When we collect Sales tax we DR Cash and Credit A Liability B) An Expense &
- When we collect Sales tax we DR Cash and Credit
- A Liability B) An Expense C) Revenue D) An Asset
- How many of the following events would require an expense to be recorded? Ordering office supplies
Hiring a receptionist
Paying employees' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance
- One. B) Four. C) Three. D) Two.
- 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. Net income 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%.
- 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?
- No change to the current ratio and decrease the acid-test ratio.
- Decrease the current ratio and decrease the acid-test ratio.
- Increase the current ratio and increase the acid-test ratio.
- Decrease the current ratio and increase the acid-test ratio.
- If a company overstates its ending balance of inventory in year
1 and it records inventory correctly in year 2, which one of the
following is true?
- Net income is overstated in year 2. B) Retained earnings is overstated in year 1.
C) Cost of goods sold is overstated in year 1. D) Net income is understated in year 1.
Homework Answers
73. Correct Option is - A Liability (Sales Tax Payable)
74. Correct option is D) Two.
Explanation
Ordering office supplies - No expense required to be booked
Hiring a receptionist - No expense required to be booked
Paying employees' salaries for the current month - Expense should be booked
Receiving but not paying a current utility bill Expense should be booked
Paying for insurance in advance -No expense will be booked. Only an asset (Prepaid Insurance) will be created.
75. Correct answer is Option B) 12%.
Explanation
Profit Margin =Net Income/Net Sales = 240000/2000000 = 12%
76.The correct option is - A) No change to the current ratio and decrease the acid-test ratio.
Explanation
Current Ratio = Current Assets/Current Liablities
Quick Ratio = Quick Assets/Current Liabilities = (Cash+Marketable Securities+Accounts Receivables)/Current Liabilities
77. The correct option is B) Retained earnings is overstated in year 1.
Explanation
If ending balance of inventory is overstated, Cost of Goods will be
lower resulting in higher net income and retained earnings.
Add Answer to:
When we collect Sales tax we DR Cash and Credit
A
Liability
B) An
Expense &
please I am having a lot of problems with the questions above .I am getting ready for the final this week.Can you please answer all of them . Tab 07) How many of the following events would requ...
please I am having a lot of problems with the questions above .I
am getting ready for the final this week.Can you please answer all
of them .
Tab 07) How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employces' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance A) One D)Iwo. C) Three. B) Four 08) The balance sheet...
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The Charleston Company purchases a machine on 1/1/18:
The book value at 12/31/20 will be:
Select one:
a. $16,250
b. $19,750
c. $17,000
d. $13,750
e. $22,500
2.
Given the following data:
Net Income is:
Select one:
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d. Understated $15
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2....
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please I am having a lot of problems with the questions above .I
am getting ready for the final this week.Can you please answer all
of them .
Tab 07) How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employces' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance A) One D)Iwo. C) Three. B) Four 08) The balance sheet...
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1.
The Charleston Company purchases a machine on 1/1/18:
The book value at 12/31/20 will be:
Select one:
a. $16,250
b. $19,750
c. $17,000
d. $13,750
e. $22,500
2.
Given the following data:
Net Income is:
Select one:
a. Overstated $24
b. Understated $6
c. Overstated $16
d. Understated $15
e. Understated $14
3.
The Bozeman Company had current assets of $500 and current
liabilities of $400 prior to the following transactions:
1. Collection of an account receivable, $100
2....
98) If current assets exceed current liabilities, prepaying an expense on the last day of the year will: A) decrease the current ratio. B) increase the acid-test ratio. C) decrease the acid-test ratio. D) increase the current ratio.
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