Accounting Exam 2 Actual Exam Questions 2024/2025 Passed

Mr Goeddee deposits $500 in his savings account at the end of every month for three years. The account's annual interest rate is 6%. To determine the balance in the account after three years, he should use: A) i = 0.5% B) n = 3. C) C Table B.2, Future Value of 1 D) All of the above {Ans: i = % 0.5}Which of the following is/are true about the account "Allowance for Bad Debts?" A) it is a contra-asset account B) it appears on both the balance sheet and the income statement C) it is added to accounts receivable to report a more conservative amount D) all the above {Ans: a) it is a contra-asset account}An item of merchandise that was sold for $600 cash by a business using the perpetual inventory system. The item cost $400. After the sale entry has been recorded, what additional entry would be required? A) a debit to sales and credit to inventory for $600 B) a debit to inventory and a credit to cost of goods sold for $400 C) A debit to cost of goods sold and a credit to purchases for $400 D) A debit to cost of