September 2023 QUIZ 2 A company had inventory on Nov 1 st of 5
2024 QUIZ 2 Assignment Help
QUIZ 2 A company had inventory on Nov 1 st of 5 2023
QUIZ 2 A company had inventory on Nov 1 st of 5 units at a cost of $20 each. On Nov 2 nd they purchased 10 units at $22 each. On Nov 8 th 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on Nov 8 th after the sale? A. $144 B. $320 C. $154 D. $160 On April 30 th 2014 a one year insurance policy was purchased for $1,800 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company’s income statement for the year ended Dec 31 st ? A. $900 B. $1350 C. $1200 D. $180 The difference between the cost of an asset and the accumulated depreciation for that asset is called: A. Depreciation Expense B. Unearned Depreciation C. Prepaid Depreciation D. Book Value If a company forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show: A. Assets overstated and equity understated B. Assets and equity both understated C. Assets overstated, net income understated, and equity overstated D. Assets, net income, and equity overstated The consistency concept: A. Requires a company to consistently use the same accounting method of inventory valuation unless a change will improve financial reporting B. Requires a company to use one method of inventory valuation exclusively C. Requires that all companies in the same industry use the same accounting methods of inventory valuation D. Is also called the full disclosure concept Determine the expected annual sales for the sales budget. Units sell at $10 each. Estimated sales are as follows. First quarter 10,000 units, second quarter 15,000 units, third quarter 20,000 units and fourth quarter 30,000 units. A. $600,000 B. $240,000 C. $800,000 D. $750,000 Which of the following is not a benefit of budgeting? A. A budget communicates expected outcomes B. A budget assists in creating specific goals and objectives C. A budget establishes benchmarks to measure success D. A budget guarantees a net income for the company Pipe Fitters Co. has a beginning inventory of 10,000 units. Sales are expected to be 30,000 units. The required ending inventory is 8,000 units. How many units must be produced? A. 28,000 B. 30,000 C. 32,000 D. 48,000 Dotson’s Manufacturing Co.’s static budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed cost are $23,000.At 9,000 units of production, a flexible budget would show: A. Variable costs of $49,500 and $5,875 of fixed costs B. Variable costs of $44,000 and $23,000 of fixed costs C. Variable costs of $49,500 and $23,000 of fixed costs D. Variable and fixed costs totaling $75,375 Pepsi’s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Coca-Cola’s turnover was 9.3 for this year and 9.3 for last year. These results imply that: A. Coke has the better turnover for both years B. Pepsi has the better turnover for both years C. Coke’s turnover is improving D. Coke is collecting its receivables more quickly than Pepsi in both years. A company’s sales in 2013 were $250,000 and in 2014 were $287,500. Using 2013 as the base year, the change in sales from 2013 to 2014 is: A. 87% B. 100% C. 115% D. 15% Answer the following questions based upon the information provided in the adjusted trial balance data from the Awesome Company spreadsheet for the year ended December 31 st . What is the amount of the net realized value for accounts receivable? A. $12,500 B. $11,400 C. $13,600 D. $1,100 What is the amount of the net book value for the store equipment? A. $5,000 B. $7,500 C. $10,000 D. $2,500 What is the amount of the total current assets? A. $75,800 B. $120,000 C. $119,800 D. $74,800 What is the amount of the total plant and equipment? A. $35,500 B. $37,000 C. $45,000 D. $39,000 What is the amount of total assets? A. $110,300 B. $120,900 C. $111,400 D. $109,400 What is the amount of the current liabilities? A. $52,400 B. $26,000 C. $26,400 D. $16,000 What is the amount of the total long-term liabilities? A. $26,400 B. $36,000 C. $52,000 D. $26,000 What is the amount of the total stockholders’ equity? A. $49,000 B. $120,900 C. $57,400 D. Not Determined What is the amount of net income for the period? A. $106,900 B. $$8,900 C. $56,150 D. $9,300