Practice Final Exam1.When services are performed on account (on credit), what is the accounting effect for the company that provides the services?
2.Which of the following entities is charged with the development and promulgation of financial accounting standards in the United States?
3.A business purchased merchandise for $15,000 on account, terms are 2/10, n/30. If $2,600 of the merchandise was returned and the remaining amount due on the account was paid within the discount period. The purchase discount would be?
4.You have purchased 100 units of product X, which has a list price of $13.60 per unit. Because you are a wholesaler, you are granted a trade discount of 19.3%. The cash discount terms are 2/6, n/45. How much will you pay in total for product X assuming that you pay for the product within 4 days of purchase?
5.Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 3.5% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is $243,000, and the Allowance for Doubtful Accounts has a credit balance of $4,300 before adjustments at year-end. The Bad Debt Expense for 2016 will be:
6.In which order are current assets listed on the balance sheet?
7.If a company collects a $3,500 account receivable, what is the impact of this activity on the current ratio and the working capital, respectively?
8.ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. During the year, the company also borrowed an additional $320,000 from the bank. What was total assets onABC's balance sheet at the end of the year last year?