Question

339. For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Increase in Expense.
     1. False                                                                      B) True

338. Allocation is primarily as issue in
     1. Measuring Income                                                B) None of the other three

C) Measuring Assets                                                  D) Both Measuring Assets and Income

338. ABC has beginning inventory for the year of $18,000. During the year, ABC purchases inventory for $230,000 and has cost of goods sold equal to $233,000. ABC's ending inventory equals:

A) $21,000.                       B) $18,000.                      C) $15,000.                                          D) $19,000.

338. Of the following inventories 1) Raw Materials Inventory, 2) Work in Process Inventory, 3) Finished Goods Inventory, how many turn into Cost of Goods Sold directly?
     1. Two                              B) None                            C) One D) Three

339. ABC buys widgets for $5 cash and sells them on account for $8. What is the sacrifice value of a receivable on the books of ABC?
     1. $8
     2. $5
     3. $3
     4. Impossible to determine from the given information
340. For a journal entry with only two lines, the following entry is valid: Increase in Revenue, Decrease in Expense.
     1. False                                                                      B) True
341. In the P/E ratio
     1. P is forward looking; E is backward looking.
     2. P is backward looking; E is backward looking.
     3. P is forward looking; E is forward looking.
     4. P is backward looking; E is forward looking.

342. Cost of goods sold $420,000 Sales revenue 800,000 Nonoperating expenses 10,000 Operating expenses 170,000 Income tax expense 80,000

     370)

     What is operating income?

     A) $200,000.                     B) $210,000.                    C) $380,000.                                          D) $120,000.

Answer 1

	**I have not done questions which I'm not sure of.
Q1)	Option A) False
	There cannot be a journal entry decreasing owners equity and increasing expenses because
	both results in debit to respective accounts, which is basically not valid
Q3)	Option C) $15000
	Ending Inventory = Opening Inventory + Purchases - Cost of Goods sold
Q6)	Option A) False
	There cannot be a journal entry decreasing expenses and increasing income because
	both results in credit to respective accounts, which is basically not valid
Q8)	Option B) $210000
	Operating Income = Sales revenue - Cost of Goods Sold - Operating Expenses