1.

Interim statements

Multiple Choice

• Are required by CRA

• Are necessary to achieve full disclosure about a business's operation

• Are usually monthly or quarterly statements prepared in between the traditional, annual statements

• Are required by CRA and are necessary to achieve full disclosure about a business's operations

• All of the above

• 2.

  Damaged or obsolete goods

  Multiple Choice

• Are included in inventory at net realizable value if that is less than cost

• Are not counted as saleable inventory

• Are counted at full cost

• Are not counted as saleable inventory and are included in inventory at net realizable value if that is less than cost

• Are not counted as saleable inventory or are counted at full cost

• 3.

  Which ratio measures the portion of net sales that is gross profit?

  Multiple Choice

• Gross margin ratio

• Net sales ratio

• Gross profit ratio

• Gross margin ratio and gross profit ratio

• All of the above

• 4.

  A company that has operated with a 30% average gross profit ratio for a number of years had $110,000 in net sales during the first quarter of this year. If it began the quarter with $28,000 in inventory at cost and purchased $75,000 of merchandise during the quarter, its estimated ending inventory by the gross profit method is

  Multiple Choice

• $26,000

• $20,000

• $24,000

• $25,000

• $21,000