Reference no: EM132855634
Questions -
Q1- A company operates a zoo in a city. The company adjusts its accounts at the end of each month. The following account reflects balance AFTER adjusting entries were prepared on April 30th: "Unearned Ticket Revenue 400 TL". The unearned ticket revenue represents tickets sold for future zoo visits. The tickets were sold at 4 TL each on April 1st. During April, twenty of the tickets were used by customers. What is the number of tickets sold on April 1st?
a) 20
b) 80
c) 100
d) 120
e) Other
Q2- A company sells merchandise on account for 1.800 TL to a client with credit terms of x/10, n/30. The client returns 1/6 of merchandise that was damaged, along with a check (çek) that amounts to 1.470 TL to settle the account within the discount period. What is x?
a) 2
b) 4
c) 6
d) 8
e) Other
Q3- The accounts of a company for a specific period includes the following items: (a) Net sales 900.000 TL; (b) Gross profit 320.000 TL; (c) Beginning inventory 100.000 TL; (d) Purchase returns and allowances 8.000 TL; (e) Freight payments 10.000 TL; (f) Purchases of inventory 570.000 TL. What would be the the ending inventory at the end of that period?
a) 77.000 TL
b) 657.000 TL
c) 23.000 TL
d) 580.000 TL
e) Other
Q4- If the general price level in a market has continuously increased for an inventory product, the _______ method will result in a _____ valued ending inventory than if the _____ method had been used.
a) LIFO - higher - FIFO
b) FIFO - higher - LIFO
c) FIFO - lower - LIFO
d) LIFO - equally - FIFO
e) Other
Q5. A company reported the following data at the end of 2020: (a) Sales revenue 1.500.000 TL; (b) Cost of goods sold (based on an ending FIFO inventory of 250.000 TL) 800.000 TL; (c) Gross margin 700.000 TL; (d) Operating expenses 300.000 TL; Income before taxes 400.000 TL. The tax rate is 30%. The company is considering a switch from FIFO to LIFO. The company has determined that on a LIFO basis, the ending inventory would have been 200.000 TL. What effect, if any, would the proposed change have on the company's net income? Less or more net income? and at what amount?