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Study Resources (Accounting)

17) Referring to the following table, what is Net sales revenue? Sales revenue $460,000 Cost of goods sold 300,000 Operating expenses 85,000 Sales discounts 20,000 Sales returns and allowances 15,000 Interest revenue 5,000 A) $400,000 B) $415,000 C) $425,000 D) $455,000 18) Referring to the following table, what is Gross profit? Sales revenue $460,000 Cost of goods sold 300,000 Operating expenses 85,000 Sales discounts 20,000 Sales returns and allowances 15,000 Interest revenue 5,000 A) $90,000 B) $125,000 C) $140,000 D) $160,000 19) On November.
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9) The following is the adjusted trial balance for Tuttle Photography. Accounts Debit Credit Cash $15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation $12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Common stock 10,000 Retained earnings 11,290 Dividends 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 Using the information above, prepare a post-closing trial balance for Tuttle Photography (dated December 31, 2012). .
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9) Under which of the following inventory costing methods is the Cost of goods sold based on the cost of the oldest purchases? A) Specific-unit-cost B) Average-cost C) Last-In, First-Out D) First-In, First-Out 10) Under which of the following inventory costing methods is ending inventory based on the cost of the oldest purchases? A) Specific-unit-cost B) Average-cost C).
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32) Please refer to the worksheet below.  Enter the following adjusting entry into the worksheet: At year-end, the company has only $20 of supplies left.    33) Please refer to the worksheet below.  Enter the following adjusting entry into the worksheet: At year-end, the company records $240 of depreciation expense.     .
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Learning Objective 6-1 1) The consistency principle states that business should use the same accounting methods from period to period. 2) The lower-of-cost-or-market rule demonstrates accounting conservatism in action. 3) If a company discovers a small error in inventory costs-one which would have no significant impact on the financial statement-they may choose.
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26) Please refer to the following information and compute the current ratio: Debit Credit Cash $4,500 Accounts receivable 1,200 Prepaid rent 700 Land 20,000 Equipment 4,000 Accumulated depreciation-equipment $800 Accounts payable 2,900 Salary payable 600 Notes payable-long term 9,000 A) 1.83 B) 0.55 C) 0.51 D) 0.42 27) Please refer to the following information and compute the debt. Debit Credit Cash $4,500 Accounts receivable 1,200 Prepaid rent 700 Land 20,000 Equipment 4,000 Accumulated depreciation-equipment $800 Accounts payable 2,900 Salary payable 600 Notes payable-long term 9,000 A) 1.83 B) 2.37 C) 0.40 D) 0.42 28) Please refer to the following information.
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42) Journalize the following transactions (using the perpetual inventory method).  Paid $230 cash for freight in on merchandise purchased. 43) Journalize the following transactions (using the perpetual inventory method).  Purchased merchandise on account for $4,300. Learning Objective 5-3 1) A sales return is recorded with a credit to Inventory. 2) A sales return.
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6) Asset and liability accounts are closed to the Income summary account.  7) Beginning balance in Retained earnings is $10,000.  Revenues are $200,000.  Expenses are $120,000.  Dividends are $4,000. The ending balance in Retained earnings is $86,000. 8) Beginning balance in Retained earnings is $10,000.  Revenues are $200,000.  Expenses are $120,000. .
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16) A business has Beginning retained earnings of $100,000.   During the year, Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500.  $1,000 of dividends were paid.  The ending balance in Retained earnings, after.
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7) Samson Company had the following balances and transactions during 2013. Beginning inventory 10 units at $70 March 10 Sold 8 units June 10 Purchased 20 units at $80 October 30 Sold 15 units What would the company's Inventory amount be on the December 31, 2013 balance sheet if the perpetual First-In, First-Out costing method is used? (Answers are.
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Learning Objective 5-7 1) With a periodic inventory method, purchases, purchase discounts, and purchase returns and allowances are recorded in separate accounts. 2) With a periodic inventory method, it is necessary to conduct a physical count of inventory to determine cost of goods sold. 3) Which of the following would appear on.
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36) Please refer to the worksheet below:     Post adjustments needed according to the information below, and complete the worksheet. ?At year-end, the company has earned $2,000 of service revenue from a client, but has not yet completed the job, or received a payment. ?At year-end, the company owes $180 of salaries to.
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27) Michelin Jewelers completed the following transactions.  Michelin Jewelers uses the perpetual inventory system.  On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30.   Michelin's cost of the merchandise sold was $5,500.  On April 4, the customer reported damaged goods and Michelin.
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6) A company's ledger shows Inventory balance of $20,000 and a physical count of the inventory shows $19,000.  Which of the following entries is needed to record the shrinkage? A) Cost of goods sold 1,000      Shrinkage expense 1,000 B) Inventory 1,000      Cost of goods sold 1,000 C) Cost of goods sold 1,000      Inventory 1,000 D) Cash 1,000      Inventory 1,000 7) Which of the following accounts is used.
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30) Please refer to the worksheet below.  Enter the following adjusting entry into the worksheet: At year-end, the company has earned $2,000 of service revenue from a client, but has not yet completed the job, or received a payment. 31) Please refer to the worksheet below.  Enter the following adjusting entry.
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11) What is the first step in the accounting cycle for a merchandising company? A) The company sells inventory to customers, creating accounts receivable. B) The company collects cash. C) The company buys inventory. D) The company delivers inventory to customers. 12) Under a perpetual inventory system, which of the following would NOT be required? A).
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47) Please refer to the following adjusted trial balance, and prepare the closing entry for Revenues. Account Title Debit Credit Cash $1,700 Accounts receivable 8,500 Supplies 100 Equipment 7,500 Accumulated depreciation $2,000 Accounts payable 1,200 Salary payable 800 Unearned revenue 600 Common stock 1,000 Retained earnings 2,400 Dividends 2,300 Service revenue 40,000 Salary expense 24,000 Supplies expense 2,300 Depreciation expense 1,600 $48,000 $48,000 48) Please refer to the following adjusted trial balance, and prepare the closing entry for Expenses. Account Title Debit Credit Cash $1,700 Accounts receivable 8,500 Supplies 100 Equipment 7,500 Accumulated depreciation $2,000 Accounts payable 1,200 Salary payable 800 Unearned revenue 600 Common stock 1,000 Retained.
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Learning Objective 5-1 1) The accounting cycle for a merchandising company begins with the purchase of inventory. 2) The periodic inventory system keeps a running record of inventory and cost of goods sold. 3) The perpetual inventory system keeps a running record of inventory and cost of goods sold. 4) The periodic inventory.
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34) On November 1, 2012, Everett Janitorial Supply sold merchandise for $5,000, FOB destination, 2/10, n/30.  The merchandise cost $3,200.  Everett paid transportation costs of $100.  On November 6, 2012, merchandise of $1,000 from the Nov. 1 sale was returned.  The returned merchandise had cost $600.  Please provide the two.
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26) Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?  A) Debit Accumulated depreciation and credit Income summary  B) Debit Depreciation expense and credit Income summary  C) Debit Income summary and credit Accumulated depreciation  D) Debit Income summary and.
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21) Below is a list of various balance sheet accounts and their balances. Debit Credit Notes payable?short term $800 Salary payable 3,600 Notes payable?long term 20,000 Accounts payable 2,200 Unearned revenue 1,000 Interest payable 2,200 What is the total of current liabilities which would be shown on the balance sheet? A) $29,800 B) $9,000 C) $9,800 D) $6,800 22) Below is a list of various balance sheet accounts and their.
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11) Under which of the following categories would Land appear?  A) Long-term assets  B) Current assets  C) Long-term liabilities  D) Current liabilities  12) Under which of the following categories would Accounts payable appear?  A) Current liabilities  B) Current assets  C) Long-term liabilities  D) Long-term assets  13) Which of the following.
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44) The following is the adjusted trial balance for Tuttle Photography. Accounts Debit Credit Cash $15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation $12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Common stock 10,000 Retained earnings 11,290 Dividends 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 Using the information from the worksheet above, prepare the closing entry for Expenses. 45) The following is the adjusted trial balance for Tuttle.
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2) The following is the adjusted trial balance from the worksheet for Tuttle Photography, Inc. Tuttle Photography, Inc. Worksheet For the Year Ended December 31, 2013 Accounts Debit Credit Cash $15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation $12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Common stock 10,000 Retained earnings 11,290 Dividends 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 Using the information from the worksheet above, prepare a statement.
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Learning Objective 4-4 1) The post-closing trial balance is an optional step. 2) The post-closing trial balance shows the updated Retained earnings balance. 3) The post-closing trial balance shows the net income for the period just ended. 4) Only permanent accounts appear on the post-closing trial balance. 5) Only temporary accounts appear on the.
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7) Where do Inventory and Cost of goods sold appear? A) On the balance sheet and statement of retained earnings, respectively B) On the statement of retained earnings and income statement, respectively C) On the balance sheet and income statement, respectively D) On the income statement and statement of cash flows, respectively 8) Which of.
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37) Reid Art Supply Company uses a perpetual inventory system.  The company had the following transactions during August, 2012: Aug. 5Reid Company purchased $2,900 of merchandise on account.  Freight and credit terms were FOB shipping point, 3/15, n/60. Aug. 9Reid Company paid transportation costs of $440 for the Aug. 5 purchase. Aug. 10Reid Company.
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Learning Objective 4-5 1) Assets and liabilities are classified as either current or long-term to show their relative liquidity.  2) Prepaid rent is usually a long-term asset.  3) A debt due to be paid within one year (or operating cycle, if longer) is a current liability.  4) A balance sheet.
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19) Which of the following is TRUE about freight in? A) Freight in is added to the cost of Merchandise inventory. B) Freight in is a selling expense. C) Freight in is an operating expense. D) Freight in is deducted from Accounts payable. 20) A company that uses the perpetual inventory method purchases inventory of.
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28) Using the following worksheet, please prepare a classified balance sheet in account form. The data are for the Alcazar Service Co. for the year ended December 31, 2013.   Learning Objective 4-6 1) The debt ratio measures a company's overall ability to pay stockholders.  2) The current ratio and the debt.
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21) Please refer to the partially completed worksheet below: How much was the Net income? A) $42,000 B) $13,600 C) $22,020 D) $28,400 22) Please refer to the partially completed worksheet below: How much was the net income? A) $42,000 B) $13,600 C) $22,020 D) $28,400 23) Please refer to the following partially completed worksheet: How much was the Net income.
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7) Gross profit is equal to Sales revenue less Sales returns and allowances, and Sales discounts. 8) Net sales revenue is equal to Sales revenue less Cost of goods sold. 9) Which of the following is GENERALLY a merchandiser's major cost? A) Salary expense B) Buildings C) Advertising D) Cost of goods sold 10) A company sold.
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21) The accounting principle that states that we should never anticipate gains is which of the following? A) Accounting conservatism B) Materiality concept C) Disclosure principle D) Consistency principle 22) Which of the following concepts states that a company must perform strictly proper accounting ONLY for significant items? A) Accounting conservatism B) Materiality concept C) Disclosure principle D) Consistency.
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16) Salaries payable is a permanent account. 17) Common stock is a temporary account. 18) Accumulated depreciation is a permanent account. 19) Service revenue is a temporary account. 20) Depreciation expense is a temporary account. 21) Service revenue is a permanent account. 22) Salary expense is a temporary account. 23) Dividends is a permanent account. 24) Retained earnings.
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34) Please refer to the worksheet below.  Adjusting entries have been posted.  Please calculate the adjusted balances for all accounts and enter them in to the columns marked Adjusted trial Balance. 35) Please refer to the worksheet below.  Please complete the worksheet, including the balancing amounts in the last row. .
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4) Using the following worksheet, please prepare an income statement.  The data are for the Alcazar Service Co., for the year ended December 31, 2012. 5) Using the following worksheet, please prepare a statement of retained earnings. The data are for the Alcazar Service Co., for the year ended December 31,.
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11) Avery Supplies uses periodic inventory.  Avery purchased $10,000 of inventory on account.  The terms were 3/10, n/30.   The purchase was made on February 1.  Which of the following journal entries properly records this transaction? A) Purchases 10,000      Accounts payable 10,000 B) Accounts payable 10,000      Purchases 10,000 C) Inventory 10,000      Accounts payable 10,000 D) Inventory 10,000      Cash 10,000 12) Avery Supplies uses periodic inventory.  Avery purchased $10,000.
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21) An adjusted trial balance is shown below. Debit Credit Cash $12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable $4,200 Salary payable 1,000 Notes payable 800 Common stock 1,000 Retained earnings 12,800 Dividends 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expense 14,000 Depreciation expense 8,500 Supplies expense 500 Total $115,800 $115,800 Please provide the third closing entry: 22) An adjusted trial balance is shown below. Debit Credit Cash $12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable $4,200 Salary payable 1,000 Notes payable 800 Common stock 1,000 Retained earnings 12,800 Dividends 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales.
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