41. Cash includes:
A. currency.
B. money orders.
C. bank checks.
D. checking accounts and time deposits.
E. all of the above.
42. Cash equivalents includes short-term,
A. highly liquid investments with maturities of three months or less.
B. highly liquid investments with maturities of six months or less.
C. highly liquid investments with maturities of one year months or less.
D. investments with maturities of three months or less.
E. investments with maturities of six months or less.
43. Which of the following is/are true regarding inventory?
A. Inventory refers to goods and other items that a firm owns and holds for sale or for further processing as part of its operations.
B. Inventory is called “stock” in some countries.
C. When the firm sells inventory, the carrying amount of that inventory becomes an expense.
D. Inventories are a major asset for merchandising and manufacturing firms.
E. all of the above
44. Which of the following is/are not true regarding inventory?
A. Inventory refers to goods and other items that a firm owns and holds for sale or for further processing as part of its operations.
B. Inventory is called “stock” in some countries.
C. When the firm sells inventory, the carrying amount of that inventory becomes an expense.
D. Inventories are a major asset for merchandising and manufacturing firms.
E. The following equation measures all quantities in physical units:
Beginning Inventory - Additions + Withdrawals = Ending Inventory
45. The inventory equation describes changes in inventory. The following equation measures all quantities in physical units:
A. Beginning Inventory + Additions + Withdrawals = Ending Inventory
B. Beginning Inventory - Additions - Withdrawals = Ending Inventory
C. Beginning Inventory + Additions x Withdrawals = Ending Inventory
D. Beginning Inventory x Additions - Withdrawals = Ending Inventory
E. Beginning Inventory + Additions - Withdrawals = Ending Inventory
46. Sparkle Industries began a period with 2,000 pounds of sugar and purchased 4,500 pounds during the period. Sparkle used 5,300 pounds during the period. How many pounds of sugar remain at the end of the period?
A. 800 pounds of sugar
B. 1,000 pounds of sugar
C. 1,200 pounds of sugar
D. 1,400 pounds of sugar
E. 1,600 pounds of sugar
47. Sparkle Industries began a period with 2,000 pounds of sugar and purchased 4,500 pounds during the period. Sparkle used 5,300 pounds during the period. How many pounds of sugar were available for sale or use during the period?
A. 5,000 pounds of sugar
B. 5,500 pounds of sugar
C. 6,500 pounds of sugar
D. 7,000 pounds of sugar
E. 7,500 pounds of sugar
48. The principle for cost inclusion is that the balance sheet amount for inventory should include all costs incurred to
A. acquire goods, only.
B. prepare the goods for sale, only.
C. acquire goods and prepare them for sale.
D. acquire goods, prepare them for sale, and transport them to the buyer.
E. acquire goods, prepare them for sale, and sales commissions.
49. _____ firms acquire inventory items in a physical condition ready for sale.
A. Merchandising
B. Manufacturing
C. Technology
D. Production
E. Health Care
50. _____ firms transform raw materials, purchased parts, and components into finished products in their factories.
A. Merchandising
B. Manufacturing
C. Consulting
D. Staffing
E. Health Care