt.Cash collections from customers during the year were:

During the current year,cost of goods sold was higher under the LIFO method than under the FIFO method.Which of the following statements about price changes is true?

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The cost of goods sold for the June 16th sale is:

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters