Professional Documents
Culture Documents
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(TCO A) The cost of assets consumed or services used is also known as:
a revenue.
an expense.
a liability.
an asset.
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14. Question :
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(TCO D) A debit is the normal balance for which account listed below?
Furniture
Accounts payable
Rent revenue
Capital stock issued
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a fiscal year.
an interim period.
the time period assumption.
a reporting period.
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(TCO E) On April 1, 2010, M Corporation paid $48,000 cash for equipment that w
business operations. The equipment will be used for four years and will have no
value. M records depreciation expense of $9,000 for the calendar year ending De
2010. Which accounting principle has been violated?
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4.
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(TCO E) The following is selected information from M Corporation for the fiscal y
October 31, 2010:
Cash received from customers $300,000
Revenue earned 350,000
Cash paid for expenses 170,000
Expenses incurred 200,000
Based on the accrual basis of accounting, what is M Corporations net income for
ending October 31, 2010?
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$140,000
$114,000
$82,000
$150,000
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$2,940
$2,760
$2,700
$3,000
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(TCO A, B) Jakes Market recorded the following events involving a recent purcha
merchandise:
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increased by $19,208.
increased by $19,700.
increased by $19,306.
increased by $19,308.
Question :
(TCO A) The factor which determines whether or not goods should be included in
count of inventory is:
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physical possession.
legal title.
managements judgment.
whether or not the purchase price has been paid.
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(TCO A) Barnes Company is taking a physical inventory on March 31, the last day
year. Which of the following must be included in this inventory count?
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(TCO A) Which of the following statements is true regarding inventory cost flow
assumptions?
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A company may use more than one cost-flow assumption concurrently for differ
lines.
A company must comply with the method specified by industry standards.
A company must use the same method for domestic and foreign operations.
A company may never change its inventory costing method once it has chosen a
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Question :
(TCO A) In periods of rising prices, the inventory method which results in the inve
on the balance sheet that is closest to current cost is the:
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FIFO method.
LIFO method.
average cost method.
tax method.
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a retailer.
a wholesaler.
a broker.
a service enterprise.
Compute the profit margin ratio and gross profit rate. Caltor
Company s assets at the beginning of the year were $770,000
and were $830,000 at the end of the year. To qualify for full
credit, you must state the formula you are using, show your
computations and explain your findings.