A) $6,000. B) $12,000. C) $18,000. D) $9,000.
$182 million; and other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt,
$23 million. Based on these amounts, what is the acid-test ratio?
A) 3.86. B) 1.47. C) 2.84. D) 2.00.
C) Increase only stockholders' equity. D) Increase only liabilities.
Correct answer is A. Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting |
Explanation: Periodic inventory accounting is less expensive to maintain than perpetual accounting because in periodic inventory we calculate inventory at a specific time interval . Hence, we don’t need to incur expense on daily basis as in the case of perpetual accounting. |
Correct Answer is: $ 9000 | ||||
Explanation: | ||||
Inventroy turnover ratio= | Cost of goods sold/ Average inventroy | |||
6= | Cost of goods sold/ 1500 | |||
Cost of goods sold= | 1500*6 | |||
$9,000 | ||||
Average Inventory= | $ 2000+1000/2 | |||
1500 |
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory Accounting is more expensive to maintain than Perpetual Inventory Accounting There is no difference between the expense of using Periodic Inventory Accounting versus Perpetual Inventory Accounting ABC's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods sold for the year must equal: A) $6,000. B) $12,000. C) $18,000. D) $9,000. In January, 2018, ABC....
5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts Payable B) Purchase Returns and Allowances C) Inventory D) Purchases 6) Which of the following accounts is not a contra account? A. Inventory B. Accumulated Amortization C. Sales Returns and Allowances D. Sales Discounts 7) To calculate the gross margin percentage, A. Divide net sales by net income B. Divide current assets by current liabilities C. Divide total liabilities by total assets D. Divide...
THANK YOU SO MUCH I WILL BE SURE TO LEAVE A GREAT RATING AND NOTE!!!!! 20. The primary difference between the periodic and perpetual inventory systems is that a periodic system determines the inventory on hand only at the end of the accounting period periodic system provides an easy means to determine inventory shrinkage periodic system records the cost of the sale on the date the sale is made periodic system keeps a record showing the inventory on hand at...
It said april 12 Accounts recievable- continental was wrong.
Exerclse 7-2 Accounting for credit card sales LO C1 Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental Card. Continental assesses a 2.5% charge on sales for using its card. Apr. 8 Sold merchandise for $8,48 (that...
Exercise 9-2 Accounting for credit card sales LO C1 Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental Card. Continental assesses a 2.5% charge on sales for using its card. Apr. 8 Sold merchandise for $4,600 (that had cost $2,956) and accepted the customer's Suntrust Bank...
1) ABC Company’s December 31, 2017 inventory value was reported $ 500,000. The physical inventory count value was $ 475,000. The adjusting entry required to record the discrepancy was: A) Debit Cost of Goods Sold $ 25,000 and credit inventory $ 25,000 B) Debit inventory $ 25,000 and credit Cost of Goods Sold $ 25,000 C) Can’t be determined D) Debit Cost of Goods Sold $ 12,500 and credit inventory $ 12,500 2) Credit terms of 1/10 n/30 indicates that...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
EX#2 - Glossary: Define an inventory system in which the company does not maintain detailed records of goods on hand throughout the accounting period and determines cost of goods sold only at the end of the accounting period. A Perpetual inventory system Periodic inventory system Just-in-Time Inventory System 0. Specific Identification Inventory Method TEXA2-Glossary: A perpetual inventory System Als updated each time an Her is purchase and updates cost of goods sold. B. Uses optical scanners and bar codes to...
Accounting records for Ontario Tire Ltd. yield the following data for the year ended December 31, 2017 (amounts in thousands): (Click the icon to view the accounting records.) Requirements 1. Journalize Ontario Tire's inventory transactions for the year under (a) perpetual system and (b) the periodic system. Show all amounts in thousands 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? 3. Report ending inventory, sales, cost of goods sold, and...
5
total journal entries
Requirement 1a. Joumalize Allegheny Tire's inventory transactions for the year under the perpetual system (Record debits first, then credits. Explanations are not required. Show all amounts in thousands) The first transaction is the purchase of inventory. Record the entry Debit December The next transaction is the sale of Inventory. Record the entry. (Do not yet record the cost related to the sale. We do this in the next journal entry) Journal Entry Date Accounts Debit Credit...