Multiple choice

When preparing a bank reconciliation, which of the following items should be added to the book balance?

EFT receipts

deposits in transit

collection items

both EFT receipts and collection items

Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?

net income

expenses

dividends

all of these answers are correct

The use of the FIFO method increases taxable income:

when prices are constant

when prices are declining

when prices are increasing

under all circumstances

A company mistakenly destroys a unit of inventory that originally cost 12. The company included the cost of the destroyed unit in cost of goods sold on the income statement, rather than recognizing it as a loss. This action is justifiable based on:

the...