D103 - Intermediate Accounting I- OA2 (Units 5-
7) QUESTIONS AND ANSWERS 2025 Western
Governors University
100 QUESTIONS AND ANSWERS
1 of 100
Term
Which of the following is the formula for the inventory turnover rate?
net sales/cost of goods sold.
cost of goods sold/average inventory.
cost of goods sold/ending Inventory.
average inventory/cost of goods sold.
Give this one a try later!
,d. reported as a current liability.
b. cost of goods sold/average inventory.
b. money market funds.
d. Debit Accounts Receivable, credit Allowance for Doubtful Accounts.
Accounting Rule: Two entries are needed. First, an entry is needed to reverse the write-off
of the account receivable and restore it, debit accounts receivable,
credit allowance for doubtful accounts. Second, an entry is needed to record
collection of the account, debit cash, credit accounts receivable.
Don't know?
, 2 of 100
Definition
$5,300 = $2,000 + $3,300
Accounting Rule: The cost of goods sold is calculated as
beginning inventory plus purchases minus ending inventory.
Make sure you know the following formula
Beginning Inventory
(+) Net Purchases1
(=) Goods Available for Sale
(-) Ending Inventory
(=) Cost of Goods Sold
1 Net Purchases = Purchases + Freight In- Purchase Discounts –
Purchase Returns and Allowances
Give this one a try later!
A company has the following items at year-end:
cash in bank: $35,000
petty cash: $300
short-term paper with maturity of 120 days: $5,500
postdated checks: $1,400
How much should be reported as cash in the balance sheet?
A company has the following items at year-end:
cash in bank: $30,000
petty cash: $500
short-term paper with maturity of two months: $7,000
postdated checks: $2,000
, What amount should be reported as cash and cash equivalents in the balance
sheet?
A company has the following balances in its accounts:
• beginning inventory: $2,000
• purchases: $3,300
• ending inventory: $1,400
If the periodic system is used, what is the amount of goods available for
sale for the year?
A company has the following balances in its accounts:
• beginning inventory: $2,000
• purchases: $3,300
• ending inventory: $1,400
If the periodic system is used, what is the amount of cost of goods sold for the
year?
Don't know?
3 of 100
Term
A company has the following for the current year:
• sales of $100,000
• sales discounts of $15,000
• sales returns and allowances of $5,000
•accounts receivable of $50,000
•allowance for doubtful accounts of $6,000
7) QUESTIONS AND ANSWERS 2025 Western
Governors University
100 QUESTIONS AND ANSWERS
1 of 100
Term
Which of the following is the formula for the inventory turnover rate?
net sales/cost of goods sold.
cost of goods sold/average inventory.
cost of goods sold/ending Inventory.
average inventory/cost of goods sold.
Give this one a try later!
,d. reported as a current liability.
b. cost of goods sold/average inventory.
b. money market funds.
d. Debit Accounts Receivable, credit Allowance for Doubtful Accounts.
Accounting Rule: Two entries are needed. First, an entry is needed to reverse the write-off
of the account receivable and restore it, debit accounts receivable,
credit allowance for doubtful accounts. Second, an entry is needed to record
collection of the account, debit cash, credit accounts receivable.
Don't know?
, 2 of 100
Definition
$5,300 = $2,000 + $3,300
Accounting Rule: The cost of goods sold is calculated as
beginning inventory plus purchases minus ending inventory.
Make sure you know the following formula
Beginning Inventory
(+) Net Purchases1
(=) Goods Available for Sale
(-) Ending Inventory
(=) Cost of Goods Sold
1 Net Purchases = Purchases + Freight In- Purchase Discounts –
Purchase Returns and Allowances
Give this one a try later!
A company has the following items at year-end:
cash in bank: $35,000
petty cash: $300
short-term paper with maturity of 120 days: $5,500
postdated checks: $1,400
How much should be reported as cash in the balance sheet?
A company has the following items at year-end:
cash in bank: $30,000
petty cash: $500
short-term paper with maturity of two months: $7,000
postdated checks: $2,000
, What amount should be reported as cash and cash equivalents in the balance
sheet?
A company has the following balances in its accounts:
• beginning inventory: $2,000
• purchases: $3,300
• ending inventory: $1,400
If the periodic system is used, what is the amount of goods available for
sale for the year?
A company has the following balances in its accounts:
• beginning inventory: $2,000
• purchases: $3,300
• ending inventory: $1,400
If the periodic system is used, what is the amount of cost of goods sold for the
year?
Don't know?
3 of 100
Term
A company has the following for the current year:
• sales of $100,000
• sales discounts of $15,000
• sales returns and allowances of $5,000
•accounts receivable of $50,000
•allowance for doubtful accounts of $6,000
