Question

b.) measures Will III ligner Income taxes than FIFO. 39. Inventory turnover a. is computed by dividing average inventory by cost of merchandise sold measures the relationship between the volume of goods sold and amount of inventory carried c. increases the risk of loss from damaged merchandise d. is computed by dividing the beginning inventory plus the ending inventory by two 40. The number of days' sales in inventory a. measures the length of time it takes to acquire, sell, and replace the inventory b. is computed by dividing the cost of merchandise sold by 365 c. measures the length of time it takes to sell the merchandise on credit and collect the account receivable d. is about the same for all industries 41. Which one of the following below reflects a weak internal control system? a. all employees are well supervised b. a single employee is responsible for comparing a receiving report to an invoice c. all employees must take their vacations d.) a single employee is responsible for collecting and recording of cash 42. The debit balance in Cash Short and Over at the end of an accounting period is reported as a. an expense on the income statement b. income on the income statement c. an asset on the balance sheet d. a liability on the balance sheet 43. The term cash includes a. coins, currency (paper money), checks b. money orders, and money on deposit that is available for unrestricted withdrawal c. short-term receivables d. both a and b 44. A bank statement a. is a credit reference letter written by the company's bank. b. lets a company know the financial position of the bank as of a certain date c. is a bill from the bank for services rendered. (d. shows the activity that increased or decreased the company's account balance.

Answer 1

39. Option B

explanation

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period. A company can then divide the days in the period by the inventory turnover formula to calculate the days it takes to sell the inventory on hand. Calculating inventory turnover can help businesses make better decisions on pricing, manufacturing, marketing and purchasing new inventory

Formula

Inventory turnover ratio=Sales/average inventory

40.Option A

Explanation

The financial ratio days' sales in inventory tells you the number of days it took a company to sell its inventory during a recent year

Formula

=Ending inventory/Cost of good sold × 365

41.Option D

Reason

Division of work is important if single person have power to collect and record money in books of accounts.

He may miss use such power, not recording recipient on timely base or he utilise money and enter in books when he have.

42.Option A

Explanation

A negative result represents a cash short amount, while a positive number represents a cash over amount. ... Debit your cash short and over account in your journal entry by the amount of cash short. This represents an expense. Alternatively, credit your cash short and over account by the amount of cash over

43. Option D

The term cash includes a. Money orders, and money on deposit that is available for unrestricted withdrawal. ... Both "coins, currency (paper money), checks" and "money orders, and money on deposit that is available for unrestricted withdrawal"

44. Option D

Bank statement shows inflow and outflow of money of entity/individual during the year