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) The Last Bank lends note at the end of the year. The journal ent on a six month note. The bank accru Interest on the ry would include A) a debit to Interest Receivable and a credit to B) a debit to Interest Revenue C) a debit to Cash and a credit to Interest Payable D) a debit to Cash and a credit to Interest Revenue Interest ev and a credit to Interest Receivable 10) lf 1bctors Inc.sels iterns to a customer who uses a credit for son "ease" ...-ewd teoof 2%, what is the "mount of the credit to Sales Revenue? 11) The two main types of inventory accounting systems ares 12) The cost of inventory includes the A) s800 m_ _ ) 5768 C 5816 A) perpetual and periodic. C) perpetual and continuous B) cost of goods sold and gross profit D) none of the above A) purchase price, delivery costs and sales commissions B) purchases price, freight-in and sales taxes paid on the purchase. C) purchase price, advertising costs and insurance while in transit. D) purchase price, advertising costs and sales commissions 13) The accounting principle that states that a business should use the same and procedures from period to period is the A) consistency principle. C) historical cost principle. B) disclosure principle D) conservatism principle 14) life of the van was originally estimated to be 7 years. The overhaul is expected to extend the useful life of the van to 9 years. The overhaul is regarded as aln) 14) Pat's Pets recently paid to have the engine in its delivery van overhauled. The estimated useful B) equity expenditure. A) capital expenditure. C) revenue expenditure. ng expenditure. 15) A) a debit to Depletion Expense and a credit to Accumulated Depletion. B) a debit to Accumulated Depletion and a credit to Depletion Expense. C) a debit to Depletion Expense and credit to Accumulated Depreciation. D) none of the above. 15) The journal entry to record depletion would include 16 purchase Second Company had $18,500,000 in assets and liabilities of $11,000,000. The 2011 balance sheet for First Company should show goodwill of 16) In 2011, First Company purchased Second Company for $16,000,000 cash. At the time of D) $0. C)$10,500,000. A) $8,500,000 B) S3,500,000. 17) A gross profit margin of 30% means that A) for each dollar of sales, the company has a cost of goods sold of seventy cents B) for each dollar of sal C) for each dollar of sales, the company has a cost of goods sold of thirty cents. D) both A and B are true es, the company has a gross profit of thirty cents

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