1.Which of the following would be included in cash and cash equivalent?
Treasury bills maturing in 100 days
A note receivable due in 10 days
A post-dated check that can be cashed in 15 days
None of the above
2.When calculating the conventional retail inventory method which statement is correct regarding normal spoilage?
It is included in the cost ratio
It is not included in the cost ration
It is included as part of cost
None of the above
3.When calculating the average cost retail inventory method which statement is correct regarding abnormal spoilage?
It is included in the cost ratio
It is not included in the cost ration
It is included as part of cost
None of the above
4.A not receivable is issued with a face interest rate 4% less than the market rate, which is a true statement?
A debit to note discount is created
A credit to note discount is created
The entry for the recording actual note will reflect the discount
None of the above
5.A company accepted a 60 day note receivable in exchange for an outstanding accounts receivable. Which of the following statements is true?
Normally, the note receivable will be recorded at its present value
Normally, the note receivable entry will reflect a discount or premium
Normally, the entry would simply be a debit to the note and credit he accounts receivable at the amount of the accounts receivable
None of the above
6.Given the following information: inventory for ABC CO. had ending inventory at base year prices of $100,000 of which $20,000 was added last year. This is the first year(i.e.. base year is last year)and the index is 1.04 for the current year. What is the amount of Dollar Value LIFO inventory for the current year
100,800
120,800
99,230
None of the above
7.A 2 year note receivable pays 8% when the market rate of interest is 6% Which statement is true
A discount of note receivable is created
A premium on note receivable is created
No discount of premium is created
None of the above
8.What type of account is Discount of note receivable
An asset
A liability
A contra asset
A contra liability