90.2K

Verified Solution

Link Copied!

PART I: MULTIPLE CHOICE QUESTIONS Each question is worth THREE (3) points. Please circle th You must answer all questions. e ONE correct answer to each question. cost $4,600 for goods that y uses the perpetual inventory method. Gary sold goods will $7,200. If the sale was made on account, the sale A. increase total assets by $2,600. B. increase total equity by $7,200. C. decrease total assets by $4,600. D. increase total assets by $7,200. 2. The credit terms, 2/10, n/30, indicate that a: A. ten percent discount nt can be deducted if the invoice is paid within two days following the date be B. C. two percent disco of sale. two percent dis unt can be deducted for a period up to thirty days following the date of sale. unt can be deducted if the invoice is paid before the tenth day following the date of the sale. D. tho percent discount can be deducted if the invoice is paid after the tenth day following the sale, but before the thirtieth day. 3. Which of the following events would not require an end-of-year adjusting entry? A. Purchasing supplies for cash B. Providing services on account C. Purchasing a 12-month insurance policy on July 1 D. All of the above would require an end-of-year adjustment 4. Tocca Co. collected a S5,000 cash advance from a customer on November 1,2017 for work to be performed over a six-month period beginning on that date. If the year-end adjustment is properly recorded, what will be the effect on Tocca's 2017 financial statements? A. Increase assets and increase liabilities B. Increase assets and increase revenues C. Decrease liabilities and increase revenues D. No effect

Answer & Explanation Solved by verified expert

See Answer