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Study Resources (Accounting)

31) The entry to record depreciation includes a credit to the ________. A) the Depreciation Payable account B) the Cash account C) the Accumulated Depreciation account D) the Depreciation Expense account 32) If an adjusting entry includes a debit to Rent Expense, that would indicate that the payment of rent had been previously recorded as.
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Learning Objective 4-2 1) The last two columns generally found on the right side of the worksheet are the income statement columns. 2) Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet. 3).
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11) Under the perpetual inventory system, purchase returns or allowances are debited to the Merchandise Inventory account by the purchaser. 12) Under the perpetual inventory system, when a purchaser makes payment within the discount period, the amount of discount will be credited to the Merchandise Inventory account. 13) Under the terms FOB.
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Learning Objective 3-6 1) A worksheet is an external document that forms a part of the financial statements. 2) The worksheet is NOT a journal, a ledger, or a financial statement. 3) GAAP requires a public company to prepare a worksheet for financial reporting purposes. 4) An internal document that helps summarize data for.
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49) The following is the adjusted trial balance as of December 31, 2015 of Current Times Watch Inc.: Accounts Debit Credit Cash $ 18,000 Accounts Receivable 30,000 Prepaid Insurance 9,000 Office Supplies 3,200 Building 165,000 Accumulated Depreciation—Building $ 12,000 Equipment 88,000 Accumulated Depreciation—Equipment 8,500 Land 45,000 Accounts Payable 12,000 Salaries Payable 2,000 Unearned service revenue 25,000 Mortgage Payable 100,000 Common Stock 21,290 Dividends 25,840 Service Revenue 325,000 Salaries Expense 63,000 Depreciation Expense—Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 _______ Total $505,790 $505,790 Provide the closing entry for the Income Summary account. .
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46) Refer to the following adjusted trial balance. Accounts Debit Credit Cash $1,700 Accounts Receivable 8,500 Office Supplies 100 Equipment 15,500 Accumulated Depreciation—Equipment $2,000 Accounts Payable 1,200 Salaries Payable 800 Unearned Revenue 600 Common Stock 3,400 Dividends 3,000 Service Revenue 50,000 Salaries Expense 25,000 Supplies Expense 2,400 Depreciation Expense—Equipment 1,800 ______ Total $58,000 $58,000 What will be the final ending balance in the Retained Earnings account after posting the closing entries? A) $17,800 B) $20,800 C) $24,200 D) $23,800 .
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50) The following is the adjusted trial balance as of December 31, 2015 of Current Times Watch Inc.: Accounts Debit Credit Cash $ 18,000 Accounts Receivable 30,000 Prepaid Insurance 9,000 Office Supplies 3,200 Building 165,000 Accumulated Depreciation—Building $ 12,000 Equipment 88,000 Accumulated Depreciation—Equipment 8,500 Land 45,000 Accounts Payable 12,000 Salaries Payable 2,000 Unearned service revenue 25,000 Mortgage Payable 100,000 Common Stock 21,290 Dividends 25,840 Service Revenue 325,000 Salaries Expense 63,000 Depreciation Expense—Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 _______ Total $505,790 $505,790 Provide the closing entry for Dividends. .
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31) Which of the following account's balance is carried forward to the next accounting period? A) Accumulated Depreciation B) Depreciation Expense C) Dividends D) Sales Revenue 32) Which of the following is a permanent account? A) Wages Expense B) Salary Payable C) Service Revenue D) Utilities Expense 33) Which of the following accounts will be closed by debiting the Income.
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51) The Accumulated Depreciation account is ________. A) a record of the sum of all the depreciation expense recorded B) the price quoted to the buyer of a used asset C) an expense account D) the expense account used to expense the cost of an asset 52) On January 1, 2015, the Accounts Receivable of.
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Learning Objective 4-7 1) Generally Accepted Accounting Principles (GAAP) require every organization to prepare reversing entries. 2) Reversing entries ease the burden of accounting for transactions in a later period. 3) Reversing entries are dated on the first day of the new accounting period. 4) A reversing entry is ________. A) a journal entry used.
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61) Saturn Inc. signed a one-year $48,000 note payable at 8% interest on May 1, 2014. If Saturn Inc. only adjusts its accounts once a year at year-end, how much interest expense was accrued on December 31, 2014? A) $1,280 B) $3,840 C) $2,560 D) $3,200 62) Accumulated Depreciation is a(n) ________ account and carries.
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52) The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Account Debit Credit Cash $1,700 Accounts Receivable 8,500 Supplies 100 Equipment 7,500 Accumulated Depreciation—Equipment $2,000 Accounts Payable 1,200 Salaries Payable 800 Unearned Revenue 600 Common Stock 3,400 Dividends 2,300 Service Revenue 40,000 Salaries Expense 24,000 Supplies Expense 2,300 Depreciation Expense—Equipment 1,600 ______ Total $48,000 $48,000 Provide the closing entry for expenses. .
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Learning Objective 5-3 1) An amount that a merchandiser earns by selling its inventory is known as Sales Revenue or Sales. 2) When a customer returns goods to the seller, the seller records it as purchase returns. 3) When a merchandiser records sales returns, the Accounts Receivable account is credited. The seller uses.
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51) The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Account Debit Credit Cash $1,700 Accounts Receivable 8,500 Supplies 100 Equipment 7,500 Accumulated Depreciation—Equipment $2,000 Accounts Payable 1,200 Salaries Payable 800 Unearned Revenue 600 Common Stock 3,400 Dividends 2,300 Service Revenue 40,000 Salaries Expense 24,000 Supplies Expense 2,300 Depreciation Expense—Equipment 1,600 ______ Total $48,000 $48,000 Provide the closing entry for Service Revenue. .
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Learning Objective 3-4 1) An adjusted trial balance does not list the revenues and expenses of a business. 2) The adjusted trial balance shows ________. A) account balances after adjustments B) revenue and expense accounts only C) account balances before adjustments D) balance sheet accounts only 3) Deborah Consultants had the following accounts and account balances after.
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41) Which of the following is a contra account? A) Depreciation Expense B) Accumulated Depreciation C) Unearned Revenue D) Earned Revenue 42) Accrued revenue is revenue that ________. A) has been collected and earned B) the business has collected in cash, but not yet earned C) the business has earned, but not yet collected in cash D) will be.
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11) In the case of unearned revenue, the adjusting entry at the end of the period includes a credit to Service Revenue. Assume the unearned revenue is initially recorded as a liability. 12) The contra asset accounts, like Accumulated Depreciation, always have normal debit balances. 13) On January 1, 2014, Prepaid Insurance.
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15) Swan Song's adjusted trial balance as of December 31, 2014 is given below: Debit Credit Cash $ 12,000 Accounts Receivable 9,000 Prepaid Rent 6,000 Prepaid Insurance 2,300 Office Supplies 3,200 Building 52,200 Accumulated Depreciation—Building $11,500 Equipment 35,000 Accumulated Depreciation—Equipment 7,000 Land 40,000 Accounts Payable 6,550 Salaries Payable 4,000 Interest Payable 2,240 Mortgage Payable (long term) 51,200 Common Stock 10,000 Dividends 20,590 Service Revenue 190,000 Salaries Expense 43,000 Insurance Expense 5,000 Rent Expense 12,000 Utilities Expense 15,000 Advertising Expense 9,000 Depreciation Expense—Building 10,000 Depreciation Expense—Equipment 7,000 Office Supplies Expense 1,200 ________ Total $282,490 $282,490 Compute the current ratio. A) 2.07 B) 1.83 C) 1.64 D) 2.54 .
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Learning Objective 5-1 1) A wholesaler is a merchandiser who buys merchandise from a manufacturer and sells the same to a retailer. 2) G-mart, a small-scale grocer, wants to introduce an inventory system to track its inventory. G-mart does not currently use optical scanning registers and computer systems. The perpetual inventory system.
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21) Kostner Financial Services Inc. performed accounting services for a client in December. A bill was mailed to the client on December 30. The company received the client's check by mail on January 5. Which of the following accounts should appear on the income statement for the year ended December.
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Learning Objective 3-2 1) The revenue recognition principle is the basis for recording revenues?both when to record revenue and the amount of revenue to record. 2) In accounting terms, the calendar year is always called the fiscal year. 3) Which of the following is considered a fiscal year? A) six months B) three months C) twelve.
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16) Calculate the current ratio using the following information: Cash$5,000 Accounts Receivable1,400 Prepaid Rent900 Land20,000 Equipment4,000 Accumulated Depreciation800 Accounts Payable3,000 Salaries Payable800 Notes Payable—long term9,000 A) 1.92 B) 2.43 C) 1.55 D) 1.68 .
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47) The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Inc.: Accounts Debit Credit Cash $ 18,000 Accounts Receivable 30,000 Prepaid Insurance 9,000 Office Supplies 3,200 Building 165,000 Accumulated Depreciation—Building $ 12,000 Equipment 88,000 Accumulated Depreciation—Equipment 8,500 Land 45,000 Accounts Payable 12,000 Salaries Payable 2,000 Unearned service revenue 25,000 Mortgage Payable 100,000 Common Stock 21,290 Dividends 25,840 Service Revenue 325,000 Salaries Expense 63,000 Depreciation Expense—Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 _______ Total $505,790 $505,790 Provide the closing entry for Service Revenue. .
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45) The following is the adjusted trial balance for Tuttle Photography. Accounts Debit Credit Cash $ 20,000 Accounts Receivable 30,000 Prepaid Insurance 7,500 Office Supplies 3,200 Building 150,000 Accumulated Depreciation—Building $12,000 Equipment 75,000 Accumulated Depreciation—Equipment 8,500 Land 50,000 Accounts Payable 20,000 Salaries Payable 4,000 Unearned service revenue 25,000 Mortgage Payable 100,000 Common Stock 10,000 Retained Earnings 11,290 Dividends 25,000 Service Revenue 289,000 Salaries Expense 64,000 Depreciation Expense—Building and Equipment 6,150 Supplies Expense 14,040 Insurance Expense 14,000 Utilities Expense 20,900 ________ Total $479,790 $479,790 After the closing entries, what will the final balance in Retained Earnings be? A) $25,000 B) $191,200 C) $21,290 D) $156,200 .
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9) The partial worksheet of Ruth Furniture is as follows: Ruth Furniture Worksheet December 31, 2014 Unadjusted Trial Adjusted Trial BalanceAdjustmentsBalance Account NamesDebit  Credit   Debit  Credit   Debit Credit Cash$6,500 Accounts Receivable2,000$3,000 Office Supplies1,800$500 Equipment15,000 Accumulated Depreciation—Equipment$8,7001,200 Common Stock15,000 Dividends3,000 Service Revenue10,6003,000 Salaries Expense4,000 Rent Expense2,000 Depreciation Expense— Equipment1,200 Supplies Expense____________500_____ Total$34,300$34,300$4,700$4,700 Calculate and enter the amounts for the Adjusted Trial Balance columns. .
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41) WAXS-D, merchandisers of musical instruments, has provided the following details: Mar.5 Inventory purchased $800,000 Mar.8 Freight in 40,000 Mar.13 Purchase returns 60,000 Mar.14 Allowances by vendor 15,000 Mar.20 Payment made to vendor for purchases on March 5 ? Credit terms are: 3/20, n/45, FOB shipping. Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month. A) $785,000 B).
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Learning Objective 3-7 1) Avalon Event Planning Services Inc. records prepaid expenses and unearned revenues using the alternative treatments. It makes adjusting entries as needed to bring its books to the full accrual basis once a year at the end of the year. On October 1, it paid $3,600 for insurance.
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Learning Objective 4-4 1) GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report. 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.
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Learning Objective 3-3 1) Accrued revenue is the income that has been received but not earned. 2) Prepaid insurance is an asset account and hence it appears on the balance sheet. 3) Prepaid rent is an expense account and hence it appears on the income statement. 4) A contra account's normal balance (debit or.
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11) The Office Supplies account is a temporary account. 12) The Office Supplies Expense account is a temporary account. 13) The Accounts Payable account is a temporary account. 14) The Salaries Payable account is a permanent account. 15) The Common Stock account is a temporary account. 16) The Accumulated Depreciation account is a permanent account. 17).
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48) The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Inc.: Accounts Debit Credit Cash $ 18,000 Accounts Receivable 30,000 Prepaid Insurance 9,000 Office Supplies 3,200 Building 165,000 Accumulated Depreciation—Building $ 12,000 Equipment 88,000 Accumulated Depreciation—Equipment 8,500 Land 45,000 Accounts Payable 12,000 Salaries Payable 2,000 Unearned service revenue 25,000 Mortgage Payable 100,000 Common Stock 21,290 Dividends 25,840 Service Revenue 325,000 Salaries Expense 63,000 Depreciation Expense—Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 _______ Total $505,790 $505,790 Provide the closing entry for expenses. .
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Learning Objective 4-3 1) The adjusting process zeroes out all revenue accounts and all expense accounts. 2) The closing process helps in measuring each period's net income separately from all other periods. 3) Permanent accounts are not closed at the end of the accounting period. 4) As a part of the closing process, revenues.
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21) The Dividends account is a permanent account. 22) The Common Stock account is a permanent account. 23) The beginning balance in the Common Stock account of a company was $10,000. The revenues and expenses were $200,000 and $120,000, respectively. During the year, the company declared and paid dividends for $4,000. The.
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Learning Objective 4-5 1) The steps of the accounting cycle are followed throughout the accounting period. 2) The operating cycle is the process by which companies produce their financial statements for a specific period. 3) In an accounting cycle, an analysis of transactions is performed at the end of each accounting period. 4) The.
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21) Under which of the following categories would Accounts Payable appear? A) long-term assets B) current assets C) long-term liabilities D) current liabilities 22) Which of the following is a plant asset? A) equipment B) patents C) trademark D) Accounts Receivable 23) Notes Payable due within two years are classified as ________. A) current liabilities B) current assets C) long-term liabilities D) long-term assets 24).
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11) An income statement includes ________. A) Land and Salaries Payable B) Common Stock, Retained Earnings, and Dividends C) Furniture and Cash D) Service Revenue and Utilities Expense 12) Property, plant, and equipment are categorized as ________. A) current assets B) fixed assets C) long-term investments D) short-term investments 13) Patents, copyrights, and trademarks are examples of ________. A) short-term investments B).
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Learning Objective 4-1 1) In a balance sheet, assets are classified as either current or long-term depending on their liquidity. 2) Prepaid Rent is always classified as a long-term asset. 3) The operating cycle is the time span required for a business to repay its long-term liabilities. 4) A balance sheet prepared in the.
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21) Which of the following accounts would appear in the income statement debit column? A) Unearned service revenue B) Service Revenue C) Depreciation Expense D) Prepaid Insurance 22) The following is the adjusted trial balance from the worksheet for Tuttle Photography. Tuttle Photography Worksheet For the Year Ended December 31, 2015 AccountsDebitCredit Cash$ 15,000 Accounts Receivable30,000 Prepaid Insurance7,500 Office Supplies3,200 Building160,000 Accumulated Depreciation—Building$ 12,000 Equipment75,000 Accumulated Depreciation—Equipment8,500 Land40,000 Accounts.
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12) The adjusted trial balance of Michael's Shutterbug Photography at December 31, 2015 is as follows: AccountsDebitCredit Cash$ 15,000 Accounts Receivable30,000 Prepaid Insurance7,500 Supplies3,200 Building160,000 Accumulated Depreciation—Building$ 12,000 Equipment75,000 Accumulated Depreciation—Equipment8,500 Land40,000 Accounts Payable12,000 Salaries Payable2,000 Unearned Service Revenue25,000 Mortgage Payable100,000 Common Stock21,290 Dividends23,000 Service Revenue289,000 Salaries Expense61,000 Depreciation Expense—Building and Equipment6,150 Supplies Expense14,040 Insurance Expense14,000 Utilities Expense20,900_______ Total$469,790$469,790 Using the information above, prepare a post-closing trial balance for Shutterbug Photography (dated December 31,.
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11) An entity that buys goods and sells them to customers at a markup is a ________. A) merchandiser B) service provider C) manufacturer D) producer 12) Gross profit is calculated as the difference between net sales revenue and ________. A) purchases B) cost of goods sold C) cost of merchandise inventory D) selling and administrative expenses 13) Best Value.
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11) Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet? A) Rent Revenue B) Insurance Expense C) Salaries Payable D) Equipment 12) Where does Net Income appear on a worksheet? A) Net income appears only in the income statement debit column. B) Net income appears in the balance sheet.
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11) Which of the following accounts does cash basis accounting ignore? A) Payables B) Revenue C) Cash D) Expenses 12) A company receives payment on August 5 for services rendered, two weeks earlier, to one of its customers on account. Which of the following entries would be recorded if the company uses accrual basis accounting? A).
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Learning Objective 4-6 1) The current ratio is calculated using the values from the income statement. 2) The current ratio shows the profitability of a firm. 3) The smaller the current ratio, the higher is the ability of a firm to repay its current debts. 4) A current ratio that has increased from the.
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