Accounting Questions 10 Marks Question: 1 Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be $ a. $370 b. $930 c. $680 d. $445 Question: 2 Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000. What were Adam's total liabilities at the end of the year? a. $101,000 b. $145,000 c. $195,000 d. $246,000
Accounting Questions 10 Marks Question: 1 Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be $ a. $370 b. $930 c. $680 d. $445 Question: 2 Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000. What were Adam's total liabilities at the end of the year? a. $101,000 b. $145,000 c. $195,000 d. $246,000
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 9PROB
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Transcribed Image Text:Accounting Questions 10 Marks
Question: 1
Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering
estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During
Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired.
The liability for product warranties at month-end should be $
a. $370
b. $930
c. $680
d. $445
Question: 2
Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were
$143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets
increased by $21,000.
What were Adam's total liabilities at the end of the year?
a. $101,000
b. $145,000
c. $195,000
d. $246,000
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