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81) Which of the following is the gross profit percentage? A) Gross profit plus net sales revenue B) Gross profit times net sales revenue C) Gross profit divided by net sales revenue D) Gross profit minus net sales revenue 82) Which of the following correctly describes the rate of inventory turnover? A) It is how many.
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41) Fantasia Enterprises received a tax refund cheque in the mail and immediately deposited it in the bank. Assuming the use of special journals, this entry would be recorded in the: A) general journal. B) cash receipts journal. C) cash payments journal. D) none of the above 42) Litten Enterprises received payment in full from.
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26) Using the perpetual inventory system, discounts taken on an invoice, such as 3/10, n/30, would be: A) credited to Inventory. B) debited to Cost of sales. C) credited to Cost of sales. D) debited to Inventory. 27) When a firm ships goods to a customer and pays for freight out, how is that cost.
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21) Which of the following does NOT appear on the worksheet? A) Adjusting entries B) Closing entries C) Adjusted balances D) Profit 22) Where can closing entries be found? A) In a company's general journal B) On a company's worksheet C) On a company's statement of changes in equity D) On a company's balance sheet 23) Which of the following.
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1) Which of the following states that the business should use the same accounting methods from period to period? A) Accounting conservatism B) Materiality concept C) Comparability principle D) Relevance principle 2) Which of the following states that a company must perform strictly proper accounting ONLY for items that are significant to the company's financial.
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21) Which of the following is TRUE about freight in? A) Freight in is a selling expense. B) Freight in is deducted from Accounts payable. C) Freight in is added to the cost of inventory. D) Freight in is an operating expense. 22) FOB shipping point means that the: A) seller normally pays the transportation costs. B).
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6) Which of the following concepts states that a company must perform strictly proper accounting ONLY for significant items? A) Consistency principle B) Accounting conservatism C) Disclosure principle D) Materiality concept TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 7) The comparability principle states that a business should use.
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56) Rubal Ltd earned revenue of $600,000 and incurred cost of sales of $340,000. Calculate the gross profit percentage. A) 21.65% B) 56.7% C) 100% D) 43.3% 57) The beginning inventory of Soft Toys Company was $42,000. The purchases (excluding returns) and sales revenue for the year were $250,000 and $320,000, respectively. The purchase returns.
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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 66) Assets and liabilities are classified as either current or non-current to show their relative liquidity. 67) Prepaid rent is usually a non-current asset. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the.
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 91) A firm uses the periodic inventory method. Which of the following entries would be made to record a $1 100 purchase of inventory on credit, including GST? A) The accounting entry would be a $1 000.
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36) Rose Company earned revenues of $18,000 and incurred expenses of $4000. The drawings of Mary Rose, the owner, were $2500. What is the balance in the Income summary account after closing profit or loss to the Rose, capital account? A) Credit balance of $4000 B) Credit balance of $14,000 C) Debit balance.
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31) A company using the perpetual inventory system purchased inventory worth $510,000 on credit with terms of credit being 3/15, n/45. Defective inventory of $80,000 was returned 2 days later and the accounts were appropriately adjusted. If the company paid the invoice 20 days later, the journal entry to record.
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16) The perpetual inventory system keeps a running record of inventory and cost of sales. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 17) What is a purchase return? A) A return of inventory that is defective or damaged B) A price reduction C) A customer refund from.
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11) Which of the following accounts would appear in the Income statement credit column? A) Prepaid insurance B) Depreciation expense C) Service revenue D) Unearned service revenue 12) Which of the following accounts would appear in the balance sheet debit column? A) Prepaid insurance B) Accumulated depreciation C) Service revenue D) Unearned service revenue TRUE/FALSE. Write 'T' if the statement.
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 61) Evans Company had the following balances and transactions during 2016.   Beginning inventory 30 units at $70 10 March Sold 27 units 10 June Purchased 90 units at $80 30 October Sold 84 units   What is the amount of the company's inventory, as disclosed in.
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1) A company's computer data processing system consists of: A) personnel, records, procedures. B) software, hardware, personnel. C) general journal, special journal, general ledger. D) none of the above 2) The main computer in a network, where the program and data are stored, is called the: A) hardware. B) server. C) software. D) database. 3) The set of programs that.
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71) Which of the following is subtracted from Gross profit to arrive at Net profit? A) Cost of goods available for sale B) Operating expenses C) Cost of sales D) Sales discounts and Sales returns and allowances 72) Where do Inventory and Cost of sales appear? A) On the balance sheet and income statement, respectively B) On.
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36) Which of the following inventory costing methods yields the highest cost of sales when costs are rising during the accounting period? A) Average cost B) First-in, first-out C) Last-in, first-out D) Specific unit cost 37) Which of the following inventory costing methods yields the highest Gross profit when costs are rising during the accounting.
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 41) Which of the following is GENERALLY the major cost of inventory? A) Salary expense B) Advertising C) Buildings D) Cost of sales 42) A firm sold inventory for $350 that cost $221. The entry to record the cost of the.
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76) Refer to the following trial balance.     Debit Credit Cash $18,000   Accounts receivable 40,000   Inventory 63,000   Supplies 15,000   Land 300,000   Accounts payable   $5000 Loan payable   21,000 Smith, capital   325,000 Drawings 4000   Sales revenue   460,000 Sales returns and allowances 7000   Sales discounts 9000   Cost of sales 210,000   Salaries expense 16,000   Electricity and gas expense 68,000   Rent expense 56,000   Interest expense 5000 ________ Totals $811,000 $811,000   How much is the net sales revenue? A) $462,000 B) $110,000 C) $444,000 D) $105,000 TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 77) Cost of.
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26) Which of the following accounts will be closed by debiting the Income summary account? A) Accumulated depreciation B) Service revenue C) Accounts payable D) Depreciation expense 27) Which of the following accounts will be closed by crediting the Income summary account? A) Accounts payable B) Service revenue C) Depreciation expense D) Accumulated depreciation 28) Which of the following accounts.
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46) The end-of-month balance in Dryer Industries' cash receipts journal's 'Other accounts, amount' column is $22 630. How will this column be posted? A) The total will be posted to the cash account as a debit. B) The total will not be posted. C) The individual items will be posted to their respective.
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56) The purchase of equipment for cash would be recorded in the: A) sales journal. B) purchases journal. C) general journal. D) cash payments journal. 57) Assuming the use of special journals, the purchase of inventory from Landin Browning for cash would be recorded in the: A) cash receipts journal. B) general journal. C) cash payments journal. D) purchases.
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26) Harris Company had the following balances and transactions during 2016:   Beginning inventory 175 units at $82 10 March Sold 50 units 10 June Purchased 225 units at $86 30 October Sold 225 units   What would the cost of sales be as reported on the income statement for the year ending 31 December 2016 if the perpetual first-in, first-out.
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 16) Which of the following is true of a completed worksheet? A) The total debits equal the total credits in each column. B) The total debits in the income statement column equal the total credits in the balance.
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96) Calculate the cost of sales for a retailer using the periodic inventory system from the following details.   Purchases $520,000 Beginning inventory 180,000 Purchase returns and allowances 50,000 Purchase discounts 12,000 Freight in 18,000 Ending inventory 180,000   A) $520,000 B) $476,000 C) $836,000 D) $494,000 97) The following details are provided by Blue Bell Retailers. The company uses the periodic inventory system.   Net sales $200,000 Purchases 90,000 Purchase returns and allowances 1800 Purchase discounts 1500 Freight.
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11) The materiality concept requires that a company should report enough information for outsiders to make wise decisions about the company. 12) A company discovers that its Cost of sales is understated by an insignificant amount. They do NOT need to correct the error because of the conservatism principle. MULTIPLE CHOICE. Choose.
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61) Below is a list of various balance sheet accounts and their balances.     Debit Credit Building $120,000   Cash 10,000   Supplies 800   Furniture 3000   Prepaid insurance 650   Accumulated depreciation—furniture   $4000 Land 33,000   Accumulated depreciation—building   4300 Accounts receivable 2200     What are the total current assets that would be shown on the balance sheet? A) $11,450 B) $10,800 C) $13,650 D) $15,200 62) Below is a list of various balance sheet accounts and their balances.     Debit Credit Building $130,000   Cash 7000   Supplies 1000   Furniture 6000   Prepaid insurance 4700   Accumulated depreciation—furniture   $950 Land 34,000   Accumulated depreciation—building   4700 Accounts receivable 950     What.
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51) Transactions in the sales journal are posted to both the general ledger and the accounts receivable subsidiary ledger. 52) The sum of the account balances in the accounts receivable subsidiary ledger should equal the balance in the accounts receivable account in the general ledger. 53) Debit postings to the accounts receivable.
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16) A new average cost is calculated after each purchase when a business is using which of the following methods? A) First-in, first-out B) Average cost C) Specific unit cost D) Last-in, first-out TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 17) Ending inventory equals the number of units.
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31) A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7000 and paid $950 for the freight-in. The company sold the whole lot to a supermarket chain for $13,000 on account. Which of the following entries correctly records the sale? A) Accounts receivable 13,000   Sales revenue   13,000   Cost of sales 7950   Inventory   7950   B) Sales.
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81) Calculate the current ratio using the following information:   Cash $7000 Accounts receivable 1400 Prepaid rent 800 Land 20,000 Equipment 6000 Accumulated depreciation 1200 Accounts payable 4000 Salaries payable 800 Loan payable, non-current 10,000   A) 2.3 B) 1.92 C) 1.32 D) 1.75 TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 82) The current ratio and the debt ratio are shown on the Income statement. 83) The current ratio.
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71) Which of the following does the current ratio measure? A) The company's overall ability to pay liabilities B) The company's rate of cash flow C) The proportion of the company's assets that are financed with debt D) The company's ability to pay current liabilities with current assets 72) Which of the following does the.
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46) Which of the following is used for net realisable value when valuing inventory at lower-of-cost-and-net-realisable-value? A) Sales price less the company's normal markup percentage B) Sales price C) Sales price less costs of completing, marketing, selling and distributing the inventory to customers D) Cost plus the company's normal markup percentage 47) Misty Company had.
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46) In a perpetual inventory system, goods returned by the customer for a refund is called a: A) sales discount. B) sales allowance. C) sales return. D) sales adjustment. 47) Michelin Jewellers completed the following transactions. Michelin Jewellers uses the perpetual inventory system. On 2 April, Michelin sold $9 900 of inventory, including GST, to.
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