#3,4,5 & 6

2. On October 31, 2012, BBB Inc.'s cash account had a balance of $16,451.03. After reviewing the bank statement, BBB found it had three outstanding cheques totalling $5,643.01. Its bank account was credited for $12.19 of interest earned on the account balance, and it was charged $9.00 of service fees. BBB's bank statement dated October 31, 2012 would report a balance of: A. $ 22,090.85. B. $ 10,811.21. C. $ 22,097.23. D. $ 16,454.22. 3. Atlantic Inc. reported the following amounts at the end of its first year of operations, December 31, 2012: share capital $120,000; sales revenue $400,000; total assets $340,000; dividends $20,000; and total liabilities $200,000. Its total expenses for 2012 would be: A. $340,000 B. $320,000 C. $ 300,000. D. $360,000. 4. Company A has a receivables turnover ratio of 5.6 in 2012, which is lower than in 2011. Company B has a receivables turnover ratio of 11.3 in 2012, which is higher than in 2011. All other things equal: A. Company A appears to better manage its receivables than Company B. B. In 2012, Company A has a lower average collection period than Company B. C. Company B appears to better manage its receivables than Company A. D. Company B's average collection period is rising. 5. Which of the following transactions does not involve an accrual? A. Recording interest eamed that will be received in the next period. B. Recording operating expense incurred but not yet paid. C. Recording salary expense incurred but not yet paid. D. Recording the pre-payment of two years' worth of insurance. 6. Mackie Company provided $25.500 of services on account, and collected $18,000 from customers during the year. The company also incurred $17,000 of expenses on account, and paid $15,400 to suppliers for goods and services. As a result of these events: A. Total assets would increase B. Total liabilities would increase C. Total equity would increase D. All the elements of the accounting equation would increase