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 14 ) When the direct method is used to record inventory at market 15 ) Designated market value