Question

1. Held-to-muturity investments are reported at A. maturity value. B. amortized cost. C. fair value. D....

1.

Held-to-muturity investments are reported at

A. maturity value.

B. amortized cost.

C. fair value.

D. acquisition cost.

2.

Ace Bonding Company purchased merchandise inventory on account and it uses perpetual inventory system. The inventory costs $2,000 and is expected to sell for $3,000. Which account will Ace debit to?

A. Purchases

B. Cost Of Goods Sold

C. Inventory

D. Accounts Receivable

3.

If Top Company owns 5% of the ordinary shares of Bon Company, then Top Company typically:

A. Would record 5% of the net income of Bon Company as investment income each year.

B. Would record dividends received from Bon Company as reduction in its investment account.

C. Would increase its investment account by 5% of Bon Company income each year.

D. None of the above

4.

Retrospective treatment of prior years' financial statements is required when there is a change from:

A. Average cost to FIFO.

B. FIFO to average cost.

C. LIFO to average cost.

D. All of the above.

5.

When using the gross profit method to estimate ending inventory, it is not necessary to know:

A. Net purchases.

B. Accounts payable.

C. Gross profit ratio.

D. Cost of goods sold.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,800 and is expected to...
Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,800 and is expected to sell for $6,600. How should Ace record the purchase? Multiple Choice Inventory 3,800 Accounts payable 3,800 Cost of goods sold 3,800 Deferred revenue 2,800 Sales in advance 6,600 Cost of goods sold 3,800 Profit 2,800 Sales payable 6,600
Goods on consignment belong to the A consignor. B customer. C consignee. D supplier. The first-in,...
Goods on consignment belong to the A consignor. B customer. C consignee. D supplier. The first-in, first-out (FIFO) cost formula assumes: A the newest goods purchased are the first ones sold. B the oldest goods purchased will remain in inventory longest. C the oldest goods purchased are the last ones sold. D the oldest goods purchased are the first ones sold. When using first-in, first-out (FIFO): A management uses average costs to assign to the balance sheet and the income...
On the basis of the accounts provided​ below, calculate a. Net sales b. Cost of goods...
On the basis of the accounts provided​ below, calculate a. Net sales b. Cost of goods sold​ (after adjustment) c. Gross profit d. Net income LOADING... ​(Click the icon to view the account​ information.) a. Net sales b. Cost of goods sold (after adjustment) c. Gross profit d. Net income Accounts Payable $5,600 Operating Expenses 1,900 Buckeye Co., Capital 18,800 Cost of Goods Sold 4,500 Ending Inventory, December 31, 2019 1,050 Sales 10,170 Accounts Receivable 1,439 Cash 850 Sales Returns...
Requirement 1. Requiremen Compute cost of goods sold and gross profit using the FIFO inventory costing...
Requirement 1. Requiremen Compute cost of goods sold and gross profit using the FIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the...
1.       Barnes Company showed the following balances at the end of its first year: Cash     $10,000...
1.       Barnes Company showed the following balances at the end of its first year: Cash     $10,000 Prepaid insurance         800 Accounts receivable      4,500 Accounts payable          2,800 Notes payable               4,200 Unearned revenues       5,400 Revenues                       21,000 Expenses                       17,500 What did Barnes Company show as total debits on its trial balance? a.         $15,300 b.           $20,700 c.          $32,800 d.         None of the above 2.       The right side of an account is a.         blank. b.         a description of the account. c.          the credit...
Income from operations is gross profit a. less operating expenses. b. less inventory. c. less cost...
Income from operations is gross profit a. less operating expenses. b. less inventory. c. less cost of goods sold. d. plus cost of goods sold.
Company D applied FIFO and reported gross profit of $500,000. Company D reported inventory of $180,000...
Company D applied FIFO and reported gross profit of $500,000. Company D reported inventory of $180,000 at January 1 and $262,000 at December 31. Had LIFO had been used rather than FIFO, those figures would have been $100,000 and $110,000 at January 1 and at December 31, respectively. What would Company D’s gross profit have been under LIFO?A. $418,000. B. $428,000. C. $562,000. D. $572,000. E. $582,000.
1. The largest expense category on the income statement of most merchandising companies​ is: A. selling...
1. The largest expense category on the income statement of most merchandising companies​ is: A. selling expenses B. administrative expenses C. other expenses D. cost of goods sold 2.Using a perpetual inventory​ system, which of the following entries would record the cost of merchandise sold on​ credit? A. Debit Inventory and credit Cost of Goods Sold B. Debit Cost of Goods Sold and credit Purchases C. Debit Cost of Goods Sold and credit Inventory D. Credit Sales and debit Accounts...
1. Which of the following are similarities between a six-month note receivable and an account receivable?...
1. Which of the following are similarities between a six-month note receivable and an account receivable? They both are: Select one: a. formal written contracts. b. interest bearing. c. current assets. d. current liabilities. 2. Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company uses a periodic inventory system. Consider the following information: Date ...................... Description......................# of units...........Cost per unit January 1................Beginning inventory...............240......................$ 5 June 2.....................Purchase.................................90......................$ 4 November 5............Sales......................................260 What amounts...
During June, the following purchases and sales were made by Covid Company. There was no beginning...
During June, the following purchases and sales were made by Covid Company. There was no beginning inventory. Assuming that a perpetual inventory system is used and under the FIFO method, Which of the following entries should Covid Company use to record the cost of goods sold for sale on June 13: 2 points Account Receivable (D) €1,220 Sales Revenue (C) € 1,220 Inventory (D) €1,220 Sales Revenue (C) € 1,220 Cost of Goods Sold (D) €1,220 Inventory (C) € 1,220...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT