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ACC 556 Midterm Part 2 (100% Correct Answers)
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ACC 556 - Midterm part 2
•Question 1
Which of these would cause the inventory turnover ratio to increase the most?
•Question 2
Bad Debt Expense is considered
•Question 3
A trial balance proves
•Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Company with credit
terms of 2/10, n/30. Kelly Company returns $1,000 of merchandise that was damaged,
along with a check to settle the account within the discount period. What is the amount of
the check?
•Question 5
A revenue generally
•Question 6
A merchandiser will earn an operating income of exactly $0 when
•Question 7
Smithson Corporation‘s unadjusted trial balance includes the following balances (assume
normal balances):
Accounts Receivable
$3,357,000
Allowances for Doubtful Accounts
$ 63,9 00
Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt
expense will the company record?
•Question 8
All of the following are characteristics of every accounting information system except it is a
system