Reference no: EM133162143
Questions -
Q1. Tamara Corporation leased executive limousines under terms of $20,000 to be paid at theinception of the lease, and four equal annual payments of $30,000 to each be paid thereafter on the anniversary date of the lease. The implicit interest rate in the lease is 11%. What is the amount of the first year's interest expense?
A) $13,200.
B)$10.238.
C) $33,200.
D) $15,543.
Q2. Dollar-value LIFO:
A) Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs
B) Increases the recordkeeping costs of LIFO.
C) Only is allowed for internal reporting purposes.
D) None of the above is correct
Q3. In a period when inventory costs are falling, the lowest taxable income is most likely reported by using the inventory method of:
A. Weighted-average.
B. LIFO.
C. Moving-average.
D. FIFO.
Q4. During periods when inventory costs are rising, cost of goods sold will most likely be:
A. Higher under FIFO than LIFO.
B. Higher under FIFO than average cost.
C. Lower under average cost than LIFO.
D. Lower under LIFO than FIFO.
Q5. Valuation of inventories requires the determination of all of the following except
A) The costs to be included in inventory.
B) The physical goods to be included in inventory.
C) The cost of goods held on consignment from other companies
D) The cost flow assumption to be adopted.
Q6. At the close of its first year of operations, December 31, 2017, Jordan Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2017, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its balance sheet at December 31, 2017, as accounts receivable before the allowance tor doubtful accounts?
A) $670.000
B) $590.000
C) $490.000
D) $440,000
Q7. Sarah Corporation had a 1/1/2020 balance in the Allowance for Doubtful Accounts of $15,000. During 2020, it wrote off $10,800 of accounts and collected $3,150 on accounts previously written off. The balance in Accounts Receivable was $300,000 at 1/1 and $360,000 at 12/31. What should Sarah report as its Allowance for Doubtful Accounts at 12/31/20?
A) $7,200.
B) $7,350.
C) $10,350.
D) $18,000.
Q8. Merchandise sold FOB destination indicates that:
A. The seller holds title until the merchandise is received at the buyer's location.
B. The merchandise has not yet been shipped.
C. The merchandise will not be shipped until payment has been received.
D. The seller transfers title to the buyer once the merchandise is shipped.
Q9. Merchandise sold FOB shipping point indicates that:
A. The seller holds title until the merchandise is received at the buyer's location
B. The merchandise has not yet been shipped.
C. The merchandise will not be shipped until payment has been received.
D. The seller transters title to the buyer once the merchandise is shipped.
Q10. In a period of rising costs, which inventory valuation method would a company likely chooseif they want to have the highest possible balance of inventory on the balance sheet?
A. Weighted-average cost.
B. FIFO.
C. LIFO.
D. Periodic.