Treasury stock ________.
A) is a contra-equity account
B) is the amount of stock issued by the company
C) results in an increase in total shareholders' equity
D) is a contra-asset account
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Q. 2) Warranty expense is recognized when products are sold. This is required by the ________.
A) revenue recognition principle
B) matching principle
C) full disclosure principle
D) going concern principle
(
Q. 3) _____________________________
_ are particularly important because they operate across all business processes and affect a company's capability to meet a multitude of control goals.
Fill in the blank(s) with correct word
(
Q. 4) Investors purchase preferred stock because preferred ________.
A) stock offers a possibility of a specified annual dividend
B) dividends are increased each year
C) shareholders have voting rights
D) stock can always be converted to common stock
(
Q. 5) If the amount of sales returns and allowances is large in proportion to gross sales, a weakness in the merchandising operations is indicated and the trouble should be determined and corrected.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Vango, Inc. sells part number 86Z to auto parts stores around the world. Information about part number 86Z is contained in the table below. Vango uses a weighted average cost periodic inventory system.
Number of Units Unit Cost Total Cost
Beginning inventory 2,000 8.00 16,000
Purchase 3,000 8.20 24,600
Purchase 5,000 8.60 43,000
Totals 10,000 83,600
Determine the cost of goods sold and ending inventory value of part 86Z, if 4,000 units remain unsold in inventory at the end of the accounting period.
A) Cost of goods sold is 49,200 and ending inventory is 34,400.
B) Cost of goods sold is 34,400 and ending inventory is 49,200.
C) Cost of goods sold is 50,160 and ending inventory is 33,440.
D) Cost of goods sold is 51,200 and ending inventory is 32,400.
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