Up-a-Creek Company had ending inventory of 60,000, purchases of 200,000, beginning accounts payable of 100,000, ending accounts payable of 80,000 and cost of goods sold of 150,000. What was the amount of beginning inventory?
A) 90,000
B) 10,000
C) 30,000
D) 150,000
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Q. 2) A computer abuse technique called a ____ involves inserting unauthorized code in a program, which, when activated, may cause a disaster, such as shutting the system down or destroying files.
a. salami slicing
b. back door
c. logic bomb
d. Trojan horse
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Q. 3) Put an X in the appropriate box to show how each of these items would appear on a company's bank reconciliation. Put an asterisk () next to the items for which the company must record an adjusting entry:
Balance per bank Balance per books
add to deduct from add to deduct from
1. The bank statement shows that a check written by the company for 651 was paid by the bank for 615 in error.
2. The bank recorded a deposit of 100 as 1,000.
3. The bookkeeper correctly wrote a check to a supplier for 604, but recorded the payment as 406 in the company's records.
4. The company's bookkeeper mistakenly recorded a deposit of 420 as 240.
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Q. 4) ____________________ represent items that the bank deducts from the depositor's account.
Fill in the blank(s) with correct word
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Q. 5) Indicate with an X the one financial statement where you would expect to find each line item:
Income Statement Statement of Cash Flows Balance Sheet
1. Cash paid for insurance
2. Prepaid insurance
3. Insurance expense
4. Wages paid to employees
5. Wages payable
6. Wages expense
7. Accounts payable
8. Cost of goods sold
9. Inventory
10. Cash paid to vendors
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Q. 6) A deliberate act or untruth intended to obtain unfair or unlawful gain is a(n):
a. audit
b. embezzlement
c. fraud
d. Theft
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