ACCT 2301 ch.1-5 quick check

ch.5) The two main inventory accounting systems are the

Perpetual and periodic

ch. 4) Which the following statements concerning reversing entries is true

Reversing entries are most often used with accrual type adjustments

Ch.3 ) Adjusting the accounts is the process of

Updating the accounts at the end of the period

Ch.3 ) the revenue recognition principle requires

revenue to be recorded only after the business has earned it

ch.1) The balance sheet reports

Financial position on a specific date

Ch. 2)Your business purchased office supplies of $2,500 on account. The journal entry to record the transaction is as follows (pg. 88)

Office supplies 2,500 Accounts payable 2,500

ch.1) Assume Global Cleaning Service had a net income of $570 for the year. Global Cleaning Services beginning and ending total assets were $4,520 and $4,180, respectively. Calculate Global Cleaning services return on assets (ROA) for the year.

13.1%

ch. 4) Clean water softener systems as cash of $600, accounts receivable of $900, in office supplies of $400. Clean owes $500 on Accounts Payable and has salaries payable of $200. Cleans current ratio is

2.71

ch.5) Assume Juniper natural dyes may net sales revenue of $90,000 in cost of goods sold totaled $58,000. What was Juniper natural dyes gross profit percentage for this period? ( round your answer to the nearest whole percent.)

36%

Ch. 2) Nathville Laundry reported assets of $800 and equity of $480. What is Nathvilles debt ratio?

40%

ch.5) Which account as a merchandiser use that a service company does not use

All of the above: Costa goods sold, sales revenue, merchandising inventory

ch.1) Accounting is the information system that

All of the above: measures business activities, communicates the results to decision makers, processes information into rerports

ch. 4) What do closing entries accomplish

All of the above: zero out the revenues, expenses, and evidence transfer revenues, expenses, and evidence to the retained earnings account bring the retained earnings account is correct ending balance

Ch.3 ) A & D Window cleaning performed $450 of services but has not yet billed customer for the month.If A & D fails to record the adjusting entry, what is the impact of the financial statements?

Balance sheet: assets understated, equity understated income statement: revenues understated

ch.5) What is the order of the subtitles that appear on a multistep income statement

Gross profit, operating income, total other revenues and expenses, net income

ch.1) Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this transaction affect Global Cleaning Services Accounting equation?

Increase both assets and equity by $180

Ch.3 ) A worksheet

Is an internal document that help summarize data for the preparation of financial statements

ch. 4) Which of the following steps of the accounting cycle was not completed at the end of the period

Journalize transactions as they occur

Ch. 2)Which sequence correctly summarizes the accounting process?

Journalize transactions, post to the accounts, prepare a trial balance

ch.5) The journal entry for the purchase of inventory on account using the perpetual inventory system is

Merchandise inventory xxx accounts payable xxx

ch.1) Consider the overall effects on Global cleaning Service from selling and performing services on account for $6,400 and paying expenses totaling $2,500. What is Global Cleaning Services net income or net loss?

Net income of $3,900

ch.5) The journal entry for the purchase of inventory on account using the periodic inventory system is

Purchases xxx Accounts Payable xxx

Ch.3 ) Which of the following is an example of a deferral (or prepaid) adjusting entry?

Recording the usage of office supplies during the period

Ch.3 ) Get fit now gained a client who prepays $540 for a package of six physical training sessions. Get it now collects the $540 in advance and will provide the training later. After four training sessions, which should get fit in our report on its income statement assuming it uses the accrual basis accounting method?

Service revenue of $360

ch.1) Which type of Business organization is owned by only one owner

Sole Proprietorship

ch.1) Which of the following characteristics best describes a corporation?

Stockholders not personally liable for entity's debts

Ch. 2)Pixel Copies recorded a cash collection on account by debiting cash and crediting accounts payable. What will the trial balance show for this error?

liabilities are overstated

ch. 4) Assets are listed on the balance sheet in the order of their

liquidity

Ch. 2)Posting a $2,500 purchase of office supplies on account appears as follows (pg.89)

office supplies Accounts Payable 2,500 2,500

Ch. 2)The detailed record of the changes in a particular asset, liability, or stockholders equity is called

an account

Ch.3 ) Which of the following is true of accrual basis accounting and cash basis accounting?

Accrual accounting records revenue only when it is earned

ch. 4) Which of the following accounts would be included in the plant assets category of declassified balance sheet

Accumulated depreciation

ch. 4) Which the following accounts is not closed

Accumulated depreciation

ch. 4) Which of the following accounts may appear on a post closing trial balance

Cash, salaries payable, and retained earnings

ch.5) Which of the following accounts would be closed at the end of the year using the perpetual inventory system

Cost of goods sold

ch.1) At the end of a recent year, Global Cleaning Service, a full service house and office cleaning service, had total assets of $3,630 and equity of $2,280. How much were Global Cleaning Services Liabilities?

$1,350

ch.5) Suppose Austin sound had sales of $300,000 and sales returns of $45,000. Cost of goods sold was $152,000. How much gross profit due Austin sound report

$103,000

ch.5) JC Manufacturing purchased inventory for $5300 and also paid a $260 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 2% purchase discount. Assume JC Manufacturing uses a perpetual Inventory system. What is JC Manufacturing's final cost of the inventory that It kept ( round your answer to the nearest whole number.)

$3117

Ch.3 ) The adjusted trial balance shows

Account balances after adjustments

Ch. 2)Sedler properties purchased office supplies on account for $800. Which Journal entry records the payment on account of those office supplies?(pg.89)

Accounts Payable 800 Cash 800

Ch. 2) Which of the following statements is correct?

Accounts payable is increased with a credit

ch.5) Suppose Dave's discounts merchandise inventory account should a balance of $8000 before the year end adjustments. The physical count of goods on hand totaled $7400. Dave uses a perpetual inventory system. To adjusted accounts, which Entry would the company make?

Cost of goods sold 600 Merchandise inventory 600

ch.1) Which of the following requires accounting information to be complete, neutral, and free from material error?

Faithful representation concept

ch.1) Generally Accepted Accounting Principles (GAAP) are currently formulated by the

Financial Accounting Standards Board (FASB)

Ch.3 ) Assume the weekly payroll of in the woods camping supplies is $300. December 31, ended the year, falls on Tuesday, and in the woods will pay its employees on Friday for the full week. What adjusting entry will in the woods make on Tuesday, December 31? ( use five days as a full workweek.)

Salaries expense 120 salaries payable 120

ch. 4) Which of the following is not a closing entry

Salaries payable xxx income summary xxx

Ch.3 ) On February 1, Clovis Wilson law firm contracted to provide $3000 of legal services for the next three months and received $3000 cash from the client. Assuming Wilson records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on February 28?

Service revenue 2000 unearned revenue 2000

ch. 4) Which situation indicated that lost within the income statement section of the worksheet?

Total debits exceed total credits

Ch. 2)Which of the following accounts is a liability

Unearned revenue

Ch. 2)The left side of an account is used to record which of the following?

debits

ch.1) Which of the following is not an external user of a business financial information

employees