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1 | | Which of the following revenue process events is an accounting event? |
| | A) | Send copy of sales order to the credit manager |
| | B) | Determine marketing and distribution channels |
| | C) | Prepare a bill of lading for the common carrier |
| | D) | Estimate the amount of uncollectible accounts receivable |
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2 | | Which of the following could not be used in determining whether a revenue could be recognized. |
| | A) | Customer takes product home to try out |
| | B) | A receivable is deemed collectible |
| | C) | A product has been delivered or a service has been rendered |
| | D) | The net assets (assets - liabilities) has been increased |
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3 | | Which of the following documents is not part of the revenue process? |
| | A) | Bill of lading |
| | B) | Sales order |
| | C) | Packing slip |
| | D) | Remittance advice |
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4 | | In the following journal entry, revenue is being recognized:
(4.0K) |
| | A) | at the same time cash is collected |
| | B) | before the cash is collected |
| | C) | after the cash is collected |
| | D) | on an installment basis |
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5 | | The journal entry to record the return of merchandise from a credit customer is: |
| | A) | (7.0K) |
| | B) | (7.0K) |
| | C) | (9.0K) |
| | D) | (5.0K) |
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6 | | The journal entry to record a customer's payment within the discount period is: |
| | A) | (9.0K) |
| | B) | (9.0K) |
| | C) | (9.0K) |
| | D) | (8.0K) |
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7 | | The journal entry to remove a specific customer's account, once it is identified as uncollectible, would debit ______, credit _____, and _____net accounts receivable. |
| | A) | accounts receivable, cash, decrease |
| | B) | allowance for uncollectible accounts, accounts receivable, not change |
| | C) | bad debt expense, accounts receivable, decrease |
| | D) | allowance for uncollectible accounts, accounts receivable, decrease |
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8 | | Which of the following is not a characteristic of LIFO? |
| | A) | if used on the tax return LIFO will have lower taxable income than FIFO. |
| | B) | Ending inventory on the balance sheet will be based on the most recent cost. |
| | C) | LIFO provides a better matching of revenues and expenses on the income statement than FIFO |
| | D) | LIFO cost flow does not correspond to the physical flow of the goods. |
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9 | | Pilgrim Thanksgiving Supply has a perpetual inventory system and uses the FIFO method of inventory costing. Pilgrim had a beginning inventory of 45 units and reported the following events during the month of March: (18.0K) The cost of goods sold for the March 5 sale is: |
| | A) | $260 |
| | B) | $220 |
| | C) | $200 |
| | D) | $215 |
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10 | | Pilgrim Thanksgiving Supply has a perpetual inventory system and uses the FIFO method of inventory costing. Pilgrim had a beginning inventory of 45 units and reported the following events during the month of March: (18.0K)
The ending inventory for March: |
| | A) | $1,040 |
| | B) | $800 |
| | C) | $1,030 |
| | D) | $1,000 |
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11 | | Peterson Home Decor has a perpetual inventory system and uses the LIFO method of inventory costing. Peterson reported the following events during the month of May: (18.0K) The cost of goods sold for the May 5th sale is: |
| | A) | $750 |
| | B) | $775 |
| | C) | $800 |
| | D) | $900 |
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12 | | Peterson Home Decor has a perpetual inventory system and uses the LIFO method of inventory costing. Peterson reported the following events during the month of May: (18.0K)
The cost of goods sold for the May 21 sale is: |
| | A) | $1,530 |
| | B) | $1,620 |
| | C) | $1,515 |
| | D) | $1,350 |
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13 | | Peterson Home Decor has a perpetual inventory system and uses the LIFO method of inventory costing. Peterson reported the following events during the month of May: (18.0K)
The ending inventory on May 30 is: |
| | A) | $2,650 |
| | B) | $2,970 |
| | C) | $2,540 |
| | D) | $2,475 |
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14 | | An unfavorable sales price variance occurs when: |
| | A) | The cost of products have decreased increasing the profit from the product. |
| | B) | The actual selling price is less than what was budgeted. |
| | C) | The company has sold more products than was anticipated. |
| | D) | The company sales price decreased causing more product to be sold |
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15 | | A favorable sale quantity variance occurs when there is/are: |
| | A) | More units sold than budgeted. |
| | B) | A higher actual selling price than budgeted |
| | C) | A decrease in the cost of products causing an increase in income for the period |
| | D) | A decrease in the quantity of bad accounts receivables |
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