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Question 31 (? During 2021, NorthHill Services has revenues of $58.000, expenses other than income tax expense of $38,000, and dividends of $5,000. If the income tax rate is 30%, what is the company's net earnings after tax? a) $9.000 b) $10.500 c) $14,000 di $20,000 e) $6.000

Question 31 (? During 2021, NorthHill Services has revenues of $58.000, expenses other than income tax expense of $38,000, and dividends of $5,000. If the income tax rate is 30%, what is the company's net earnings after tax? a) $9.000 b) $10.500 c) $14,000 di $20,000 e) $6.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 31 (? During 2021, NorthHill Services has revenues of $58,000, expenses other than income tax expense of $38.000, and dividends of $5,000. If the income tax rate is 30%, what is the company's net earnings after tax? a) $9.000 b) $10.500 c) $14,000 d) $20,000 Oel $6,000 Question 32 Green Light Inc. had $36,500 in accounts receivable and $2,000 (credit) in allowance for doubtful accounts at the beginning of 2021. Total credit sales during 2021 was $75,000 and cash collected on accounts receivable was $55,000. Uncollectible amounts are expected to be 5% of outstanding accounts receivable at the end of 2021. What is the amount of bad debt expense to be recorded at the end of the period? a) $4,825 b) $825 c) $2,825 d) $2,000 e) $1,175
Transcribed Image Text:Question 31 (? During 2021, NorthHill Services has revenues of $58,000, expenses other than income tax expense of $38.000, and dividends of $5,000. If the income tax rate is 30%, what is the company's net earnings after tax? a) $9.000 b) $10.500 c) $14,000 d) $20,000 Oel $6,000 Question 32 Green Light Inc. had $36,500 in accounts receivable and $2,000 (credit) in allowance for doubtful accounts at the beginning of 2021. Total credit sales during 2021 was $75,000 and cash collected on accounts receivable was $55,000. Uncollectible amounts are expected to be 5% of outstanding accounts receivable at the end of 2021. What is the amount of bad debt expense to be recorded at the end of the period? a) $4,825 b) $825 c) $2,825 d) $2,000 e) $1,175
Question 33 (1 ». An accountant takes over from another accountant to prepare the financials of ABC Corp. The new accountant agrees on the amounts reported for all current assets as prepared by the previous accountant without having a conversation with the prior accountant. Which characteristic does this situation embody? a) Verifiability ) b) Timeliness C) Relevance d) Comparability e) Faithful representation Question 34 s You are interested in LCD Inc. and plan to invest $100,000 in it. After reviewing the financial statements of the company you found that it changed the costing method in valuing its inventories from FIFO to weighted average last year and did not give any justification for the change. Which of the following charateristics is missing from the company's financial reporting? ) a) Understandability b) Faithful representation ) Comparability d) Relevance e) Timeliness
Transcribed Image Text:Question 33 (1 ». An accountant takes over from another accountant to prepare the financials of ABC Corp. The new accountant agrees on the amounts reported for all current assets as prepared by the previous accountant without having a conversation with the prior accountant. Which characteristic does this situation embody? a) Verifiability ) b) Timeliness C) Relevance d) Comparability e) Faithful representation Question 34 s You are interested in LCD Inc. and plan to invest $100,000 in it. After reviewing the financial statements of the company you found that it changed the costing method in valuing its inventories from FIFO to weighted average last year and did not give any justification for the change. Which of the following charateristics is missing from the company's financial reporting? ) a) Understandability b) Faithful representation ) Comparability d) Relevance e) Timeliness
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