Question

Q1 The date the board of directors votes to pay a dividend is called the:

a. Date of Payment

b. Date of Declaration

c. Date of record

d. Date of stockholders' meeting

Q2 - Treasury stock purchases are:

a. Investing activity.

b. Non-Operating activity.

c. Operating activity.

d. Financing activity.

4- Date of stockholders' meeting

Q3

With the following information what would be the cost of goods sold and the cost of end of period inventory under FIFO method?

• August 1, beginning inventory balance is 5,000 units at a cost of 90 SR
• August 5, purchases of 3,000 units at a cost of 95 SR
• August 10, purchases of 5,000 units at a cost of 100 SR
• August 15, sales of 10,000 units.

a. SR 950,000 and 285,000

b. SR 965,000 and 200,000

c. SR 935,000 and 270,000

d. SR 935,000 and 300,000

Q4 - Advance ticket sales totaling SR 2,000,000 cash would be recognized as follows:

a. Debit Unearned Revenue, credit Sales

b. Debit Cash, credit Unearned Revenue

c. Debit Sales, credit Unearned Revenue

d. Debit Unearned Revenue, credit Cash

Q5 - Weighted average method assumes:

a. Costs flow at an average of the costs available.

b. Costs flow in the reverse order incurred

c. Costs flow at specific identification.

d. Costs flow in the order incurred.

Q6 - In this method of estimating bad debts expenses, current period sales are multiplied by estimated bad debt percentage.

a. Percent of accounts receivable method

b. Aging of accounts receivable method

c. Direct write-off method

d. Percentage of sales method

Q7. Under periodic inventory system

a. Ending inventory can be determined at any time without physical counting.

b. Neither cost of goods sold nor ending inventory can be determined when making physical counting.

c. Cost of goods sold and ending inventory can be determined when making physical counting.

d. Cost of goods sold can be determined for each sale transaction.

Answer 1

1. Option b. Date of Declaration

2. Option d, Financing activity.

3. Option d. SR 935,000 and 300,000

Beginning inventory	450000
Aug 5 ,purchases	285000
Aug 10, purchases	500000
	1235000
Ending inventory	300000	[3000 units *100]
Cost of goods sold	935000	[1235000-300000]

4. Option b. Debit Cash, credit Unearned Revenue

5. Option a. Costs flow at an average of the costs available.

6. Option d. Percentage of sales method

7. Option c. Cost of goods sold and ending inventory can be determined when making physical counting.