41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for $20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using the straight-line method at 25% per annum on a month by month basis. What was the profit or loss on the disposal of the machine? a. loss $1000 b. loss $1500 c. profit $1000 d. profit $1500
41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for $20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using the straight-line method at 25% per annum on a month by month basis. What was the profit or loss on the disposal of the machine? a. loss $1000 b. loss $1500 c. profit $1000 d. profit $1500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I Only Want The Correct Option in these MCQs can u please help me
![41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for
$20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using the
straight-line method at 25% per annum on a month by month basis.
What was the profit or loss on the disposal of the machine?
a. loss $1000
b. loss $1500
c. profit $1000
d. profit $1500
42. under a perpetual inventory system, when goods are purchased for resale by a company:
a. purchases on account are debited to Inventory.
b. purchases on account are debited to Purchases.
c. purchase returns are debited to Purchase Returns and Allowances.
d. freight costs are debited to Freight-out.
43. The sales accounts that normally have a debit balance are:
a. Sales Discounts.
b. Sales Returns and Allowances.
c. Both (a) and (b).
d. Neither (a) nor (b).
44. Bell Company has the following:
Units
Unit Cost
Inventory, Jan. 1
8,000
$1
Purchase, June 19
13,000
12
Purchase, Nov. 8
5,000
13
If Tinker Bell has 9,000 units on hand at December 31, the cost of the ending inventory under
FIFO is:
a. $99,000
b. $108,000
c. $113,000.
d. $117,000
45. Using the data in Question 44 above, the cost of the ending inventory under LIFO is:
a. $113,000
b. $108,000
c. $99,000.
d. $100,000
11](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1c20314-7f21-4945-9c72-90a4d480e754%2F3e58bf8e-339d-4e3d-bcaa-96ab0637c8ce%2Ft98dhe6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for
$20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using the
straight-line method at 25% per annum on a month by month basis.
What was the profit or loss on the disposal of the machine?
a. loss $1000
b. loss $1500
c. profit $1000
d. profit $1500
42. under a perpetual inventory system, when goods are purchased for resale by a company:
a. purchases on account are debited to Inventory.
b. purchases on account are debited to Purchases.
c. purchase returns are debited to Purchase Returns and Allowances.
d. freight costs are debited to Freight-out.
43. The sales accounts that normally have a debit balance are:
a. Sales Discounts.
b. Sales Returns and Allowances.
c. Both (a) and (b).
d. Neither (a) nor (b).
44. Bell Company has the following:
Units
Unit Cost
Inventory, Jan. 1
8,000
$1
Purchase, June 19
13,000
12
Purchase, Nov. 8
5,000
13
If Tinker Bell has 9,000 units on hand at December 31, the cost of the ending inventory under
FIFO is:
a. $99,000
b. $108,000
c. $113,000.
d. $117,000
45. Using the data in Question 44 above, the cost of the ending inventory under LIFO is:
a. $113,000
b. $108,000
c. $99,000.
d. $100,000
11
![37. Which of the following statements about the accrual basis of accounting is false?
a. Events that change a company's financial statements are recorded in the periods in which the
events occur.
b. Revenue is recognized in the period in which it is earned.
c. This basis is in accord with generally accepted accounting principles.
d. Revenue is recorded only when cash is received, and expense is recorded only when cash is
paid.
38. Adjustments for unearned revenues:
a. decrease liabilities and increase revenues.
b. have an assets and revenues account relationship.
c. increase assets and increase revenues.
d. decrease revenues and decrease assets.
39. The principle or assumption dictating that efforts (expenses) be matched with
accomplishments (revenues) is the:
a. expense recognition principle.
b. cost assumption.
c. time period principle.
d. revenue recognition principle.
40. What is correct about a bank reconciliation statement?
prepared by
the bank
prepared by
the trader
part of double entry
book-keeping
A
no
yes
no
no
yes
yes
yes
no
no
D
yes
no
yes
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1c20314-7f21-4945-9c72-90a4d480e754%2F3e58bf8e-339d-4e3d-bcaa-96ab0637c8ce%2Fngj64jk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:37. Which of the following statements about the accrual basis of accounting is false?
a. Events that change a company's financial statements are recorded in the periods in which the
events occur.
b. Revenue is recognized in the period in which it is earned.
c. This basis is in accord with generally accepted accounting principles.
d. Revenue is recorded only when cash is received, and expense is recorded only when cash is
paid.
38. Adjustments for unearned revenues:
a. decrease liabilities and increase revenues.
b. have an assets and revenues account relationship.
c. increase assets and increase revenues.
d. decrease revenues and decrease assets.
39. The principle or assumption dictating that efforts (expenses) be matched with
accomplishments (revenues) is the:
a. expense recognition principle.
b. cost assumption.
c. time period principle.
d. revenue recognition principle.
40. What is correct about a bank reconciliation statement?
prepared by
the bank
prepared by
the trader
part of double entry
book-keeping
A
no
yes
no
no
yes
yes
yes
no
no
D
yes
no
yes
10
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