Question : 76.A company has net sales of $1,200,000 and average accounts : 1258894

Accounting

76.A company has net sales of $1,200,000 and average accounts receivable of $400,000. What is its accounts receivable turnover for the period?

A. 0.20

B. 5.00

C. 20.0

D. 73.0

E. 3.0

Accounts Receivable Turnover = Net Sales/Average Accounts ReceivableAccounts Receivable Turnover = $1,200,000/$400,000 = 3.0

77.Pepperdine reported net sales of $8,600 million, net income of $126 million and average accounts receivable of $890 million. Its accounts receivable turnover is:

A. 37.8.

B. 9.7.

C. 68.3.

D. 7.1.

E. 51.7.

Accounts Receivable Turnover = Net Sales/Average Accounts ReceivableAccounts Receivable Turnover = $8,600/$890 = 9.7

78.Axle Co.’s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Betterman’s turnover was 9.3 for this year and 9.3 for last year. These results imply that:

A. Betterman has the better turnover for both years.

B. Axle has the better turnover for both years.

C. Betterman’s turnover is improving.

D. Axle’s credit policies are too loose.

E. Betterman is collecting its receivables more quickly than Axle in both years.

79.A company had net sales of $600,000, total sales of $750,000, and an average accounts receivable of $75,000. Its accounts receivable turnover equals:

A. .13

B. .80

C. 7.75

D. 8.00

E. 10.00

Accounts Receivable Turnover = Net Sales/Average Accounts ReceivableAccounts Receivable Turnover = $600,000/$75,000 = 8.00

80.A company had total sales of $600,000, net sales of $550,000, and an average accounts receivable of $95,000. Its accounts receivable turnover equals:

A. 6.1

B. 63.0

C. 54.8

D. 1.1

E. 6.3

Accounts Receivable Turnover = Net Sales/Average Accounts ReceivableAccounts Receivable Turnover = $550,000/$90,000 = 6.1

81.The matching principle, as applied to bad debts, requires:

A. That expenses be ignored if their effect on the financial statements is unimportant to users’ business decisions.

B. The use of the direct write-off method for bad debts.

C. The use of the allowance method of accounting for bad debts.

D. That bad debts be disclosed in the financial statements.

E. That bad debts not be written off.

82.The materiality constraint, as applied to bad debts:

A. Permits the use of the direct write-off method when bad debts expenses are relatively small.

B. Requires use of the allowance method for bad debts.

C. Requires use of the direct write-off method.

D. Requires that bad debts not be written off.

E. Requires that expenses be reported in the same period as the sales they helped produce.

83.If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in:

A. An increase in the expenses of the current period.

B. A reduction in current assets.

C. A reduction in equity.

D. No effect on the expenses of the current period.

E. A reduction in current liabilities.

84.On October 17 of the current year, a company determined that a customer’s account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company’s net income and total assets?

A. Decrease in net income; no effect on total assets.

B. No effect on net income; no effect on total assets.

C. Decrease in net income; decrease in total assets.

D. Increase in net income; no effect on total assets.

E. No effect on net income; decrease in total assets.

85.Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:

A. Accounts Receivable—A. Hopkins2,000

Allowance for Doubtful Accounts 2,000

B. Allowance for Doubtful Accounts2,000

Bad debts expense 2,000

C. Accounts Receivable—A. Hopkins2,000

Bad debts expense 2,000

Cash2,000

Accounts Receivable—A. Hopkins 2,000

D. Allowance for Doubtful Accounts2,000

Accounts Receivable—A. Hopkins 2,000

E. Cash2,000

Accounts Receivable—A. Hopkins 2,000

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.