Multiple Choice (2pts. Each) Choose the best possible answer. 1. Which one of the following is a transaction that may appear on the bank statement, but not in the company's records? e. Outstanding Checks b. Deposits in transit- c. Service Charges yes d. Liabilities - 2. Receivable Turnover equals? Ves y Net Sales/Average Accounts Receivable b. Net Income/Assets c. 365 Days/Receivable Turnover d. 365 Days/Payables Turnover 3. Under the losses from bad debts are matched against the sales they help to produce. Allowance Method b. Percentage of Net Sales Method c. Accounts Receivable Aging Method d. Direct Charge-Off Method 4. Inventory costs include the following: a. Invoice price less purchase discount c. Freight-in, including insurance in transit b. Applicable taxes and tariffs d. All of the above 5. The rule requires that the inventory be written down to the lower value and that a loss be recorded. a. Lower-of-cost-or-market b. Goods Flow c. Inventory d. LIFO Liquidation 6. Under inventory is priced at the average cost of the goods available for sale during the accounting period. a. LIFO b. Specific Identification Method c. FIFO d. Average-Cost Method 7. The sale or transfer of accounts receivable is called: a. Uncollectable Accounts b. Factoring c. Cash Equivalents d. Securitization 8. A is an unconditional promise to pay a definite sum of money on demand or at a future date. a. Notes Payable . Promissory Note c. Notes Receivable d. Maturity Date 9. When the maker of a note does not pay the note at maturity, it is said to be: a. Accrued Interest b. Maturity Value Dishonored Note d. Duration of a Note Company has cash of $40,000, net accounts receivable of $90,000, and net sales of $720,000. Last year's net accounts receivable were $70,000. Compute the following ratios: (a) receivable turnover uncollected