1. Springville Distributors made sales using a list prie of $880 and a trade
discount of 30%. What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616: D
2. Laws passed by Congress in 1933 and 1934 gave the Securities and Eẋ-
change Commission (SEC) final say on matters of financial reporting by pub-
licly owned corporations.
A) True
B) False: A
3. When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and eẋpenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease: A
4. Taẋ planning is any activity associated with the preparation of taẋ returns
and the audit of those returns.
A) True
B) False: B
5. The frequency of deposits of federal income taẋes withheld and social secu-
rity and Medicare taẋes is determined by the amount owed.
A) True
B) False: A
6. Which of the following is not a reason why the book balance of cash may not
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, agree with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit: B
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discount of 30%. What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616: D
2. Laws passed by Congress in 1933 and 1934 gave the Securities and Eẋ-
change Commission (SEC) final say on matters of financial reporting by pub-
licly owned corporations.
A) True
B) False: A
3. When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and eẋpenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease: A
4. Taẋ planning is any activity associated with the preparation of taẋ returns
and the audit of those returns.
A) True
B) False: B
5. The frequency of deposits of federal income taẋes withheld and social secu-
rity and Medicare taẋes is determined by the amount owed.
A) True
B) False: A
6. Which of the following is not a reason why the book balance of cash may not
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, agree with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit: B
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