Accounting final

You start the week with A/R of $1,200. You sell $400 of goods, all on account. You end the week with A/R of $300. How much did you receive in payments during the week?

$1,300

A customer makes a purchase and pays $40 cash and $60 on account. How much was the purchase?

$100

An employee travels for work in the company car. He uses the company credit card to fill the gas tank. If he travels 1,100 miles in a week, and the car gets 30 miles per gallon, and gas prices average $3.00 per gallon, how much money did he spend on gas during the week (round to nearest dollar)?

$110

Total revenues were $205,000, total expenses, except for wage expense were $50,000, and net income was $45,000. What was the amount of wage expense?

$110,000

Your school paid $1,000 for a five year subscription to an online video service. How much should be expensed via worksheet adjustments each month?

$16.67

Musik Corp. has a total fixed expense for this quarter of $40,000 and wants to earn a profit of $100,000 this quarter. The contribution margin per unit of product sold for $100 is $50. How many units does Musik Corp. need to sell to reach their target profit?

$2,800

You need to make an adjusting entry recognizing the insurance expense for the month. Your annual prepaid premium is $2,400. What should your entry be?

$200

In the trial balance column, a worksheet shows revenue of $478 and expenses of $123, $44, $88. What is the trial balance for net income?

$223

AI Inc. has $100,000 net income in its current year, pays out $6,000 for dividends and has a beginning retained earnings balance of $200,000. What is AI Inc.'s ending retained earnings?

$294,000

Puppy Power Wash purchased a van for $30,000. They believe it will be useful for five years and will be worth $10,000 at the end of the five years. How much will be recorded as a depreciation expense per year of the van's lifespan?

$4,000

A bond is issued when rates are at 5% at $1,000 par value with a 5% coupon. How much cash flow will be generated this year for the bondholder?

$50

An employee failed to see the decimal in $5.87 and entered the transaction as $587.00. By how much will the account balance be off?

$581.13

A T-account has a beginning credit balance of $1,000. New credits are $200 and new debits are twice new credits. What is the new balance?

$800

If a business has $100,000 in sales and $10,000 in wages, $3,000 in advertising, $1,000 in dividends and $3,000 in insurance expense, how much profit did the company make?

$84,000

You have been asked to review journal entries for a large company. You have been given 10 days to do the job and need to assemble your team. You estimate over 15,000 entries need to be checked, and a person on your staff can check about one entry per minute. Assuming an 8 hour work day, how many do you need on your team? (Do not include yourself. You are supervising.)

4

Carpet Corporation has a bond with a par value of $1,000 and wants to convert it to common stock. The conversion price of stock is $25. How many shares of common stock can the bond be converted to?

40 shares

The recording of financial transactions and events manually or electronically is called which of the following?

A and B

Which of the following is where the difference is recorded if a company sells its stock for more than par value?

Additional paid in capital

An account titled Prepaid Rent would be classified as which of the following?

Asset account

The bank listed a $400 deposit as $4,000. Which of the following is how this error would be listed on a bank reconciliation?

Bank error which overstated the balance

The correct order of corporate hierarchy is:

CEO/President, Stockholders, Board of Directors

A petty cash fund was initially established with $200. A gas purchase of $25, a paper purchase of $32 and a miscellaneous expense of $15 were made. What would be the journal entry to replenish the fund?

Debit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15); Credit: Cash ($72)

The bookkeeper recorded a bank deposit at $960, but the bank recorded the deposit at its correct amount of $690. How will this error be treated on the bank reconciliation?

Deduction per book balance of cash

If A represents assets, L represents liabilities, and E represents equity, which of the following is always true?

E = A - L

Which of the following refers to money being exchanged between businesses and customers electronically?

Electronic Funds Transfer

Financial Accounting allows businesses to:

Gather and organize financial transactions to publish for managers

Services rendered for which cash has not yet been received will have what effect on the components of the accounting equation?

Increase in accounts receivable and an increase in equity

The Securities Exchange Commission:

Is a government agency that regulates the trading of stocks, bonds and mutual funds

In a T-Account which side is the debit side?

Left

Accounts payable are considered what type of account?

Liability

Which of the following is a type of payment made to a shareholder during a partial or full liquidation?

Liquidating dividend

Beginning capital was $10,000. Withdrawals were $24,000. The owner made additional investments during the year of $60,000. The ending capital balance was $90,000. What was the net income or net loss for the period?

Net income, $44,000

The difference between net pay and gross pay is:

Net pay has taxes and withholdings removed, gross pay doesn't

Gross margin (gross profit) from sales is the difference between which of the following?

Net sales and the cost of goods sold

the passing of the Sarbanes-Oxley Act

No taxation

Which of the following accounts would be credited to set up a petty cash fund?

Petty cash

Which of the following is a preventative control?

Reconciliations

Which of the following is the most common type of corporation?

S Corporation

The purpose of the Income Statement is to:

Show the profitability of a company during a specific time period

How do you calculate a company's net worth?

Subtract total Liabilities from total Assets

Double taxation is a disadvantage of what form of business?

corporation

Which of the following is not an equity account?

Unearned Revenue

Which is the correct sequence of steps in the accounting cycle?

adjusted trial balance, financial statements, closing entries

Dividends appear on which financial statement?

balance sheet

Which financial statement is created last?

balance sheet

Which of the following refers to the process of verifying the bank statement amounts match company cash amounts?

bank reconciliation

CPA stands for:

certified public accountant

Which class of stock provides voting privileges on board of directors elections and corporate policy?

common stock

Many companies use cloud-based, automated accounting systems to implement the principles of T-accounts. A vendor tries to sell you a subscription at $40 per user per month. You need 3 users to access the system. What will your annual cost be?

d) $1,440

In order to decrease a liability account, the company would:

debit the account

In order to increase an asset account, the company would:

debit the account

A T account:

describes the appearance of the bookkeeping entries.

What are the three categories of costs a company should track to measure how much their product or service costs?

direct labor, direct materials, overhead

Unearned revenue is classified as a:

liability

A janitor cleaning a production facility would be considered:

overhead

_________ is a process of ensuring that two sets of records (usually the balances of two accounts) are in agreement.

reconciliation

Revenue is synonymous with:

sales

An income statement compares:

sales and expenses.

What two forms of businesses have unlimited liability and can be sued personally?

sole proprietorship and partnership

If expenses are greater than sales in a given month this would reflect that:

the company experienced a net loss

The need for more accountants this century was created largely by:

the passing of the Sarbanes-Oxley Act