Value of Future Payments

.
Referring to Table 2, under the perpetual average cost method, cost of goods sold on the income statement would be_______. (Points: 1)
$1,186
$1,600
$560
$1,746

51.
Referring to Table 2, under the perpetual LIFO method, cost of goods sold on the income statement would be_______. (Points: 1)
$1,760
$540
$1,700
$1,186

52. Using the lower-of-cost-or-market rule of valuing inventory allows the accountant to attain_______. (Points: 2)
consistency
matching
conservatism
full disclosure

53. If the cost of an item of inventory is $80, the current selling price is $100, and the current replacement cost is $75, the amount shown in inventory on the balance sheet under the lower-of-cost-or-market rule is_______. (Points: 2)
$75
$80
$100
$75 or $80

54. If the direct write-off method is used for uncollectible receivables, what account is debited when writing off a customer’s account? (Points: 2)
accounts receivable
allowance for uncollectible accounts
uncollectible-account expense
sales returns and allowances

55. Under the direct write-off method, the entry to record an uncollectible account has the following effect on the financial statements_______. (Points: 2)
increases expenses and decreases liabilities
decreases net income and decreases assets
decreases assets and increases owner’s equity
increases expenses and increases assets

56. A 90-day, 12% note for $20,000 dated July 10 is received from a customer. What is the maturity value of the note? (Points: 2)
$20,000
$20,600
$22,400
$21,200

57. A 60-day, 12% note for $11,000 dated May 15 is received from a customer. The face value of the note is_______. (Points: 2)
$220
$11,220
$10,780
$11,000

58. The interest on a $32,000 note at 9% for three months is_______. (Points: 2)
$1,440
$360
$2,880
$720

59. What is the type of account and normal balance of allowance for uncollectible accounts? (Points: 2)
asset, debit
contra asset, credit
liability, credit
contra liability, debit

60. If the maker of a promissory note fails to pay the note on the due date, the note is referred to as a_______. (Points: 2)
discounted note
dishonored note
uncollectible note
discarded note

61. The person or business to whom the signer of a promissory note promises a future payment is called the_______. (Points: 2)
payee of the note
drawer of the note
maker of the note
principal of the note

62. A critical element of internal control over collections of accounts receivable is_______. (Points: 2)
setting up a petty cash account
the separation of cash-handling and cash-accounting duties
using a check writing machine
depositing the cash from the cash register on a daily basis

63. Inventory held by a business is a(n) _______ and when sold becomes a(n) _______ (Points: 2)
liability, withdrawal
asset, expense
liability, asset
asset, contra asset

64. Inventory turnover indicates how_______. (Points: 2)
quickly inventory is received from the supplier after the order is placed
many days it takes the inventory to travel between the seller’s warehouse and the buyer’s warehouse
rapidly inventory is sold
many days it takes from the time an order is received to the day it is shipped

65.
Refer to Table 1. Under the perpetual LIFO method, ending inventory would be valued at_______. (Points: 1)
$165
$105
$153
$135