Question 1

Classify the following as either Current Assets (CA),Investments (I),or both (CA and I).

Accepted Answer

^(a)^CA (b)CA (c)

Question 2

Other than accounts receivable and notes receivable,name other receivables that might be included on the balance sheet.

Accepted Answer

Interest Receivable,

Question 3

A 90-day,10% note for $10,000 dated March 15 is received from a customer on account.The face value of the note is:

Accepted Answer

A) $10,250. 
B) $9,000. 
C) $9,750. 
D) $10,000. 
A) $10,250. 
B) $9,000. 
C) $9,750. 
D) $10,000.

Question 4

The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.

Accepted Answer

A) True 
 B)False

Question 5

The amount of the promissory note plus the interest earned on the due date is called the:

Accepted Answer

A) market value. 
B) maturity value. 
C) face value. 
D) discounted value. 
A) market value. 
B) maturity value. 
C) face value. 
D) discounted value.

Question 6

When merchandise sold is assumed to be in the order in which the expenditures were made,the inventory costing method is called:

Accepted Answer

A) first-in,last-out. 
B) last-in,first-out. 
C) first-in,first-out. 
D) average cost. 
A) first-in,last-out. 
B) last-in,first-out. 
C) first-in,first-out. 
D) average cost.

Question 7

The following units are available for sale during the year:
 
Determine ending inventory cost by (a) FIFO method, (b) LIFO method, and (c) average cost method.

Accepted Answer

(a)FIFO: $610 
(b)LI

Question 8

Use the following data to calculate cost of merchandise sold under FIFO method.

Accepted Answer

A) $825 
B) $750 
C) $675 
D) $600 
A) $825 
B) $750 
C) $675 
D) $600

Question 9

During inflationary periods,the use of the LIFO method of costing inventory will result in a lesser amount of net income than would result from the use of the average method of inventory costing.

Accepted Answer

A) True 
 B)False

Question 10

Under which method of inventory costing is the ending inventory assumed to be composed of the most recent costs?

Accepted Answer

A) Average cost 
B) Last-in,first-out 
C) First-in,last-out 
D) First-in,first-out 
A) Average cost 
B) Last-in,first-out 
C) First-in,last-out 
D) First-in,first-out

Question 11

The due date of a 60-day note dated July 12 is:

Accepted Answer

A) September 11. 
B) September 8. 
C) September 9. 
D) September 10. 
A) September 11. 
B) September 8. 
C) September 9. 
D) September 10.

Question 12

If the cost of an item of inventory is $70,the current replacement cost is $65,and the sales price is $85,the amount included in inventory according to the lower-of-cost-or-market method is:

Accepted Answer

A) $65. 
B) $70. 
C) $85. 
D) $160. 
A) $65. 
B) $70. 
C) $85. 
D) $160.

Question 13

During a period of consistently rising prices,the method of inventory costing that will result in reporting the greatest cost of merchandise sold is:

Accepted Answer

A) FIFO. 
B) average cost. 
C) LIFO. 
D) All methods will generate the same cost of merchandise sold. 
A) FIFO. 
B) average cost. 
C) LIFO. 
D) All methods will generate the same cost of merchandise sold.

Question 14

A note receivable due in 18 months is listed on the balance sheet under the caption:

Accepted Answer

A) long-term liabilities. 
B) fixed assets. 
C) current assets. 
D) investments. 
A) long-term liabilities. 
B) fixed assets. 
C) current assets. 
D) investments.

Question 15

Determine the due date and amount of interest due at maturity on the following notes (Assume 360 days in a year):

Accepted Answer

(a)April 30; $75 = (

Question 16

"Market," as used in the phrase "lower of cost or market" for valuing inventory,refers to the price at which the inventory is being offered for sale by its owner.

Accepted Answer

A) True 
 B)False

Question 17

If net sales is $550,000,beginning inventory is $110,000,and ending inventory is $125,000,how much would be the accounts receivables turnover?

Accepted Answer

A) 4.4 
B) 5.0 
C) 4.7 
D) 4.0 
A) 4.4 
B) 5.0 
C) 4.7 
D) 4.0

Question 18

The maturity value of a 12%,60-day note for $1,000 is $1,020.(Assume 360 days in a year)

Accepted Answer

A) True 
 B)False

Question 19

On the basis of the following data related to current assets for Mission Co.at December 2016,prepare a partial balance sheet in good form.

Accepted Answer

120,000 Mission Co. Partial Balance Shee

Question 20

The party promising to pay a note at maturity is the payee.

Accepted Answer

A) True 
 B)False

Classify the following as either Current Assets (CA),Investments (I),or both (CA and I).

Other than accounts receivable and notes receivable,name other receivables that might be included on the balance sheet.

A 90-day,10% note for $10,000 dated March 15 is received from a customer on account.The face value of the note is:

The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.

The amount of the promissory note plus the interest earned on the due date is called the:

When merchandise sold is assumed to be in the order in which the expenditures were made,the inventory costing method is called:

The following units are available for sale during the year: Determine ending inventory cost by (a) FIFO method, (b) LIFO method, and (c) average cost method.

Use the following data to calculate cost of merchandise sold under FIFO method.

During inflationary periods,the use of the LIFO method of costing inventory will result in a lesser amount of net income than would result from the use of the average method of inventory costing.

Under which method of inventory costing is the ending inventory assumed to be composed of the most recent costs?

The due date of a 60-day note dated July 12 is:

If the cost of an item of inventory is $70,the current replacement cost is $65,and the sales price is $85,the amount included in inventory according to the lower-of-cost-or-market method is:

During a period of consistently rising prices,the method of inventory costing that will result in reporting the greatest cost of merchandise sold is:

A note receivable due in 18 months is listed on the balance sheet under the caption:

Determine the due date and amount of interest due at maturity on the following notes (Assume 360 days in a year):

"Market," as used in the phrase "lower of cost or market" for valuing inventory,refers to the price at which the inventory is being offered for sale by its owner.

If net sales is $550,000,beginning inventory is $110,000,and ending inventory is $125,000,how much would be the accounts receivables turnover?

The maturity value of a 12%,60-day note for $1,000 is $1,020.(Assume 360 days in a year)

On the basis of the following data related to current assets for Mission Co.at December 2016,prepare a partial balance sheet in good form.

The party promising to pay a note at maturity is the payee.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 6: Receivables and Inventories

Classify the following as either Current Assets (CA),Investments (I),or both (CA and I).

Other than accounts receivable and notes receivable,name other receivables that might be included on the balance sheet.

A 90-day,10% note for $10,000 dated March 15 is received from a customer on account.The face value of the note is:

The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.

The amount of the promissory note plus the interest earned on the due date is called the:

When merchandise sold is assumed to be in the order in which the expenditures were made,the inventory costing method is called:

The following units are available for sale during the year: Determine ending inventory cost by (a) FIFO method, (b) LIFO method, and (c) average cost method.

Use the following data to calculate cost of merchandise sold under FIFO method.

During inflationary periods,the use of the LIFO method of costing inventory will result in a lesser amount of net income than would result from the use of the average method of inventory costing.

Under which method of inventory costing is the ending inventory assumed to be composed of the most recent costs?

The due date of a 60-day note dated July 12 is:

If the cost of an item of inventory is $70,the current replacement cost is $65,and the sales price is $85,the amount included in inventory according to the lower-of-cost-or-market method is:

During a period of consistently rising prices,the method of inventory costing that will result in reporting the greatest cost of merchandise sold is:

A note receivable due in 18 months is listed on the balance sheet under the caption:

Determine the due date and amount of interest due at maturity on the following notes (Assume 360 days in a year):

"Market," as used in the phrase "lower of cost or market" for valuing inventory,refers to the price at which the inventory is being offered for sale by its owner.

If net sales is $550,000,beginning inventory is $110,000,and ending inventory is $125,000,how much would be the accounts receivables turnover?

The maturity value of a 12%,60-day note for $1,000 is $1,020.(Assume 360 days in a year)

On the basis of the following data related to current assets for Mission Co.at December 2016,prepare a partial balance sheet in good form.

The party promising to pay a note at maturity is the payee.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters