Question :
31. Cash includes: A. currency,B. money ordersC. bank checksD. checking accounts and time depositsE. all of the : 1230664
31. Cash includes:
A. currency,
B. money orders
C. bank checks
D. checking accounts and time deposits
E. all of the above
32. Cash equivalents includes short-term,
A. highly liquid investments with maturities of three months or less
B. highly liquid investments with maturities of six months or less
C. highly liquid investments with maturities of one year months or less
D. investments with maturities of three months or less
E. investments with maturities of six months or less
33. On August 1, English Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Insurance Expense . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 18,000
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
D. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 18,000
Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 18,000
34. On August 1, English Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:
Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
At the end of each of the next 12 months, the firm records the following adjusting entry:
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 1,500
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
D. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,500
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 1,500
Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
35. Which of the following is/are true regarding inventory?
A. Inventory refers to goods and other items that a firm owns and holds for sale or for further processing as part of its operations.
B. Inventory is called “stock” in some countries.
C. When the firm sells inventory, the carrying amount of that inventory becomes an expense,
D. Inventories are a major asset for merchandising and manufacturing firms,
E. all of the above
36. Which of the following is not true regarding inventory?
A. Inventory refers to goods and other items that a firm owns and holds for sale or for further processing as part of its operations.
B. Inventory is called “stock” in some countries.
C. When the firm sells inventory, the carrying amount of that inventory becomes an expense,
D. Inventories are a major asset for merchandising and manufacturing firms,
E. The following equation measures all quantities in physical units:
Beginning Inventory – Additions + Withdrawals = Ending Inventory
37. The inventory equation describes changes in inventory. The following equation measures all quantities in physical units:
A. Beginning Inventory + Additions + Withdrawals = Ending Inventory
B. Beginning Inventory – Additions – Withdrawals = Ending Inventory
C. Beginning Inventory + Additions x Withdrawals = Ending Inventory
D. Beginning Inventory x Additions – Withdrawals = Ending Inventory
E. Beginning Inventory + Additions – Withdrawals = Ending Inventory
38. Sweetooth Industries began a period with 2,000 pounds of sugar and purchased 4,500 pounds during the period. Sweetooth used 5,300 pounds during the period. How many pounds of sugar remain at the end of the period?
A. 800 pounds of sugar
B. 1,000 pounds of sugar
C. 1,200 pounds of sugar
D. 1,400 pounds of sugar
E. 1,600 pounds of sugar
39. Sweetooth Industries began a period with 2,000 pounds of sugar and purchased 4,500 pounds during the period. Sweetooth used 5,300 pounds during the period. How many pounds of sugar were available for sale or use during the period?
A. 5,000 pounds of sugar
B. 5,500 pounds of sugar
C. 6,500 pounds of sugar
D. 7,000 pounds of sugar
E. 7,500 pounds of sugar
40. The principle for cost inclusion is that the balance sheet amount for inventory should include all costs incurred to
A. acquire goods, only
B. prepare the goods for sale, only
C. acquire goods and prepare them for sale.
D. acquire goods, prepare them for sale, and transport them to the buyer.
E. acquire goods, prepare them for sale, and sales commissions.
