Question 1 - The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of

Question 1 - The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of $14,000 and ending inventory of $8,000.  The cost of purchases for 200X was:

$12,000

$10,000

$  9,000

$16,000   

Question 2 - Which of the following statements are true regarding inventory?

I.   The cost removed from inventory when goods are sold and shown on the income statement as cost of goods sold.

II. Cost of goods sold is an expense on the income statement.

III. Beginning inventory plus purchases is the goods available for sale.

IV. Goods available for sale minus ending inventory equals the cost of goods sold.

I and III 

I and II 

I, II and III 

All are true

Question 3 - Which of the following best describes the proper presentation of accounts receivable in the financial statements?

Accounts receivable plus the Allowance for Doubtful Accounts in the asset section of the balance sheet.

Accounts receivable in the asset section of the balance sheet and the Allowance for Doubtful Accounts in the expense section of the income statement 

Accounts receivable less Bad Debt Expense in the asset section of the balance sheet.

 Accounts receivable less the Allowance for Doubtful Accounts in the asset section of the balance sheet.

Question 4 - A company lends its CEO $150,000 for 3 years at a 6% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for: 

$9,000 

$4,500     

$27,000 

$13,500

Question 5 - An allowance for doubtful accounts is a contra asset account paired with:

Expenses 

Cash 

Accounts Receivable 

Net Income

Question 6- Use the following information to answer questions 1 - 4:

                      Date        Units         Unit CostTotal Cost

Beginning inventory1-Jan        120              $8$960

Purchases              15-Jan        380               $9$3,420

Purchaes              24-Jan        200          $11       $2,200

Total                                                  $6,580

Assume Post Company uses a periodic inventory system, which shows the following for the month of January. Sales totaled 240 units.  What is the cost of the 240 units sold under the FIFO inventory method?

$6,580 

$2,040   

$2,560 

$5,620

Question 7 - What is the cost of the 240 units sold under the LIFO inventory method?

$6,580 

$2,560   

$2,040 

$5,620

Question 8- What is the cost of ending inventory using the FIFO inventory method?

$6,580 

$4,540   

$4,020 

$5,620

Question 9 - What is the cost of ending inventory using the LIFO inventory method?

$6,580 

$4,540 

$4,020     

$5,620

Question 10 - 

Sales Revenue$800

Beginning Inventory$100

Purchases$700

Available for Sale?

Ending Inventory$500

Cost of Goods Sold?

Gross Profit?

Operating Expenses$200

Net Income ?

The missing dollar amounts are:

Goods Available for Sale – $800

Cost of Goods Sold – $300

Gross Profit – $500

Net income - $300

Goods Available for Sale – $900

Cost of Goods Sold – $300

Gross Profit – $500

Net income - $400

Goods Available for Sale – $800

Cost of Goods Sold – $600

Gross Profit – $200

Net income - $50

Goods Available for Sale – $800

Cost of Goods Sold – $300

Gross Profit – $400 

Net income - $400

Question 11 -

Sales Revenue$900

Beginning Inventory$200

Purchases$700

Available for Sale?

Ending Inventory?

Cost of Goods Sold?

Gross Profit?

Operating Expenses$150

Net Income$0

The missing dollar amounts are:

Goods Available for Sale – $300

Ending Inventory – $150

Cost of Goods Sold – $600

Gross Profit – $300

Goods Available for Sale – $900

Ending Inventory – $150

Cost of Goods Sold – $750

Gross Profit – $150

Goods Available for Sale – $300

Ending Inventory – $150

Cost of Goods Sold – $750

Gross Profit – $100

Goods Available for Sale – $300

Ending Inventory – $100

Cost of Goods Sold – $800

Gross Profit – $200 

Question 12 

Sales Revenue?

Beginning Inventory$150

Purchases?

Available for Sale?

Ending Inventory$250

Cost of Goods Sold$200

Gross Profit$400

Operating Expenses$100

Net Income?

The missing dollar amounts are: 

Sales Revenue - $600

Purchases - $250

Goods Available for Sale – $500

Net income - $300

Sales Revenue - $800

Purchases - $300

Goods Available for Sale – $450

Net income - $500

Sales Revenue - $600

Purchases - $300

Goods Available for Sale – $450

Net income - $300

Sales Revenue - $600

Purchases - $200

Goods Available for Sale – $350

Net income - $300

Question 13 

Sales Revenue$800

Beginning Inventory?

Purchases$600

Available for Sale?

Ending Inventory$250

Cost of Goods Sold?

Gross Profit?

Operating Expenses$250

Net Income$100

The missing dollar amounts are:

Beginning Inventory - $100

Goods Available for Sale – $600

Cost of Goods Sold – $350

Gross Profit – $350

Beginning Inventory - $300

Goods Available for Sale – $500

Cost of Goods Sold – $550

Gross Profit – $450

Beginning Inventory - $200

Goods Available for Sale – $800

Cost of Goods Sold – $450

Gross Profit – $350

Beginning Inventory - $100

Goods Available for Sale – $700

Cost of Goods Sold – $450

Gross Profit – $350