QUESTION
Crow Company sells a single product and had the following goods available for sale in the last accounting period:
What is the ending inventory balance and the cost of goods sold expense if the firm uses the weighted average cost method of inventory valuation?
Ending inventory is $42; cost of goods sold is $244.
Ending inventory is $55; cost of goods sold is $220
Ending inventory is $57.20; cost of goods sold is $228.80.
Ending inventory is $98; cost of goods sold is $188
3 points
QUESTION
Crow Company sells a single product and had the following goods available for sale in the last accounting period:
What is the ending inventory balance and the cost of goods sold expense if the firm uses the FIFO method of inventory valuation?
Ending inventory is $55; cost of goods sold is $231.
Ending inventory is $57.20; cost of goods sold is $228.80.
Ending inventory is $80; cost of goods sold is $206.
Ending inventory is $70; cost of goods sold is $216
3 points
QUESTION
Robin Company sells a single product and had the following goods available for sale in the last accounting period:
What is the ending inventory balance and the cost of goods sold expense if the firm uses the LIFO method of inventory valuation?
Ending inventory is $710; cost of goods sold is $1,250.
Ending inventory is $910; cost of goods sold is $1,050.
Ending inventory is $800; cost of goods sold is $1,160.
Ending inventory is $550; cost of goods sold is $1,410.
3 points
QUESTION
Using the following data for Maroon Company, what are the growth rates for sales, total accounts receivable and the allowance for doubtful accounts? (Answers are rounded to one decimal place.)
(2.3%), (24.0%), (14.2%)
2.4%, 24.4%, 12.5%
2.4%, 22.0%, 14.3%
(2.3%), 24.1%, 12.5%
3 points
QUESTION
Using the following data for Red Company, what percentage is the allowance for doubtful accounts relative to total accounts receivable for 2016 and 2015, respectively? (Answers are rounded to one decimal place.)
4.2% in 2016, 5.2% in 2015
4.0% in 2016, 4.3% in 2015
0.8% in 2016, 0.7% in 2015
8.1% in 2016, 7.2% in 2015
3 points
QUESTION
Assuming Silver Company has the following growth rates, which statement is true regarding the pattern of growth?
The pattern of growth is normal because as sales are decreasing, so are the accounts receivable and the allowance for doubtful accounts.
The pattern of growth is not normal.
The pattern of growth is not normal because sales growth should be at least double the growth of accounts receivable.
The pattern of growth is normal because sales, accounts receivable and the allowance for doubtful accounts' growth rates are all increasing at a fairly consistent rate.
3 points
QUESTION
Assuming Bronze Company has the following growth rates, which statement would explain the pattern of growth rates?
The firm has tightened its credit policy, resulting in fewer bad debts.
The firm may be doing a better job collecting accounts receivable quicker and with fewer bad debts.
The firm may be offering credit to less creditworthy customers in hopes of increasing the declining sales rate.
The firm has declining bad debts as a result of the declining sales.
3 points
QUESTION
Assuming the following valuation schedule for DEF Company, which statement below best analyzes the trends in the schedule?
DEF Company has overestimated bad debt expense each year compared to actual write-offs (deductions).
DEF Company appears to be overestimating the allowance for doubtful accounts every year.
DEF Company appears to be underestimating the allowance for doubtful accounts based on the level of write-offs (deductions) each year.
DEF Company is doing a much better job collecting on accounts receivable in 2016 compared to prior years, as indicated by the decreasing allowance for doubtful accounts balances