Multiple Choice Answers

On June 1st, Green Pea, Inc. purchased $1,200 worth of supplies on account. On December 31st, the fiscal year end for Green Pea, it is determined that $700 dollars of supplies still remain. What is the balance in the supplies account after adjustment?
a. $600
b. $700
c. $500
d. $1,200

The following assets are included in Ace Auto Parts, Inc.’s December 31, 2004 balance sheet.

Accounts Receivable (net of Allowance for Uncollectable Accounts)             $50,000
Accumulated Depreciation, Building   20,000
Building           100,000
Cash    60,000
Land    130,000
Land Held for Future Use        40,000
Merchandise Inventory            70,000
Trademark       110,000
The total dollar amount of assets classified as property, plant, and equipment on Ace Auto Parts’ December 31, 2004 classified balance sheet is __________.
a. $210,000
b. $50,000
c. $360,000
d. $430,000

The most important output of the accounting cycle is the __________.
a. Accounting equation
b. Financial statements
c. Balance sheet
d. Income statement

Cost of merchandise sold is the same as operating expenses.
True
False

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are:

a. consigned
b. n/30
c. FOB shipping point
d. FOB destination