multiple choice

View x 2 A. > Heading 1 Heading 2 Question 1 MCQs (Cont'd) 6 7 a 8 On June 1, 2018, Coast Financial loaned Barr corporation $300,000, receiving in exchange a one-year, 12 percent per year note receivable. Coast ends its fiscal year on December 31 and makes adjusting entries to accrue interest eamed on all notes receivable. The interest eamed on the note receivable from Barr Corporation during 2018 will amount to: a $36,000 b $28,000 $18,000 d $21,000 In general terms financial assets appear in the balance sheet at (one correct answer): Face Value b Current Value c Cost d Estimated future sales value Pudget Sound Co. sold marketable securities costing $80,000 for $92,000 cash. In the company's journal entry, the entry will include (Identify all of the correct answers): a A credit to marketable securities of 892.000 b A credit to marketable securities of $80,000 A debit to cash of $92,000 A credit to unrealized gain of S12,000 The primary purpose of an inventory cost flow assumption is to one correct answer): Increase inventory tumover. b Increase gross profit Determine which unit costs are assigned to inventory, and which are assigned to the cost of goods sold. Minimize taxable profit during periods of rising prices. During a period of steadily rising prices, which one of the following inventory valuation methods is likely to result in the highest cost of goods sold? Weighted average cost b FIFO LIFO Specific Identification d 9 d 10 c d