1. In reference to a promissory note, the person who is to receive payment is called the maker.
payee.
seller.
payor.
2. In reference to a promissory note, the person who makes the promise to pay is called the maker.
payee.
seller.
receiver.
3. The amount of the promissory note plus the interest earned on the due date is called the realizable value.
maturity value.
face value.
net realizable value.
4. Receivables are usually a significant portion of total current liabilities.
total liabilities.
total current assets.
total assets.
5. When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called first-in, last-out.
last-in, first-out.
first-in, first-out.
average cost.
6. Merchandise inventory is reported on the balance sheet in the section entitled current assets.
fixed assets.
current liabilities.
stockholders' equity.
7. A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account.
The face value of the note is $6,100.
$5,400.
$5,900.
$6,000.
8. The inventory data for an item for November are:
|
Nov. 1
|
Inventory
|
25 units at $20
|
|
10
|
Purchased
|
30 units at $21
|
|
30
|
Purchased
|
10 units at $22
|
|
Sold
|
35 units
|
Using the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30? $640
$605
$623
$660
9. The inventory method that assigns the most recent costs to cost of goods sold is FIFO.
LIFO.
average cost.
specific identification.
10. The due date of a 90-day note dated July 5 is September 30.
October 2.
October 3.
October 1.