the following is considered cash? 2) Bank overdrafts, if material, should
be 3) Which of the following is NOT considered cash for financial
reporting purposes? 4) If a company employs the gross method of
recording accounts receivable from customers, then sales discounts
taken should be reported as 5) Which of the following methods of
determining annual bad debt expense best achieves the matching
concept? 6) The advantage of relating a company's bad debt expense to
its outstanding accounts receivable is that this approach 7) The failure to
record a purchase of mer¬chandise on account even though the goods
are properly included in the physical inven¬tory results in 8) Belle Co.
received merchandise on consignment. As of March 31, Belle had
recorded the transaction as a purchase and included the goods in
inventory. The effect of this on its financial statements for March 31 9)
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 10) The use of a
Purchase Discounts account implies that the recorded cost of a
purchased inventory item is its 11) Which method of inventory pricing
best approximates specific identification of the actual flow of costs and
units in most manufacturing situations? 12) 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? 13)
An item of inventory purchased this period for $15.00 has been
incorrectly written down to its current replacement cost of $10.00. It
sells during the following period for $30.00, its normal selling price,
with disposal costs of $3.00 and normal profit of $12.00. Which of the
following statements is NOT true? 14) Designated market value 15) In
no case can "market" in the lower-of-cost-or-market rule be more than
16) A major advantage of the retail inventory method is that it 17) The
gross profit method of inventory valuation is invalid when 18) The retail
inventory method is based on the assumption that the 19) Which of the
following is NOT a major characteristic of a plant asset? 20) Cotton
Hotel Corporation recently purchased Holiday Hotel and the land on
which it is located with the plan to tear down the Holiday Hotel and
build a new luxury hotel on the site. The cost of the Holiday Hotel