compexam_b - COMPREHENSIVE EXAMINATION B (CHAPTERS 6 - 9)...

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COMPREHENSIVE EXAMINATION B (CHAPTERS 6 - 9) Approximate Problem Topic Points Minutes B - I Multiple Choice. ............................................. 20 15 B - II Computation of Net Purchases/Cost of Goods Sold. ............................................. 10 10 B - III Internal Control over Cash Receipts and Disbursements . ....................................... 10 5 B - IV Bank Reconciliation. ...................................... 15 10 B - V Periodic Inventories. ...................................... 12 10 B - VI Accounts Receivable. .................................... 10 10 B - VII Correcting Entries. ......................................... 9 10 B - VIII Notes Receivable. .......................................... 14 15 100 85 Checking Work . ............................................. 5 90
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Test Bank for Financial Accounting, Fifth Edition Problem B - I — Multiple Choice (20 points) Circle the one best answer. 1. Inventoriable costs include all of the following except the a. cost of the goods purchased. b. freight out. c. cost of the beginning inventory. d. freight in. 2. Abaco Enterprises had beginning inventory of $15,000 at March 1, 2006. During the month, the company made purchases of $120,000. The inventory at the end of the month is $17,000. What is cost of goods available for sale for the month of March? a. $15,000 b. $17,000 c. $118,000 d. $135,000 3. A check correctly written and paid by the bank for $361 is incorrectly recorded on the company's books for $316. The appropriate adjustment on a bank reconciliation would be to a. deduct $361 from the book's balance. b. deduct $45 from the book's balance. c. deduct $45 from the bank's balance. d. add $45 to the bank's balance. 4. The Petty Cash account should be debited a. whenever an expense is paid from the fund. b. when the fund is established. c. whenever the fund is replenished. d. when the fund is liquidated. 5. A 90-day promissory note dated May 28 matures on a. August 28. b. August 27. c. August 26. d. August 25. 6. The basis of estimating expected uncollectible accounts that emphasizes the matching of expenses with revenues is the a. percentage of receivables basis. b. percentage of sales basis. c. lower of cost or market basis. d. direct write-off method. 7. A company just starting business purchased three merchandise inventory items at the following prices: first purchase $880; second purchase $840; third purchase $810. If two items were sold during the period and the company used the LIFO costing method, the gross profit for the period would be how much greater or less than if the FIFO costing method had been used? a. Gross profit would be $70 greater. b. Gross profit would be $70 less. c. Gross profit would be the same. d. Gross profit would be $40 greater. B- 2
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Comprehensive Examination B 8. An error in the physical count of goods on hand at the end of the current period resulted in a $3,000 understatement of the ending inventory. The effect of this error in the current period is to a. overstate cost of goods sold. b. understate cost of goods available for sale. c. overstate gross profit.
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This note was uploaded on 05/08/2008 for the course ACC 220 taught by Professor J during the Winter '08 term at South Central College: Faribault Campus.

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compexam_b - COMPREHENSIVE EXAMINATION B (CHAPTERS 6 - 9)...

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