Question

361) When bonds are issued at a premium and the effective interest method is wsed for smontiation each subsequent interest payment date, the cesh paid is: A) More than if the bonds had been sold at a discount B) Greater than the interest expense C) Less than the interest expense, D) Equal to the interest expense. 362) Of the following inventories I) Raw Materials Inventory, 2) Work in Process lnventory,3) Finished Goods Inventory, how many turn into Cost of Goods Sold directly A) Two Di Three c) One B) None 363) ABC buys widgets for S5 cash and sells them on account for $8. What is the sacri receivable on the books of ABC? A)$8 B) S5 C) $3 D) Impossible to determine from the given information 364) ABC sold inventory for $1,200 that was purchased for $700.ABC reconds which of e following when it sells inventory using a perpetual inventory system? A) Debit Cost of Goods Sold $1,200; credit Inventory $1,200 B) No entry is required for cost of goods sold and inventory. C) Debit Inventory $700; credit Cost ofGoods Sold $700. D) Debit Cost of Goods Sold $700; credit Inventory $700 365) For a journal entry with only two lines, the Sollowing entry is vai Increase in Revenoe, Decrease in Expense. B) True A) False 366) In the P/E ratio A) P is forward looking E is backward looking B) P is backward looking: E is backward looking C) P is forward looking: E is forward looking. D) P is backward looking: E is forward looking 367) The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 t the begining and end of the year, respectively. Net income and sales for the year are幻40,000 and S21000 respectively. What is ABC's return on assets? A) 14.12%. D) 12% C) 15% B) 16% 50 368) The entry to record a monthly payment on an installment note such as a car loan A) Increases expense, increases liabilities, and decreases assets. B) Increases expense, increases liabilities, and increases assets. C) Increases expense, decreases liabilities, and decreases assets D) Increases expense, decreases liabilities, and increases assets. 369) The Finished Goods eventually turn into A) Cost of Goods Sold Expense C) Freight In B) Sales D) Overhead 370) Cost of goods sold $420,000 Sales revenue Nonoperating expenses 10,000 170,000 ng expenses Income tax expense 80,000 What is operating income? A ) $200,000. D) $120,000. C) $380,000 B) $210,000. D $:20.00 50

Answer 1

Question 361

Solution: At each subsequent interest pmt. date the cash paid is greater than interest expense.

Because at each subsequent interest pmt. date, cash pmt remains same but interest expense decreases at each interest pmt date thus, cash payment gets to become greater than interest expense as the time passes

Thus, answer is option B. Greater than interest expense.

Question 362.

Solution: Only Finished goods inventory turns into Cost of goods sold directly. While rest two turn into finished goods inventory then they turn to COGS.

Thus, answer is option C. One

Question 364.

Solution: ABC will debit Cost of goods sold for $700 and credit the inventory for $700.

Because under perpetual inventory system, we keeps recording COGS by the amount of cost of inventory sold together with sales.

Thus, answer is option D.

Question 367.

Solution: Return on assets = Net income / Average total assets

= 240,000 / [(1,500,000 + 1,700,000)/2] = 15% (option C.)