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SET 3
1) Which of the following is NOT considered cash for financial
reporting purposes?
2) What is the preferable presentation of accounts receivable from
officers, employees, or affiliated companies on a balance sheet?
3) Which of the following items should NOT be included in the Cash
caption on the balance sheet?
4) The advantage of relating a company's bad debt expense to its
outstanding accounts receivable is that this approach
5) Which of the following is a generally accepted method of
determining the amount of the adjustment to bad debt expense?
6) Assuming that the ideal measure of short-term receivables in the
balance sheet is the discounted value of the cash to be received in the
future, failure to follow this practice usually does NOT make the
balance sheet misleading because
7) Eller Co. received merchandise on consignment. As of January 31,
Eller included the goods in inventory, but did NOT record the
transaction. The effect of this on its financial statements for January
31 would be
8) If the beginning inventory for 2006 is overstated, the effects of this
error on cost of goods sold for 2006, net income for 2006, and assets
at December 31, 2007, respectively, are
9) The accountant for the Orion Sales Company is preparing the
income statement for 2007 and the balance sheet at December 31,
2007. Orion uses the periodic inventory system. The January 1, 2007
merchandise inventory balance will appear
10) The use of a Discounts Lost account implies that the recorded cost
of a purchased inventory item is its
11) When using the periodic inventory system, which of the following
generally would NOT be separately accounted for in the computation
of cost of goods sold?
12) The use of a Purchase Discounts account implies that the recorded
cost of a purchased inventory item is its
13) In no case can "market" in the lower-of-cost-or-market rule be
more than