Question: QUESTION 1 The ABC Company received a $20,000 note from the CDE Company for merchandise CDE purchased. The terms are 5 years and is non-interest
QUESTION 1
The ABC Company received a $20,000 note from the CDE Company for merchandise CDE purchased. The terms are 5 years and is non-interest bearing. Which of the following would be included in an adjusting entry at the end of each year?
| A debit to Notes Receivable Discount | ||
| A credit to Notes Receivable Discount | ||
| A credit to interest expense | ||
| None of the above |
QUESTION 2
The ABC Company provides the following information regarding their inventory of hats.
Cost = $10 each, Replacement value = $8 each, NRV = $12 each and NRV less profit of $6 each. How much should ABC report hats on their balance sheet?
| $10 each | ||
| $8 each | ||
| $6 each | ||
| $10 each |
QUESTION 3
Refer to the following information.
2010 inventory at end of year prices is $100,000, index is 1.00
2011 inventory at end of year prices is $120,000, index is 1.10
2012 inventory at end of year prices is $130,000, index is 1.15
2013 inventory at end of year prices is $110,000, index is 1.20
How much is 2012 inventory at base year prices?
| $132,000 | ||
| $113,044 | ||
| $122,000 | ||
| None of the above |
QUESTION 4
Which of the following represents collateralizing of receivables?
| Pledging | ||
| Factoring with recourse | ||
| Factoring without recourse | ||
| None of the above |
QUESTION 5
Refer to the following information.
2010 inventory at end of year prices is $100,000 index is 1.00
2011 inventory at end of year prices is $120,000 index is 1.10
2012 inventory at end of year prices is $130,000 index is 1.15
2013 inventory at end of year prices is $110,000 index is 1.20
How much is 2013 dollar value LIFO inventory?
| $132,000 | ||
| $126,500 | ||
| $111,500 | ||
| None of the above |
QUESTION 6
The ABC Company factored, without recourse, $40,000 of accounts receivable to the Last National Bank. The Bank charges a 10% fee and 5% for allowances for bad debts. How much cash will ABC receive?
| $40,000 | ||
| $34,000 | ||
| $32,000 | ||
| None of the above |
QUESTION 7
The ABC Company reported $350,000in cash and cash equivalent on their 12/31/2014 balance sheet. Which of the following would not be included in the $350,000 balance?
| Petty cash of $200 | ||
| Cash of $40,000 held in the bank as a compensating balance | ||
| A $10,000 CD that matures on January 15, 2015 | ||
| All of the above would be included in the $350,000 |
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