Solved by verified expert :Answer
Multiple Choice Questions (Enter your answers on the enclosed
answer sheet)
1) The term F.O.B. means:
2) A purchase order is used to:
3) The account used to record the purchase of goods is:
4) On March 30, Bailey’s Dog Bakery purchased $1,000 of
merchandise on account from the Williams Company. The goods were shipped F.O.B.
shipping point. The freight charge of $80 was paid by Williams Company and
added to the invoice. The amount to record in the Accounts Payable account is:
5) The entry to record a payment on a $900 account within the 1%
discount period would include a:
6) A purchase discount was recorded as a credit to the Purchases
account – the remainder was correctly recorded. This error will cause:
7) The freight paid on equipment purchased F.O.B. shipping point
was debited to the Freight-In account. This error will cause:
8) A purchase discount that was earned and taken was never
recorded. This error will cause:
9) Returned merchandise paid for within the discount period for a
cash refund. This will be recorded with:
10) Purchase returns and allowances:
11) Returned merchandise for credit. The perpetual inventory
system is in use. This will:
12) Under the perpetual system, the purchase of merchandise is
recorded by a(n):
Unit 4 Examination
Introduction to Accounting
13) The inventory method where the cost flows tend to follow the
physical flows are:
14) The inventory method that matches old costs with current
selling prices is:
15) The advantage of the LIFO method is:
16) The principle of consistency states that:
17) If the ending inventory is overstated,
18) The ending inventory for this year is understated. This error
would cause:
19) A business is using LIFO when FIFO should have been used
during an inflationary period. This error would cause:
20) Which of the following is an example of a land improvement?
21) Which depreciation method deducts residual value when
computing depreciation expense?
22) Capital expenditures would include:
23) Greetings Online disposed of a van that cost $22,000 with
accumulated depreciation of $15,000. The journal entry would be to:
24) All of the following are intangible assets except:
25) When calculating declining balance depreciation, the
straight-line rate was used instead of double the straight-line rate. In the first
year of ownership, this error would cause:
