Info
Warning
Danger

Study Resources (Accounting)

4.3   Prepare and use a bank reconciliation 1) When preparing a bank reconciliation, which of the following items would be subtracted from the bank balance on the bank statement? A) deposits in transit B) bank service charges C) EFT cash payments D) outstanding cheques 2) When preparing a bank reconciliation, which of the following items would.
5 Views
View Answer
3.3   Record adjusting journal entries 1) An accountant who uses the accrual basis of accounting receives cash in advance for services yet to be performed. The entry to record this transaction will include a credit to which of the following accounts? A) Unearned Service Revenue B) Prepaid Expense C) Unearned Expense D) Service Revenue 2) A.
7 Views
View Answer
31) Accounts receivable normally has a credit balance. 32) The revenue account typically has a credit balance. 33) The trial balance is the starting point for preparing the organization's financial statements. 34) All revenue accounts normally have a credit balance. 35) All shareholders equity accounts typically have a credit balance except for dividends which.
4 Views
View Answer
22) The following data pertain to Home Office Company for the year ended December 31, 2014: Sales (25% were cash sales) during the year$1,100,600 Cost of goods sold during the year690,300 Beginning inventory319,800 Purchases (10% were cash purchases) during the year738,200 a.Prepare journal entries to record sales, cost of goods sold, and the purchase of.
5 Views
View Answer
5.6   Evaluate a company's liquidity 1) Which of the following ratios is considered to be a more stringent measure of a company's ability to pay its current liabilities than the current ratio? A) acid-test ratio B) equity ratio C) debt ratio D) days' sales in receivables 2) A company has $50,000 in cash, $85,000 in short-term.
10 Views
View Answer
3.5   Record closing journal entries 1) Assume the beginning balance in the Retained Earnings account is zero. If a debit balance exists in Retained Earnings after closing out revenues and expenses at the end of the current period, it indicates; A) the company had net income for the current period B) an increase.
7 Views
View Answer
11) Under a perpetual inventory system, which of the following entries would record the purchase of merchandise on credit? A) Debit Inventory and credit Accounts Payable B) Credit Purchases and Debit Cost of Goods Sold C) Credit Sales and debit Accounts Receivable D) Debit Purchases and credit Accounts Payable 12) Under a periodic inventory system,.
7 Views
View Answer
5.1   Account for short-term investments 1) Short-term investments: A) are equity securities B) are debt securities C) may be classified as either debt or equity securities D) represents Accounts Receivable and notes receivable on the balance sheet 2) The purchase of short-term investments: A) increases assets B) increases liabilities C) increases equity D) has no effect on assets 3) Corporations invest.
14 Views
View Answer
48) Identify the normal balance for the Retained Earnings account and expense accounts. What is the reasoning behind the "normal balances" for these accounts? 49) Describe what is listed on a trial balance. 50) Use T-accounts to analyze the following transactions for the Red Panda Corporation: a. Owner invested $550,000 cash and.
8 Views
View Answer
61) Briefly explain the difference between the cash basis of accounting and the accrual basis of accounting. Are adjusting entries necessary under both methods? 62) Ed Ng is a friend of yours from university. After finishing high school he decided to open his own human resources consulting business rather than working.
3 Views
View Answer
18) The post closing trial balance for Adam Samuel Corporation on December 31, 2013, is shown below. Adam Samuel Corporation post closing Trial Balance December 31, 2013 DebitCredit Cash$24,500 Accounts receivable5,400 Supplies850 Prepaid insurance2,100 Building40,500 Accumulated amortization-building$7,500 Equipment22,300 Accumulated amortization-equipment3,400 Accounts payable6,500 Unearned service revenue8,400 Salary payable 900 Common shares50,200 Retained earnings________18,750 $95,650$95,650 a.Calculate the current ratio and the debt ratio. Assume the unearned service revenue will be earned.
5 Views
View Answer
11) The adjusting entry for supplies used during the current period will involve a credit to: A) Supplies B) Supplies Expense C) Accrued Supplies D) Supplies Revenue 12) An adjustment of an asset for which the business paid cash in advance is: A) a deferral B) an accrual C) unearned revenue D) revenue recognition 13) The adjusting entry to allocate.
5 Views
View Answer
4.1   Describe fraud and its impact 1) All of the following are purposes of internal control except: A) to safeguard assets B) to ensure accurate and reliable accounting records C) to encourage adherence to company policies D) to promote operational inefficiency 2) Who has the primary responsibility for establishing and maintaining a company's system of internal.
12 Views
View Answer
21) Under the allowance method, if bad debt write-offs during the year exceed the allowance amount, the balance in Allowance for Uncollectible Accounts at year end prior to adjustment: A) should be deducted from Accounts Receivable B) will be zero C) will be a debit D) should be adjusted by debiting it to bring.
7 Views
View Answer
56) State the effect on net income, total assets, total liabilities, and shareholders' equity if the following adjustments are omitted by completing the chart below. a.Utilities expense incurred but not yet paid, $350. b.Supplies used during the current period, $650. c.Service revenue earned, but not yet collected, $4,500. d.Unearned revenue earned during the period,.
3 Views
View Answer
3.2   Apply the revenue and expense recognition principles 1) An accrual refers to an event: A) where the expense or revenue is recorded after the cash settlement B) where the liability is recorded after the cash settlement C) where the expense or revenue is recorded before the cash settlement. D)  where the asset is recorded.
15 Views
View Answer
40) Describe the effect on the financial statements of each of the following transactions, assuming the allowance method of estimating bad debts is used: a. adjusting the books to record the estimated bad debts b. writing off an account as uncollectible c. recovery of an account previously written off as uncollectible 41) StorageTek Corporation.
8 Views
View Answer
43) What is a bank reconciliation? Why is it important to prepare a bank reconciliation every month when the bank statement is received from the bank? 44) Prepare a bank reconciliation dated December 31, 2014, for Welcome Inc. based on the following information. ?Balance per bank statement is $21,200.68. ?Balance per books is.
3 Views
View Answer
51) Prepare adjusting entries dated December 31, 2013, based on the following data. a.A two-year insurance policy costing $3,000 was purchased on October 31, 2013. b.Salaries owed to employees on December 31, 2013, amount to $2,300. c.The balance in Supplies before adjustment is $1,400. A physical count reveals $450 of supplies on hand.
4 Views
View Answer
3.4   Prepare the financial statements 1) In what order are financial statements generally prepared? A) balance sheet, statement of retained earnings, and income statement B) income statement, statement of retained earnings, and balance sheet C) income statement, balance sheet, and statement of retained earnings D) statement of retained earnings, income statement, and balance sheet 2) Why.
4 Views
View Answer
11) Which principle of accounting prescribes the use of the allowance method of accounting for bad debts? A) full disclosure principle B) historical cost principle C) revenue recognition principle D) matching principle 12) After a customer's account has been written off under the allowance method, the customer sends the company the amount owed. Before the.
4 Views
View Answer
5.2   Account for and control receivables 1) A ledger that contains a separate account for each customer is called an accounts receivable: A) control ledger B) current ledger C) trade ledger D) subsidiary ledger 2) A critical element of internal control over collections of accounts receivables is: A) depositing the cash from the cash register on a.
8 Views
View Answer
31) What effect does an accrued expense adjustment have on the financial statements? A) The adjustment increases expenses and decreases assets. B) The adjustment decreases expenses and increases liabilities. C) The adjustment increases expenses and increases liabilities. D) The adjustment increases expenses and increases net income. 32) On June 1, 2014, Destiny Ltd. received $3,600.
12 Views
View Answer
3.6   Analyze and evaluate a company's debt-paying ability 1) The current ratio is computed by: A) dividing current assets by current liabilities B) dividing current assets by non-current liabilities C) dividing current liabilities by current assets D) dividing current assets by non-current assets 2) Which of the four accounts listed below would be considered the most.
6 Views
View Answer
16) Identify and briefly describe the five components of internal control 17) List and describe at least five characteristics of an effective system of internal control. What is one inherent limitation/weakness of any system of internal control? 18) In each of the following situations, identify the internal control weakness as well as.
6 Views
View Answer
4.4   Apply internal controls to cash receipts and cash payments 1) A petty cash system facilitates: A) payments of all business expenses by cash B) payments of all business expenses by cheque C) payment of small business expenses by cash D) receipt of small invoices from customers in cash 2) To control payments for purchases of.
6 Views
View Answer
21) The normal balance of a liability account is a ________ and the normal balance of the common shares account is a ________. A) debit, credit B) debit, debit C) credit, debit D) credit, credit 22) Which of the following accounts does not have a normal credit balance? A) Retained Earnings B) Common Shares C) Accounts Payable D) Inventory 23).
5 Views
View Answer
4.2   Explain the objectives and components of internal control 1) For effective internal control in an organization, who should keep the inventory records? A) accountant B) treasurer C) sales persons D) inventory warehouse supervisor 2) Which characteristic will not be found in an effective system of internal control? A) a combination of duties B) a separation of duties C).
7 Views
View Answer
3.1   Explain how accrual accounting differs from cash-basis accounting 1) There are two methods used to account for transactions. These methods are: A) cash and deferral B) cash and accrual C) accrual and deferral D) deferral and prepaid 2) An accountant who records a transaction only when cash is received or disbursed is using which basis.
11 Views
View Answer
11) The post closing trial balance contains which of the following accounts? A) Depreciation Expense B) Service Revenue C) Accumulated Depreciation D) Dividends 12) Which of the accounts listed below is not a temporary (or nominal) account? A) Dividends B) Rent Expense C) Sales Revenue D) Salary Payable 13) Salaries expense is a permanent account, so it is not closed.
6 Views
View Answer
6.2   Explain and apply three inventory costing methods 1) Given the following data, what is the weighted-average cost of ending inventory rounded to the nearest whole dollar? (Do not round in the process of your calculations, only round your final answer.) Sales revenue100 units at $15 per unit Beginning inventory40 units at $9.
5 Views
View Answer
37) Record entries for the following transactions for UTF-8 Corp. UTF-8 Corp. maintains an Allowance for Uncollectible Accounts. a. Sold merchandise on account to Java Ltd., $1,800. b. Sold merchandise on account to Centera, $759. c. Wrote off both the Java Ltd. and the Centera accounts. d. Centera unexpectedly paid off his account in.
8 Views
View Answer
39) Given the following transactions for Clip Corporation, prepare a trial balance as of March 31, 2014. a. Owner invested $15,250 cash and $6,500 worth of equipment into the business received common shares in return. b. Purchased supplies on account, $450. c. Rented office space paying one months rent, $850. d. Performed services for.
5 Views
View Answer
42) Fox Ltd. had the following trial balance on October 31, 2014. Fox Ltd. Trial Balance October 31, 2014 DebitCredit Cash$56,500 Accounts receivable20,000 Notes receivable5,000 Land80,000 Accounts payable$10,200 Note payable15,000 Common shares105,500 Service revenue34,000 Salary expense12,000 Advertising expense5,000________ $178,500$164,700 The following errors caused the trial balance not to balance: a. Recorded a $2,000 debit to Note Payable as a debit to Note Receivable. b. Posted a $3,000 credit.
5 Views
View Answer
43) The December 31, 2014 unadjusted trial balance of Eel Creek Ltd. (Eel) disclosed the following balances: Accounts receivable$400,000 Allowance for doubtful accounts 24,000 cr. Net Credit Sales 1,400,000 Additionally, the firm has given up trying to collect on $19,000 from a customer who recently declared bankruptcy. Eel's management has not yet written off.
5 Views
View Answer
5.4   Account for notes receivable 1) When a note matures, the payee should record: A) interest payable B) interest expense C) interest revenue D) unearned revenue 2) When a note matures, the maker should record: A) interest expense B) interest revenue C) interest receivable D) unearned revenue 3) A written promise to pay a specified amount of money at a particular.
5 Views
View Answer
5.3   Estimate and account for uncollectible accounts receivables 1) The Bad Debt Expense account is classified: A) as a contra-asset account B) as part of cost of goods sold C) as the cost to the seller of extending credit D) deducted from Accounts Receivable account on the balance sheet 2) What category of account is the.
4 Views
View Answer
6.1   Account for inventory using the perpetual and periodic inventory systems 1) The largest expense category on the income statement of most merchandising companies is: A) cost of goods sold B) other expenses C) selling expenses D) administrative expenses 2) Which of the following would not be included in the Inventory account on a merchandising company's.
14 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16196 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!