一:Choose the best answer for each statement below
（ A ）1. Postings from the purchases journal to the subsidiary ledger are generally made:
A. Daily.
B. Weekly.
C. Monthly.
D. Yearly.
（ D ）2 If beginning inventory is $50,000, cost of goods purchased is $260,000, and ending inventory is $40,000, cost of goods sold is:
A.$300.000.
B. $280,000.
C. $210,000.
D. $270,000.
（ B ）3. ABC Company sells merchandise on Feb15 on account to XYZ Co. for $11,000, terms 2/10, n/30. On Feb24, payment is received from XYZ Co. What is the amount of cash received?
A. $11,000
B. $10,780
C. $11,220
D. $220
( C ) 4. Please select which components should less from the value of plant assets.
A. Merchandise inventory
B. Income tax payable
C. Accumulated depreciation
D.Retained earnings
( D )5．Which of the following is not a characteristic of plant assets?
A. Tangible
B. Long-lived
C. Unchanged outlook
D. For resale
（ C ）6。 Please select the items which do not belong to the Balance Sheet:
A. Long-term investment.
B. Accounts receivable.
C. Income tax expense.
D. Retained earnings.
（ D ）7. Who does not want to see your Balance Sheet?
A. Creditor.
B. Investor.
C. Manager.
D. Customer.
（ C ）8. The equity method of accounting for long-term investments in stock should be used when the investor owns:
A. Less than 20% of the common stock of the investee.
B. More than 20% of the common stock of the investee.
C. Between 20% and 50% of the common stock of the investee.
D. More than 50% of the common stock of another entity.
（ D ）9. Jane Smith earns $12 per hour for a 40-hour week and $22 per hour for any overtime work. If Jane works 48 works in a week, gross earnings are:
A. $480.
B. $576.
C. $650.
D. $656.
（ B ）10. Decide which of the following statements is true.
A. Since intangible assets lack physical substance, they need be disclosed only in the
notes to the financial statements.
B. Totals of major classes of assets can be shown in the balance sheet, with asset
details disclosed in the notes to the financial statements.
C. Goodwill should be reported as a contra-account in the owner’s equity section.
D. Intangible assets are typically combined with plant assets and natural resources
and shown in the property, plant, and equipment section.
( C ) 11. Please select which components should less from the value of plant assets.
A. Merchandise inventory
B. Income tax payable
C. Accumulated depreciation
D.Retained earnings
( D )12．Which of the following is not a characteristic of plant assets?
A.Tangible
B.Long-lived
C.Unchanged outlook
D. For resale
( A )13. In accounting, which of the following factors is not an estimate to determine the depreciation of a plant asset?
A.Cost
eful life
C.Salvage value
D.Total units of output
( C )14. Please select an item for not belong to the Balance Sheet.
A. Long-term investment
B. Accounts receivable
C. Income tax expense
D. Retained earnings
( A )15. In general, which is the basis of preparing a Balance Sheet?
A. Assets=Liabilities + Owners’ equity
B. Assets - Liabilities = Owners’ equity
C. Profits = Revenues - Expenses
D. Revenues =Profits + Expenses
( A ) 16. In accounting, which of the following factors is not an estimate to determine the depreciation of a plant asset?
E.Cost B. Useful life
C. Salvage value
D. Total units of output
( C )17. Please select an item for not belong to the Balance Sheet.
A. Long-term investment
B. Accounts receivable
C. Income tax expense
D. Retained earnings
( A )18. In general, which is the basis of preparing a Balance Sheet?
A. Assets=Liabilities + Owners’ equity
B. Assets - Liabilities = Owners’ equity
C. Profits = Revenues - Expenses
D. Revenues =Profits + Expenses
( C )19. The major elements of the income statement are:
A. Revenue, cost of goods sold, selling expenses, and general expense
B. Operating section, cooperating section, discontinued operations, extraordinary items, and cumulative effect
