Question

23) Which of the following was passed by Congress in response occurred in the early 2000s? A) Federal Account in response to financial statement frauds that C) Clayton Act B) Securities and Exchange Act D) Sarbanes-Oxley Act 24) The LIFO inventory cost flow assumes that the A) assumed to be the last ones to be sold. B) assumed to be the first ones included endin C) not included in cost of goods sold or ending inve D) assumed to be the first ones sold. at the cost of the newest goods purchased are: actors exist when fraud occurs. Which of the following is not one of 25) Research has found that three factors exist whe the three factors of the fraud triangle? A) Ability to rationalize the fraud C) Lack of a code of ethics B) Incentive to commit fraud D) Opportunity to commit fraud $40,000, beginning inventory of $5,000, purchases of $25,000, and D) $23,000 26) Bijoux Company has sales of $40,000, beginning in ending inventory of $7.000. The cost of goods sold is: A) $17,000 B) $40,000 C) $30,000 27) In a bank reconciliation, interest revet A) added to the book balance C) added to the bank balance reconciliation, interest revenue earned on your bank account is: B) deducted from the book balance D) deducted from the bank balance 28) Recording a Lower of Cost or Market (LCM) adjustment involves which of the following gene journal entries? A) Debit Sales Revenue and Inventory B) Debit Loss on Goods Sold and credit Inventory C) Debit Retained Earnings and credit Inventory D) Debit Cost of Goods Sold and credit Inventory amnany's monthly bank statement showed the ending balance of cash of $18,500. The bank sation for the period showed an adjustment for a deposit in transit of $1,500, outstanding check NSF check of $700, bank service charges of $30 and the EFT from a customer in payment omer's account of $1,500. 29) Use the information above to answer the following question. What is the up-to-date endin balance? A) $17,230 B) $19,270 D) $19,00 C) $18,000

Answer 1

23) Answer is Option d.

Sarbanes Oxley Act was passed by congress in response to financial statements frauds that occured in the early 2000's.

24) Answer is Option d.

In LIFO method, it assumes that the newest goods purchased are the first one's to be sold.

25) Answer is Option c.

According to Research 3 factors exist when a fraud occurs;

1. Incentive, 2. Oppurtunity and 3. Rationalisation.

26) Answer is Option d.

COGS= Op stock + Purchases - Closing stock

COGS= $ 5000 + $ 25000 - $7000

COGS= $ 23000.

27) Answer is Option a.

In Bank reconciliation, Interest revenue earned on your bank account is added to book balance.

28) Answer is Option b.

Entry for recording a LCM Adjustment is as follows;

Loss on goods sold acc. Dr

To Inventory acc. Cr    

29) Answer is Option c.

Actually the question is not having clarity because you have put your hand above the question,

So i am assuming the amount of outstanding cheques is $ 2000.

So Cash balance is $18,500

Outstanding cheques is $ 2,000

NEFT From customer is $ 1,500

So, Up to date Cash balance is $ 18,000 ( $ 18,500 + $1,500 - $ 2,000) .

Thank you.