Fixed assets, inventory and payroll quiz

1. 1.FIFO: buy 10 @ $5 then 10 @ $6; sell 14. Cost of goods sold?

   Your answer (dollars)
2. 2.Which costs are capitalized into equipment? Select all that apply.

   Delivery to the siteInstallationRoutine repairs next yearPurchase price

   Select all that apply.

3. 3.Equipment cost $9,000, no salvage, 36-month life. Book value after 12 months?

   Your answer (dollars)
4. 4.Employer payroll taxes are:

   Deducted from employee payNever recordedRevenueAn additional expense to the business
5. 5.Remitting collected sales tax:

   Dr Tax Expense, Cr CashDr Cash, Cr Sales Tax PayableNo entryDr Sales Tax Payable, Cr Cash
6. 6.Gross pay $1,000; this question's fictional total withholding is 18%. Net pay?

   Your answer (dollars)
7. 7.On disposal of equipment, accumulated depreciation is:

   CreditedLeft on the booksTransferred to revenueDebited to remove it
8. 8.Straight-line depreciation in the first year for an asset placed in service on July 1 (monthly convention, calendar year):

   12 months0 months7 months6 months
9. 9.Gross sales $40,000, returns $1,000, COGS $22,000. Gross profit?

   Your answer (dollars)
10. 10.Under a perpetual system, a sale records:

    Only revenueOnly COGSPurchases expenseRevenue at price and COGS at cost
11. 11.Employee withholdings are recorded as:

    A reduction of wages expenseRevenueAn assetA liability until remitted
12. 12.Inventory shrinkage found in a count is:

    Added to revenueIgnoredA liabilityRemoved from inventory and expensed
13. 13.An asset with book value $3,500 is sold for $4,100. Gain on sale?

    Your answer (dollars)
14. 14.A $250 sale with this question's fictional 8% sales tax. Total collected from the customer?

    Your answer (dollars)
15. 15.Output VAT $3,000, input VAT $1,150 (fictional Norland rules). Net VAT payable?

    Your answer (dollars)
16. 16.Cost $20,000, salvage $2,000, life 6 years, straight-line. Annual depreciation?

    Your answer (dollars)

Explanations for every option appear after you submit. Fixed assets, inventory and payroll quiz is self-practice, not a proctored test.