650 Multiple Choice (50 Points) 1. Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2013: Restricted cash for paying 15 year bonds 55,200 Compensating balance in a saving account 5.000 Currency and Coins Balance in Checking account 2,600 Customer Checks waiting to be deposited 1.200 Trading securities 10.200 Commercial paper, mature in four months 5.000 Treasury bills, mature in three months 3,000 What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents? A. $9,450, B. $12.450 C. $7,450, D. $19,650 2. Raymond Company received merchandise costing $4,000 on December 28, 2006, on consignment from the Abom Company. The carrier was Combo Shipping Inc. Goods on consignment should be included in the 2006 ending inventory of A Raymond Company. B. Abor Company. C. Combo Shipping Inc. D. Both Raymond and Abom. 3. Important elements of an internal control system for cash disbursements include each of the following EXCEPT: A. Only authorized personnel should sign checks. B. All expenditures should be authorized before a check is prepared. C. All disbursements, other than very small disbursements, should be made by check. D. The same person that prepares the check should also record it in the proper journal. 4. Tom's Textiles shipped the wrong material to a customer, who refused to accept the order. Upon receipt of the material, Tom's would credit accounts receivable and debit: A Sales B Sales discounts C. Sales returns. D Sales allowances. 5. The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be: A. FIFO. B. LIFO C. Weighted average D. None of the above 6. Tiger Inc. adopted dollar value LIFO on January 1, 2006, when the inventory value was $360,000 and the cost index was 1.00. On December 31, 2006, the inventory was valued at year-end cost of $383,250 and the cost index was 1.05. Tiger would report a dollar-value LIFO inventory of on 12/31/2006 A $360,000 B S365.000 C. S365,250. D. $383,250. DE