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Question 21 A capital expenditure results in a debit to an expense account a capital account a liability account an asset account Question 22 The term "receivables" includes all money claims against other entities O merchandise to be collected from individuals or companies cash to be paid to creditors cash to be paid to debtors Question 23 Gross profit is equal to: sales plus sales returns and allowances plus cost of merchandise sold. sales less sales returns and allowances plus cost of merchandise sold. sales plus sales returns and allowances less cost of merchandise sold. sales less sales returns and allowances less cost of merchandise sold. Moving to another question will save this response. Question 24 of 40 uestion 24 25 points A building with an appraisal value of $154,000 is made available at an offer price of 5172,000. The purchaser acquires the property for $40,000 in cash a 5-day rote payable for $45.000, and a mortgage amounting to $75,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is $154,000 O $172,000 $160,000. $120,000 Question 25 2.5 points The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of merchandie sold for the year according to the LIFO method Given the following? Beginning inventory - 5 units at 561 First purchase-15 units at $63 Second purchase - 10 units at $74 Third purchase - 10 units at $77 O $1.380 $1,375 $1.510 $1,250 Question 26 Under the inventory method, the company's accounting records maintain continuously updated inventory information. O Retail Periodic Physical Perpetual Question 27 Which of the following accounts has a normal credit balance? O Accounts Receivable Sales Merchandise Inventory Delivery Expense Question 28 The journal entry a company uses to record the collection of an interest-bearing note receivable debit Notes Receivable, credit Cash debit Notes Receivable and Interest Income, credit Cash debit Cash; credit Notes Receivable debit Cash, credit Notes Receivable and Interest Income Question 29 Which statement is not true? Current assets are normally reported in order of their liquidity. Disclosures related to receivables are reported on the financial statement notes. Cash and cash equivalents are the first items reported under current assets. All receivables that are expected to be realized in cash beyond 360 days are reported in the non-current assets section & Moving to another question will save this response. Question 30 Which of the following best describes accounting? It records economic data but does not communicate the data to users according to any specific rules. It is an information system that provides reports to users regarding economic activities and condition of a business. It is of no use by individuals outside of the business. It is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements. Moving to another question will save this response. hp