Question : 81. Good, Inc. sold inventory for $1,200 that was purchased for : 1236178

Accounting

81. Good, Inc. sold inventory for $1,200 that was purchased for $700. Good records which of the following when it sells inventory using a periodic inventory system?
A. No entry is required for cost of goods sold and inventory.
B. Debit Cost of Goods Sold $700; credit Inventory $700.
C. Debit Cost of Goods Sold $1,200; credit Inventory $1,200.
D. Debit Inventory $700; credit Cost of Goods Sold $700.

82. Davis Hardware Company uses a periodic inventory system. How should Davis record the sale of inventory costing $620 for $960 on account?
A.
B.
C.
D.

83. Ace Bonding Company purchased inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase using a periodic inventory system?
A.
B.
C.
D.

84. On May 1, Ace Bonding Company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, Ace pays for this inventory and records which of the following using a periodic inventory system?
A.
B.
C.
D.

85. On May 1, Ace Bonding Company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 18, Ace pays for this inventory and records which of the following using a periodic inventory system?
A.
B.
C.
D.

86. If a company overstates its ending balance of inventory in year 1 and it records inventory correctly in year 2, which one of the following is true?
A. Net income is overstated in year 2.
B. Cost of goods sold is overstated in year 1.
C. Net income is understated in year 1.
D. Retained earnings is overstated in year 1.

87. If a company understates its ending balance of inventory in year 1 and it records inventory correctly in year 2, which one of the following is true?
A. Net income is overstated in year 1.
B. Cost of goods sold is understated in year 2.
C. Net income is understated in year 2.
D. Retained earnings is understated in year 2.

88. If a company understates its count of ending inventory in Year 1, which of the following is true?
A. Costs of good sold is understated at the end of Year 1.
B. Profit is correct in Year 2.
C. The balance of retained earnings is overstated at the end of Year 1.
D. The balance of retained earnings is correct at the end of Year 2.

89. Bill Inc.’s correct ending balance for the inventory account at the end of 2012 should be $5,000, but the company incorrectly stated it as $3,000. In 2013, Bill correctly recorded its ending balance of the inventory account. Which one of the following is true?
A. Gross profit is overstated by $2,000 in 2012.
B. Retained earnings are understated by $2,000 in 2013.
C. Gross profit is overstated by $2,000 in 2013.
D. Cost of goods sold is understated by $2,000 in 2012.

90. Suppose that Hastings Corporation overstates its ending inventory for 2012. What effect will this have on the reported amount of cost of goods sold for 2012?
A. Overstate cost of goods sold.
B. Understate cost of goods sold.
C. Have no effect on cost of goods sold.
D. Cannot be determined given the information provided.

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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.