Question 15 2 Points The following is a single - step income statement for the Bonds Company: Bonds Company Income Statement For the Year Ended December 31,2016 Revenues : Net Sales $ 800,000 Expenses: Cost of Goods Sold $ 280,000 Selling Expenses 135,000 Administrative Expenses 41,800 Interest Expense 36,000 Total Expenses 492,800 Net Income $307,200 If the income statement were prepared in a multiple-step format, income from operations (operating income) would be: A $520,000. B $489,000. C $349,000. D $343,200. Continue Last saved 10:26:18 AM Questions Filter (50) K First Last >|Question 22 2 Point If the seller is to pay the delivery expense of delivering merchandise, delivery terms are stated as A FOB shipping point. B FOB destination. C FOB n/30. D FOB buyer. Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 14 10 16 10 4- f8 fg 144 DIIPage 23 of 50 Question 23 2 Points Which inventory method would a company choose if it wanted to reduce the amount it will owe in income taxes? FIFO B LIFO C Average cost. D Specific identification. Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 * f4 f6 $7 4- f8 4+ 19 F10 DDIPage 24 of 50 Question 24 2 Points After the accounts are adjusted at the end of the fiscal year, Accounts Receivable has a balance of $680,000, the Allowance for Doubtful Accounts has a normal negative contra balance of $89,000, and bad debts expense has a balance of $35,000. What is the net realizable value of the receivables? A $680,000 B $769,000 C $591,000 $89,000 Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 f4 f6 18 fg F10 * f7 4- 144 $ 9%Page 24 of 50 Question 24 2 Points After the accounts are adjusted at the end of the fiscal year, Accounts Receivable has a balance of $680,000, the Allowance for Doubtful Accounts has a normal negative contra balance of $89,000, and bad debts expense has a balance of $35,000. What is the net realizable value of the receivables? A $680,000 B $769,000 C $591,000 $89,000 Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 f4 f6 18 fg F10 * f7 4- 144 $ 9%Page 25 of 50 Question 25 2 Points If deposits from cash sales of $5,500 were recorded incorrectly by a company in its books as a deposit of $4,500. The $1,000 difference would be included on the bank reconciliation as a(n) A addition to the cash balance per books. addition to the cash balance per bank. deduction from the cash balance per bank. D deduction from the cash balance per books. Continue Last saved 10:26:18 AM Questions Filter (50) K First Last > 1 * 15 f6 $10 10 f7 f8 fg DII DDIPage 26 of 50 Question 26 2 Points The inventory data for an item sold by Able Co. for November is as follows: Nov. 1 Inventory 55 units at $25 each 10 Purchase 65 units at $26 each 20 Purchase 75 units at$27each Nov. 30 Ending Inventory: 60 units Units sold: 135 units Using the average cost inventory cost flow method, what is the cost of goods sold onAble's income statement at November 30 (do not round the unit cost, but round the final answer to the nearest dollar)? A $3,510 B $1,560 C) $3,524 D $1566 Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 16 10 $7 F8 4+ fg 141 10 DIIPage 27 of 50 Question 27 2 Points When a sale of merchandise is made on account, the transaction: A increases Cash; increases Sales and therefore, Stockholders' Equity. increases Sales ; decreases Stockholders' Equity. increases Accounts Receivable; increases Sales and therefore, Stockholders' Equity. increases Sales and therefore, Stockholders' Equity; decreases Accounts Payable. Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 f6 f8 fg 144 f10 10 $7 4- 4+Page 28 of 50 Question 28 2 Points A sale of merchandise on account for $8,900 is subject to a 10% sales tax. The amount that should be recorded as sales on the income statement and Accounts Receivable on the balance sheet should be $_ and $ -respectively. $ 8,900; $ 8,900 B $ 8,900; $ 890 C $ 8,900; $9,790 D $ 9,790; $ 9,790 Continue Last saved 10:26:18 AM Questions Filter (50) K First 1 ts * 14 16 $7 f8 fg 144 $10 1- $Page 29 of 50 Question 29 2 Points Which of the following companies would you expect to have a higher percentage of the allowance for doubtful accounts compared to its total receivables? A MGM Casinos . B Google Corporation. C Microsoft Inc. D Wal-Mart. Continue Last saved 10:26:18 AM Questions Filter (50) K First / * f6 4- f8 4+ fg 10 f7 144 % &