Question : 108.Mary Martin, the owner of Martin Consulting, Inc., started the : 1258609

Accounting

108.Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record the transaction.

A. Cash40,000

Common Stock 40,000

B. Common Stock40,000

Cash 40,000

C. Investments40,000

Cash 40,000

D. Investments40,000

Common Stock 40,000

E. Cash40,000

Increased Equity 40,000

109.If cash is received from customers in payment for products or services that have not yet been delivered to the customers, the business would record the cash receipt as:

A. A debit to an unearned revenue account.

B. A debit to a prepaid expense account.

C. A credit to an unearned revenue account.

D. A credit to a prepaid expense account.

E. No entry is required at the time of collection.

110.On May 31, the Cash account of Bottle’s R Us had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

A. A $0 balance.

B. A $4,300 debit balance.

C. A $4,300 credit balance.

D. A $5,700 debit balance.

E. A $5,700 credit balance.

Beginning Cash Balance + Debits – Credits = Ending Cash BalanceBeginning Cash Balance + $12,200 – $11,500 = $5,000Beginning Cash Balance + $700 = $5,000; Beginning Balance = $4,300 debit balance

111.On April 30, Victor Services had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?

A. $5,000.

B. $47,000.

C. $52,000.

D. $57,000.

E. $32,000.

Beginning Accounts Receivable Balance + Credit Sales (Debits) – Customer Payments (Credits) = Ending Accounts Receivable Balance $18,000 + Credit Sales (Debits) – $52,000 = $13,000 Credit Sales (Debits) – $34,000 = $13,000 Credit Sales (Debits) = $47,000

112.During the month of February, Victor Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?

A. $700.

B. $1,100.

C. $2,900.

D. $0.

E. $4,300.

Beginning Cash Balance + Cash Receipts – Cash Disbursements = Ending Cash BalanceBeginning Cash Balance + $7,500 – $8,600 = $1,800Beginning Cash Balance – $1,100 = $1,800Beginning Cash Balance = $2,900

113.The following transactions occurred during July:1. Received $900 cash for services provided to a customer during July.2. Received $2,200 cash investment from Bob Johnson, the stockholder of the business.3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June.4. Provided services to a customer on credit, $375.5. Borrowed $6,000 from the bank by signing a promissory note.6. Received $1,250 cash from a customer for services to be rendered next year.What was the amount of revenue for July?

A. $900.

B. $1,275.

C. $2,525.

D. $3,275.

E. $11,100.

Revenues = $900 (from #1) + $375 (from #4) = $1,275

114.If Taylor Willow, the owner of Willow Hardware Inc., uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

A. Debit Automobiles and credit Cash.

B. Debit Cash and credit Salary Expense.

C. Debit Cash and credit Dividends.

D. Debit Dividends and credit Cash.

E. Debit Cash and credit Automobiles.

115.Larry Bar opened a frame shop and completed these transactions: 1. Larry started the shop by investing $40,000 cash and equipment valued at $18,000. 2. Purchased $70 of office supplies on credit. 3. Paid $1,200 cash for the receptionist’s salary. 4. Sold a custom frame service and collected a $1,500 cash on the sale. 5. Completed framing services and billed the client $200. What was the balance of the cash account after these transactions were posted?

A. $300.

B. $41,500.

C. $40,300.

D. $38,500.

E. $38,700.

Ending Cash Balance = $40,000 (#1) – $1,200 (#3) + $1,500 (#4) = $40,300

116.At the beginning of January of the current year, Little Mikey’s Catering ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Mikey $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

A. $54,700.

B. $49,700.

C. $2,300.

D. $54,300.

E. $49,300.

Beginning Accounts Receivable Balance + Services on Account – Collections from Customers = Ending Accounts Receivable Balance$52,000 + $12,500 – $14,800 = Ending Accounts Receivable BalanceEnding Accounts Receivable = $49,700

117.During the month of March, Harley’s Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

A. $83,900.

B. $91,900.

C. $6,600.

D. $75,900.

E. $4,900.

Beginning Accounts Payable Balance + Purchases on Account – Payments on Accounts = Ending Accounts Payable Balance$77,300 + $43,500 – $36,900 = Ending Accounts Payable BalanceEnding Accounts Payable = $83,900

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July 1, 2023

121.In the context of the 1997 Asian crisis, how did the International Monetary Fund's “one-size-fits-all” approach to macroeconomic policy affect South Korea?

A. It led to a decrease in the interest rates of short-term loans.

B. It made it difficult for companies to service their excessive short-term debt obligations.

C. It decreased the probability of widespread corporate defaults.

D. South Korea failed to recover from its financial crises.

E. South Korea was forced to increase restrictions on foreign direct investment.

122._____ arises when people behave recklessly because they know they will be saved if things go wrong.

A. Systemic risk

B. Moral hazard

C. Ethical dilemma

D. Tragedy of the commons

E. Risk compensation

123.Jade, a working professional, began driving rashly ever since she got her car insured against damage. She believed that the insurance claim would cover her in case of any accidents. Jade’s behavior is due to a situation known as _____.

A. cognitive dissonance

B. conflict of interest

C. systemic risk

D. moral hazard

E. tragedy of the commons

124.The International Monetary Fund been criticized for:

A. its lack of “one-size-fits-all” approach to macroeconomic policy.

B. encouraging moral hazard among banks.

C. its lack of power and authority.

D. using external experts to gain knowledge about a country.

E. keeping its operations open to outside scrutiny.

125.According to the critics of the International Monetary Fund (IMF), how should the problem of moral hazard exhibited by banks be resolved?

A. The IMF should use a “one-size-fits-all” approach to macroeconomic policy.

B. The IMF should establish a mechanism for accountability.

C. The IMF should free all banks from the obligation of financial reporting.

D. The banks should be forced to pay the price for their rash lending policies.

E. The IMF should bail out the banks whose loans gave rise to financial crises.

126.According to the noted economist Jeffrey Sachs, the International Monetary Fund should:

A. not be accountable to anyone as it is a powerful institution.

B. bail out the banks that have rash lending policies.

C. have a “one-size-fits-all” approach to macroeconomic policy.

D. keep its operations open to greater outside scrutiny.

E. lend only to countries with safe credit ratings.

127.The International Monetary Fund programs have been counterproductive, or only had limited success in _____.

A. Turkey

B. Iceland

C. Greece

D. Ireland

E. Latvia

128.In response to the global financial crisis of 2008–2009, the International Monetary Fund began to:

A. exercise tight controls on fiscal policy of the borrowing countries.

B. encourage activities that resulted in high inflation rates.

C. display inflexibility in policy responses.

D. urge countries to adopt policies that included fiscal stimulus and monetary easing.

E. adopt a “one-size-fits-all” approach to macroeconomic policy.

129.Which of the following observations about the International Monetary Fund (IMF) is true?

A. The IMF can force countries to adopt the policies required to correct economic mismanagement.

B. Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.

C. In recent years, the IMF has begun to make its policies more tight and inflexible.

D. In response to the global financial crisis of 2008–2009, the IMF began to adopt a “one-size-fits-all” approach to macroeconomic policy.

E. In recent years, the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

130.Which of the following poses a problem for international businesses in the long run?

A. Using exchange rate instruments like the forward market and swaps

B. Volatility of global exchange rate regime

C. Anti-inflationary monetary policies

D. Maintaining strategic flexibility by dispersing production to different locations

E. A policy of reduction in government spending