Multiply.

$$(2 + 3y)(2 - 3y)$$

Separation of duties is important for internal control of a. cash receipts. b. cash payments. c. Neither of the above d. Both a and b

Brickman Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Brickman wrote off uncollectible receivables of$2,100. Brickman recorded Bad Debts Expense of $2,700. What is Brickman's year-end balance in Allowance for Bad Debts?

• a.$1,600
• b. $4,800
• c.$3,700
• d. $600

JC Manufacturing purchased inventory for $5,300 and also paid a$260 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 2% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

• a. $2,997
• b.$2,337
• c. $3,117
• d.$2,857

Which principle or concept states that businesses should use the same accounting methods and procedures from period to period? a. Disclosure b. Conservatism c. Consistency d. Materiality

At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest of 10% has accrued for 10 months on the note. What will Crain's financial statements report for this situation at December 31?

• a. The balance sheet will report the note receivable of$8,400.
• b. The balance sheet will report the note receivable of $8,400 and interest receivable of$700.
• c. Nothing because the business has not received the cash yet.
• d. The income statement will report a note receivable of $8,400.

At December 31, year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain's financial statements report for this situation on December 31?

A. The balance sheet will report the note receivable of$8,400.

B. The balance sheet will report the note receivable of $8,400 and interest receivable of$700.

C. Nothing because the business has not received the cash yet.

D. The income statement will report a note receivable of $8,400.

With good internal controls, the person who handles cash can also

• a. account for cash payments.
• b. account for cash receipts from customers.
• c. issue credits to customers for sales returns.
• d. one of the above

Payment by check is an important internal control over cash payments because

• a. the check must be signed by an authorized official
• b. before signing the check, the official reviews the invoice supporting the payment.
• c. Both a and b
• d. None of the above

Assume Nile.com began April with 14 units of inventory that cost a total of $266. During April, Nile purchased and sold goods as follows:

$$\begin{array}{lrlr} \text{Apr}&8&\text{Purchase}&\text{42 units @ \$20}\\ \quad14&\text{Sale}&\text{35 units @ \$40}\\ \quad22&\text{Purchase}&\text{28 units @ \$22}\\ \quad27&\text{Sale}&\text{42 units @ \$40}\\ \end{array}$$

Under the FIFO inventory method, how much is Nile’s cost of goods sold for the sale on April 14? a. $1,106 b.$686 c. $1,400 d.$700

When recording credit card or debit card sales using the net method,

• a. cash received equals sales.
• b. cash received equals sales minus the fee assessed by the card processing company.
• c. cash received equals sales plus the fee assessed by the card processing company.
• d. cash isn't received by the seller until the customer pays his or her credit card statement.

Which subtotals appear on a multi-step income statement but do not appear on a singlestep income statement? a. Gross profit and Income from operations b. Operating expenses and Net income c. Cost of goods sold and Net income d. Net sales and Cost of goods sold

The four subtotals of the multi-step income statement are __________.

Which inventory costing method assigns to ending merchandise inventory the newest- the most recent-costs incurred during the period?

• a. First-in, first-out (FIFO)
• b. Weighted-average
• c. Specific identification
• d. Last-in, first-out (LIFO)