1.The factor which determines whether or not goods should be included in a physical count of inventory is
a.physical possession.
b.legal title.
c.management’s judgement.
d.whether or not the purchase price has been paid.

2.If goods in transit are shipped FOB shipping point by a carrier named by the buyer
a.the seller has legal title to the goods until they are delivered.
b.the buyer has legal title to the goods when a public carrier accepts the goods from the seller.
c.the transportation company has legal title to the goods while the goods are in transit.
d.no one has legal title to the goods until they are delivered.

3.If goods in transit are shipped FOB destination
a.the seller has legal title to the goods until they are delivered.
b.the buyer has legal title to the goods when a public carrier accepts the goods from the seller.
c.the transportation company has legal title to the goods while the goods are in transit.
d.no one has legal title to the goods until they are delivered.

4.Per its January 31, 2009 physical inventory count, Yager Company has ,000 in inventory on hand at year end. In addition, at year end the company has ,400 in merchandise in transit purchased from a supplier shipped FOB destination. Included in its physical inventory is ,800 in goods held on consignment from a local manufacturer. How much inventory should be reported on the company’s January 31, 2009 balance sheet?
a.,000
b.,400
c.,600
d.,200

5.“Goods on Approval”
a.are considered sold when removed from the seller’s premises regardless of whether or not legal title has transferred to the buyer.
b.should be included in the seller’s physical inventory unless legal title has passed to the buyer.
c.are also called consigned goods.
d.are not considered to be sold until the buyer has paid a cash deposit to the seller.

6.Independent internal verification of the physical inventory process occurs when
a.the employee is required to count all items twice for sake of verification.
b.the items counted are compared to the inventory account balance.
c.a second employee counts the inventory and compares the result to the count made by the first employee.
d.all prenumbered inventory tags are accounted for.

7.An employee assigned to counting computer monitors in boxes should
a.estimate the number if there are a large quantity to be counted.
b.read each box and rely on the box description for the contents.
c.open each box and check that the box contains a monitor.
d.rely on the warehouse records of the number of computer monitors.

8.After the physical inventory is completed,
a.quantities are listed on inventory summary sheets.
b.quantities are entered into various general ledger inventory accounts.
c.the accuracy of the inventory summary sheets is checked by the person listing the quantities on the sheets.
d.unit costs are determined by dividing the quantities on the summary sheets by the total inventory costs.

9.All of the following can be involved in taking a physical inventory count except
a.counting.
b.measuring.
c.storing.
d.weighing.

10.Westcoe Company’s goods in transit at December 31 include sales made
(1)FOB destination(2)FOB shipping point
and purchases made
(3)FOB destination(4)FOB shipping point
Which items should be included in Westcoe’s inventory at December 31?
a.(2) and (3)
b.(1) and (4)
c.(1) and (3)
d.(2) and (4)

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Does anyone know how to look for the Gross profit margin of a company on a Balance sheet? I know it’s gross profit/Net sales revenue. But on the balance sheet those aren’t stated.

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On ameritrade.com where can i find the actual figure of the company’s SALES of the last 12 months. I see ameritrade shows the PSR number but i want the actual number for the sales and i can’t find it in balance sheet, nor income statement, nor cash flow nor earnings. Does ameritrade.com offer the actual Sales number for companies or not? Maybe it’d be under revenue? if not, where is it?

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I’m trying to figure out the accounts receivable turnover (annual credit sales divided by accounts receivable) and average collection period (accounts receivable divided by total credit sales/365). And can’t find the annual credit sales, accounts receivable, and total credit sales on the financial statements (balance and income statement). Anyone know where to locate them?

http://finance.yahoo.com/q/bs?s=KO+Balance+Sheet&annual

http://finance.yahoo.com/q/is?s=KO+Income+Statement&annual

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We just started the chapter relating Accounts Receivable to Bad Debts Expense and I’m kind of lost, have this horrible mind block. The question is as follows:

At December 31, 2009, Leis Co. reported the following information on its balance sheet,
Accounts Receivable 0,000
Less: Allowance for doubtful accounts ,000

During 2010, the company had the following transactions related to receivables.
1. Sales on accounts ,200,000
2. Sales returns and allowances 50,000
3. Collections of accounts receivable 2,810,000
4. Write-offs of accounts receivable deemed uncollectible 90,000
5. Recovery of bad debts previously written off as uncollectible 24,000

Instructions:
(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
(b) Enter the January 1, 2010, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances.
(c) Prepare the journal entry to record bad debts expense for 2010, assuming that an aging of accounts receivable indicates that expected bad debts are 5,000.
(d) Compute the accounts receivable turnover ratio for 2010.

I’ve already done (a) and (b) so I just need help on (c) and (d). Please help. Thanks.

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Ending Balance For Merchandise Inventory was Dr 21,250.
No adjustments were made.
Would I Dr 21,250 on the balance sheet?

Ending Balance For Accumulated Amortization, Office Equipment was Cr 700.
The adjustment, Amortization of store office equipment, 0 was made. Credited 600 in adjustments.
What would I Dr/Cr what on the Income Statement or Should I Dr/Cr on the Balance Sheet?

Ending Balance For Rent Revenue was Cr 2,800.
No adjustments were made.
What would I Dr/Cr what on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Sales Discounts was Dr 4,300.
No adjustments were made.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For The Cost of merchandise Sold was Dr 230,150.
No adjustments were made.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Office Salaries Expense was Dr 25,000.
No adjustments were made.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Sales Salaries Expense was Dr 25,000.
No adjustments were made.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Interest Expense Expense was Dr 360.
No adjustments were made.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Insurance Expense was 0.
The following adjustments was made: Dr. 600.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Office Supplies, Expense was 0.
The following adjustment was made: Dr. 1800.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Office Supplies, Expense was 0.
The following adjustment was made: Dr. 1800.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

End Balance For Office Advertising, Expense was 11,300.
No adjustments were made.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

Please help me out on these!
The adjustment, Amortization of store office equipment, 0 was made. Credited 700 in adjustments. (Typo, sorry)
Need Help On This One Too please

End Balance For Amortization Expense, Office Equipment was 0. (Didn’t value a value for it on the Trial Balance)
The following adjustments was made: Dr. 700.
What would I Dr/Cr on the Income Statement or Should I Dr/Cr on the Balance Sheet?

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1. Since merchandise inventory is normally sold within a year, how is it reported on the balance sheet? (Points: 2)
a. As a revenue
b. As the cost of merchandise sold
c. It does not appear on the Balance Sheet
d. As a current asset

2. ABC Company had ,000 in net sales, ,000 in cost of merchandise sold, ,000 in operating expenses, and ,000 in other income. What is ABC Company’s gross profit? (Points: 2)
a.,000
b.,000
c.,000
d. (,000)

3. Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense? (Points: 2)
a.Selling expense
b. Miscellaneous expense
c. Administrative expense
d. Other expense

4. Gross profit is equal to (Points: 2)
a.sales plus (sales discounts and sales returns and allowances) plus cost of merchandise sold.
b.sales plus sales returns and allowances less sales discounts less cost of merchandise sold.
c.sales plus sales discounts less sales returns and allowances less cost of merchandise sold.
d.sales less (sales discounts and sales returns and allowances) less cost of merchandise sold.

5. Under a perpetual inventory system, (Points: 2)
a.accounting records continuously disclose the amount of inventory.
b. increases in inventory resulting from purchases are debited to Purchases.
c. there is no need for a year-end physical count.
d. the purchase returns and allowances account is credited when goods are returned to vendors.

6. Sometimes a(n) __________ is offered to buyers as a means of encouraging them to pay before the end of the credit period. (Points: 2)
a. accounts receivable
b. credit card
c. sales discount
d. cash sale

7. In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is (Points: 2)
a.increase Cost of Merchandise Sold; increase Sales.
b.increase Cost of Merchandise Sold; decrease Merchandise Inventory.
c.increase Merchandise Inventory; decrease Cost of Merchandise Sold.
d. increase Accounts Receivable; decrease Merchandise Inventory.

8. If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are (Points: 2)
a. n/30.
b. FOB shipping point.
c. FOB destination.
d. consigned.

9. If a ,000 sale is made on January 1, with terms of 2/10, n/30, how much would the discount be if payment is made on January 9? (Points: 2)
a. ,000
b. 0
c. ,000
d. {content}

10. Apple Co. sells merchandise on credit to Zea Co. in the amount of ,000. The invoice is dated on September 15 with terms of 1/15, net 45. What is the amount of the discount, and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? (Points: 2)
a. 0, September 30
b. 0, September 25
c. , September 30
d. , September 25

Thank you

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A plant asset with a cost of ,000 and accumulated depreciation of ,000 is sold for ,000.

(a) What is the book value of the asset at the time of sale?

Book Value $________

(b) What is the amount of gain or loss on the disposal?

Gain or loss on the disposal $___________

(c) How would the sale affect net income (increase, decrease, no effect) and by how much?

Net income would (have no effect/ increase by/decrease by) $_________

(d) How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?

Total assets would (have no effect/ increase by/decrease by) $_________

(e) How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?

Cash would (have no effect/ increase by/decrease by) $_________ (FA/IA/OA/NA)

Pick one per set of parenthesis. and fill in the blanks.
I am having some trouble with this question. Please, your help would be appreciated.
Thanks,

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Mark to Market is the accounting rule that makes banks account for the value of assents on their balance sheet at the price of the most resent sale. In this case.. since mortgage backed securities are being forced sold (ie Lehman bankruptcy) into a market that is so thin, the prices are artificially low and banks are having to account for them at these low levels and that is what is putting their balance sheets into trouble….. this is the meat of the problems with the banks today.
yeah I have to agree.. I heard this morning there is a hearing about it today at 10am…

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How to determine bad debt expense and net realizable value?
For the year ended December 31, 2010, the following data are available.

Sales: ,200,000
Sales returns and allowances: ,000
Accounts Receivable–January 1, 2010: 5,000
Allowance for doubtful accounts–January 1, 2010: ,000
Collections during 2010: ,050,000
Accounts written off as uncollected during 2010: ,000

1.) Assume that estimates of bad debts at 2% of net credit sales. How much is the net realized value of accounts receivable reported on balance sheet at December 31, 2010?

2.) Assume that estimates of bad debts based on the aging method, and the aging schedule indicates that ,100 of the year-end accounts receivable will be uncollected.

a.) What amount will be recognized as bad debts expense for the year?
b.) How much is the net realizable value of the receivables to be reported on balance sheet at year-end?

If you can help, please explain so i can check my answer. I have been trying to come up with the best answer and having difficult time for a resolution. Thank you very much for understanding.

Additional Details
Please help! I am really stuck on this one. I have been trying all weekend. Thank you :0)

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i am doind to business plan for my college class and i decided to do it on a truck driving company. i am almost finish but in the balance sheet there is an area where you subtract your taxes from the net sales. how much tax would i have to pay if my net sales are 56,000. i live in texas

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For example, a company had credit sales of 0,000 and estimates that 2% of credit sales would be uncollectable. The Accounts Receivable balance was 0,000 on the balance sheet date and the Allowance for Doubtful Accounts had a credit balance of ,000 before adjusting entries. How much would the debit to Bad Debt Expense be?

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Given the following information:

Total assets
0,000

Debt (12% interest rate)
,000

Equity
,000

Variable costs of production
per unit

Fixed cost of production
,000

Units Sold
12,300

Sales price
.75 per unit

What happens to operating income and net income if output is increased by 10 percent? Verify your answer.
A firm needs 0 to start and has the following expectations:

Sales
0

Expenses
5

Tax rate
33% of earnings

What are earnings if the owners invest the 0?
If the firm borrows of the 0 at an interest rate of 10%, what are the firm’s net earnings?
What is the return on the owners’ investment in each case? Why do the returns differ?
If expenses rise to 4, what will be the returns in each case?
In which case did the returns decline more?
What generalization can you draw from the above?
A firm with sales of ,000 has the following balance sheet:
Assets, Liabilities and Equity as of xx/xx/xx

Assets
Liabilities and Equity

Accounts receivable
,300
Accounts payable
,200

Inventory
1,600
Long-term debt
2,500

Plant
1,700
Equity
900

Total
,600
Total
,600

The firm earns 20 percent on sales and expects those sales to rise to ,500. The increased sales may require additional financing. Accounts receivable and inventory will increase, and trade accounts will also spontaneously increase with the increase in sales. Management expects to distribute 75% of earnings.

Determine the new balance sheet entries for those assets and liabilities that spontaneously change with the level of sales using the percent of sales technique. (Accounts receivable, inventory, and accounts payable vary with sales; the other entries do not). Round off to nearest percentage point, such as 22% or .22.
Will the firm need external financing to achieve sales of ,500?
Construct the pro forma balance sheet for sales of ,500. Any new financing should be obtained by issuing new long‑term debt. Any excess funds should be held in cash.

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Following the same accounting procedures in the same way in each accounting period is an application of the accounting concept ____.
A) Accounting Period Cycle
B) Going Concern
C) Matching Expenses with Revenue
D) Consistent Reporting

Question 2 (5 points)Save

Reporting changes in financial information for a specific period of time in the form of financial statements is an application of the accounting concept ____.
A) Matching Expenses with Revenue
B) Accounting Period Cycle
C) Going Concern
D) Consistent Reporting

Question 3 (5 points)Save

A columnar form used to summarize general ledger information needed to prepare financial statements is ____.
A) a work sheet
B) an income statement
C) a balance sheet
D) a trial balance

Question 4 (5 points)Save

On a trial balance, ____.
A) only general ledger accounts that have balances are listed
B) only accounts with credit balances are listed
C) only accounts with debit balances are listed
D) all general ledger account titles are listed

Question 5 (5 points)Save

Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period are ____.
A) adjustments
B) reported on financial statements
C) found on a trial balance
D) recorded in a work sheet’s Income Statement columns

Question 6 (5 points)Save

Recording revenue from business activities and expenses associated with earning that revenue in the same accounting period is an application of the accounting concept ____.
A) Matching Expenses with Revenue
B) Accounting Period Cycle
C) Consistent Reporting
D) Going Concern

Question 7 (5 points)Save

On a work sheet, the balance of Cash is extended to the ____.
A) Balance Sheet Debit column
B) Income Statement Debit column
C) Income Statement Credit column
D) Balance Sheet Credit column

Question 8 (5 points)Save

On a work sheet, the balance of the owner’s capital account is extended to the ____.
A) Balance Sheet Debit column
B) Balance Sheet Credit column
C) Income Statement Debit column
D) Income Statement Credit column

Question 9 (5 points)Save

On a work sheet, the balance of the Sales account is extended to the ____.
A) Balance Sheet Debit column
B) Income Statement Debit column
C) Income Statement Credit column
D) Balance Sheet Credit column

Question 10 (5 points)Save

On a work sheet, the balance of an expense account is extended to the ____.
A) Income Statement Debit column
B) Balance Sheet Debit column
C) Income Statement Credit column
D) Balance Sheet Credit column

Question 11 (5 points)Save

When total revenue is greater than total expenses, the difference is ____.
A) a debit balance
B) a net income
C) none of the above
D) a net loss

Question 12 (5 points)Save

A net loss is entered in the work sheet’s ____.
A) Balance Sheet Debit and Trial Balance Credit columns
B) Income Statement Debit and Balance Sheet Credit columns
C) Income Statement Credit and Balance Sheet Debit columns
D) Income Statement Debit and Trial Balance Credit columns

Question 13 (5 points)Save

If a pair of work sheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the work sheet, the error is probably ____.
A) an error in addition
B) an amount that has not been extended
C) an amount that has been written in the wrong column
D) a slide

Question 14 (5 points)Save

If the Trial Balance columns are not equal and the difference is 1, the error often is ____.
A) in addition
B) transposed numbers or a "slide"
C) in writing an amount in the wrong column
D) in posting

Question 15 (5 points)Save

If the Trial Balance columns are not equal and the difference can by divided evenly by 9, the error most likely is ____.
A) in writing an amount in the wrong column
B) addition
C) subtraction
D) in transposed numbers or a "slide"

Question 16 (5 points)Save

Jarvis Hutchens owns a small business. At the end of a fiscal period, he does not make an adjustment for supplies. Are Mr. Hutchens’ accounting procedures correct? What effect will Mr. Hutchens’ procedures have on the business’s financial reporting? Explain your answer in 5-7 sentences.

Question 17 (10 points)Save

When posting amounts from a journal to general ledger accounts, a .00 debit to Supplies is mistakenly posted as a credit to Utilities Expense. Will this error be discovered whrn the work sheet is prepared? Explain your answer in 5-7 sentences.

Question 18 (10 points)Save

Accuracy is of critical importance in accounting. Most empl

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A balance sheet visually displays the income received, the cost of sales, and expenses on a monthly or annual basis.

TRUE OR FALSE

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