73. When we collect Sales tax we DR Cash and Credit
    1. ALiability B) AnExpense C)Revenue D) An Asset

74. How many of the following events would require an expense to berecorded? Ordering office supplies

Hiring a receptionist

Paying employees'salaries for the current month Receiving but not paying a currentutility bill Paying for insurance in advance

1. One. B)Four. C)Three. D) Two.

75. The balance sheet of ABC reports total assets of $1,500,000 and$1,700,000 at the beginning and end of the year, respectively. Netincome and sales for the year are $240,000 and $2,000,000,respectively. What is ABC's profit margin?

A)15%. B)12%. C)16%. D) 14.12%.

76. Assuming a current ratio of 1.2 and an acid-test ratio of 0.80,how will the purchase of inventory with cash affect each ratio?
    1. No change to the current ratio and decrease the acid-testratio.
    2. Decrease the current ratio and decrease the acid-testratio.
    3. Increase the current ratio and increase the acid-testratio.
    4. Decrease the current ratio and increase the acid-testratio.

77. If a company overstates its ending balance of inventory in year1 and it records inventory correctly in year 2, which one of thefollowing is true?
    1. Net income is overstated in year2. B) Retained earnings is overstated in year 1.

C) Cost of goods sold is overstated inyear 1. D) Net income is understated in year 1.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 73 Correct Option is A Liability Sales ... View the full answer