POA FINAL
A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Total June sales are anticipated to be: a. $63,000. b. $67,500. c. $61,250. d. $74,250. e. $60,000.
a
A company might provide a service or product on credit. "On credit" implies that the cash payment will occur a. on a later date b. on selling day c. on previous day d. No due date e. No ability to collect
a
A company purchased a new truck at a cost of $42,000 on July 1, 2009. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2009? a. $3,250. b. $3,500. c. $4,000. d. $6,500. e. $7,000
a
A company purchased new computers at a cost of $28,000 on June 1, 2010. The computers are estimated to have a useful life of 5 years and have a salvage value of 3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010? a. $5,000 b. $6,000 c. $3,000 d. $5,600 e. $6,500
a
A condition in which a company's expenses exceed its revenues. What does that mean: a. A loss b. A gain c. A profit d. A net income e. A net sale
a
A cost that can be separated into fixed and variable components is called a: a. Mix cost. b. Fixed cost. c. Operating cost. d. Variable cost. e. Product cost
a
A cost that remains the same in total even when volume of activity varies is a: a. Fixed cost. b. Mix - cost c. Variable cost. d. Operating cost e. Financial cost
a
A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n): a. Balance sheet. b. Income statement. c. Statement of cash flows. d. Statement of owner's equity. e. Financial Status Statement.
a
A method of valuing the cost of goods sold that uses the cost of the oldest items ininventory first. What is it? a. FIFO b. LIFO c. Weighted Average d. Specific method e. None of these
a
Accounts receivable refers: a. Money which is owed to a company by a customer for products and services provided on credit b. Money which is owed to a company by a suppliers for products and services provided on credit c. Money which is owed to a company by a bank d. Money which is owed to a company by the investors e. Money which is owed to a company by a customer for products and services provided
a
An example of an operating activity is: a. Paying wages. b. Purchasing office equipment. c. Borrowing money from a bank. d. Buying stock in the security market. e. Paying off a loan.
a
Assets, liabilities, and equity accounts are not closed; these accounts are called: a. Permanent accounts. b. Temporary accounts. c. Balance sheet accounts. d. Profit accounts. e. Loss accounts.
a
Begingning Account receivable of Dell company is $ 4,000. During June, the company completed a word processing assignment for a customer and collected $2,000 cash. Record this transaction: a. Debit Cash $ 2,000and credit Revenue $2,000 b. Credit Cash $ 2,000and Debit Revenue $2,000 c. Debit Cash $ 2,000and Unearned Revenue $2,000 d. Credit Cash $ 4,000 and Debit Unearned Revenue $4,000 e. Debit Account payable $ 1,000 and credit Revenue $5,000
a
Begingning Account receivable of Dell company is $ 5,000. During June, the company completed a word processing assignment for a customer and collected $1,000 cash. Record this transaction: a. Debit Cash $ 1,000 and credit Revenue $1,000 b. Credit Cash $ 1,000 and Debit Revenue $1,000 c. Debit Cash $ 1,000 and Unearned Revenue $1,000 d. Credit Cash $ 5,000 and Debit Unearned Revenue $5,000 e. Debit Account payable $ 5,000 and credit Revenue $5,000
a
Bentels Co. desires a December 31 ending inventory of 2,840 units. Budgeted sales for December are 4,000 units. The November 30 inventory was 1,800 units. Budgeted purchases are: a. 5,040 units. b. 1,240 units. c. 6,840 units. d. 4,000 units. e. 5,800 units
a
Book value is equal to: a. Total asset cost minus depreciation expense b. Total asset cost plus depreciation expense c. Total asset plus depreciation expense d. Total asset minus depreciation expense e. None of these
a
Borrow $ 1,000 loan to pay for new equipment of the company is recored with: a. Debit equipment and credit loan b. Credit equipment and debit loan c. Debit cash and credit loan d. Credit cash and debit loan e. None of these
a
Cooley company has the balance in the accounts payable at the beginning of March was $1,000. During the month of March, Cooley company purchased from Dell company on account totaling $2,000. Also during this month, Cooley company paid $500 on its accounts payable for Dell company. In addition, Cooley company was paid $8,000 by a customer for services to be provided in the future. What is the balance in accounts payable at the end of March? a. $2,500. b. $10,500. c. $8,000 d. $12,500 e. $2,000
a
Costs included in the Merchandise Inventory account can include: a. Invoice price minus any discount, Transportation-in, Storage, Insurance b. Invoice price plus any discount, Transportation-in, Storage, Insurance c. Invoice price minus any discount, Transportation-out, Storage, Insurance d. Invoice price minus any discount, Transportation-in, cost of good sold e. All of these
a
Current assets divided by current liabilities is the: a. Current ratio. b. Quick ratio. c. Debt ratio. d. Liquidity ratio. e. Solvency ratio
a
John, the owner of Matt company, withdrew $8,000 from the business during the current year. The entry to close the withdrawals account at the end of the year, is: a. Debit capital $8,000 and credit withdrawal $ 8,000 b. Debit capital $8,000 and credit cash $ 8,000 c. Debit capital $8,000 and credit expense $ 8,000 d. Debit expense $8,000 and credit income $ 8,000 e. Credit capital $8,000 and debit withdrawl $ 8,000
a
Money expended or cost incurred in a firm's efforts to generate revenue, representing cost of doing business is the definition of the term: a. Expense b. Sale c. Asset d. Liability e. Cost of goods sold
a
Office supplies available at the beginning of the year is Zero. During the year, the company purchased $3000 of office supplies. On December 31, $1000 of office supplies remained. Additional company's insurance expense is $ 1000. How much should the company report as office supplies expense for the year? a. $2000 b. $3000 c. $1000 d. $4000 e. $5000
a
Provide descriptions for this transaction: Debit cash $1,000 and credit owner equity $,1000 a. Investment of cash in business by owner or performed services for cash b. Investment of cash in business by owner c. Performed services for cash d. All of these e. None of these
a
Quick assets divided by current liabilities is the: a. Acid-test ratio. b. Current ratio. c. Current liability turnover ratio. d. Quick asset turnover ratio. e. Solvency ratio
a
Reebok had income of $150 million, sale of $ 1,000 million and average invested assets of $1,800 million. Its return on assets is: a. 8.3%. b. 83.3%. c. 5.5%. d. 55.5%. e. 55%
a
Resources owned or controlled by a company that are expected to yield future benefits are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e. Expenses.
a
The following transactions occurred during Feb: 1. Received $1,000 cash for services provided to a customer during Feb 2. Selling products to a customer on credit, $300 during Feb 3. Received $200 from a customer pay for sales in Jan What was the amount of revenue for Feb? a. $ 1,300 b. $ 1,500 c. $ 200 d. $ 1,200 e. $1,000
a
The insurance were paid on November, 1 and was recorded in the prepaid insurance account before adjustment is $4,800. The insurance is for four months. The adjusting entry required on December 31 is: a. Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400. b. Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400. c. Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200. d. Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200 e. Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.
a
The process of allocating the cost of a fixed asset to expense term is: a. Depreciation b. Recording cost c. Adjusting account d. Closing account e. Benefit recorganization
a
The rate that generates a net present value of zero for an investment is the: a. Internal rate of return. b. Accounting rate of return. c. Net present value rate of return. d. Zero rate of return. e. Payback rate of return
a
The rule that financial statements will be prepare with the assumption that the business will continue operating instead of being closed or sold, is the: a. On - Going-concern principle. b. Accrual basic principle. c. Matching principle. d. Cost Principle. e. Consistency principle.
a
The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the: a. Income Summary account. b. Closing account. c. Balance column account. d. Profit accounts. e. Loss accounts
a
The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries into INCOME SUMMARY Asset : $15,000 Liability: $14,000 Revenue: $ 10,000 Withdrawal: $1,000 a. Debit Revenue: $10,000 Credit Income summary: $10,000 b. Debit Income summary: $10,000 Credit Revenue: $10,000 c. Debit owner capital: $10,000 Credit Revenue: $10,000 d. Debit owner capital: $1,000 Credit Withdrawal: $1,000 e. Debit Withdrawal: $1,000 Credit owner capital: $1,000
a
The useful life of a fixed asset is: a. The length of time it is productively used in a company's operations. b. Never related to its physical life. c. Its productive life, but not to exceed one year. d. Don't need to be determined e. Determined by law.
a
Topflight Company had $1,500 of store supplies at the beginning of the current year. During this year, Topflight purchased $8,250 worth of store supplies. On December 31, $1,125 worth of store supplies remained. Calculate the amount of Topflight Company's store supplies expense for the current year. a. $8,625 b. $8,265 c. $9,625 d. $9,225 e. $9,205
a
What is the transaction of this entry: Debit cash $2,000 and credit owner equity $,2000 a. Investing cash in business by owner or the company performed services for cash b. Investment of cash in business by owner c. The company selling product for cash d. The owner withdrawal e. None of these
a
Which statement is true about unearned revenue a. Unearned revenue is reported in the financial statements as a liability on the balance sheet. b. Unearned revenue is reported in the financial statements as a asset on the balance sheet. c. Unearned revenue is reported in the financial statements as a owner equity on the balance sheet. d. Unearned revenue is reported in the financial statements as unearned revenue on the income statement e. Unearned revenue is reported in the financial statements as revenue on the income statement
a
Which statement is true? a. External users include lenders, customers, and regulators. b. Internal users include lenders, customers, and regulators. c. External users include managers, customers, and regulators. d. External users include lenders, employees, and regulators. e. Internal users include managers, employees, and regulators
a
Which statement is true? a. The Income Summary account is closed to the owner's capital (or owner equity) account b. The Income Summary account is closed to the expense account c. The Income Summary account is closed to the revenue account d. The owner's capital (or owner equity) account is closed to the Income Summary account e. None of these
a
elling products for cash $300 and $700 on credit . Show the general journal entry to record this transaction. a. Debit Cash $ 300 Debit Account Receivable $700 Credit Revenue $1,000 b. Debit Cash $300 Debit Account Payable $700 Credit Revenue $1,000 c. Debit Account Receivable $700 Credit Unearned Revenue $700 d. Debit Unearned Revenue $700 Credit Account Receivable $700 e. Debit Cash $ 700 Credit Revenue $700
a
A cash outflow from the company into its owner is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Profit. e. Investment.
b
A company acquires a building for $75,000 cash. This represents a(n) a. Operating activity. b. Investing activity. c. Financing activity. d. Revenue activity. e. Expense activity.
b
A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold? a. $395. b. $410. c. $450. d. $510. e. $520.
b
A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold? a. $120. b. $124. c. $128 d. $130. e. $140.
b
A company has sales of $350,000, Account Receivable of 50,000 and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debts expense is a. $350 b. $2,450. c. $3,450. d. $300 e. $530
b
A company might buy a service or product on credit. "On credit" implies that the cash payment will occur a. On buying day b. on a later date c. on previous day d. No due date e. No obligation to pay
b
A company purchased new computers at a cost of $14,000 on October 1, 2010. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010? a. $250 b. $750 c. $875 d. $1,000 e. $3,000
b
A company sell its inventory. This represents a(n): a. Revenue activity. b. Operating activity. c. Expense activity. d. Investing activity. e. Financing activity
b
A company sold out its products of $20,000. This represents a(n): a. Revenue activity. b. Operating activity. c. Expense activity. d. Investing activity. e. Financing activity.
b
A method of valuing inventory in which the items acquired last are treated as theones sold first. What is it? a. FIFO b. LIFO c. Weighted Average d. Specific method e. None of these
b
An account used to record the owner's investments in the business is called a(n): a. Withdrawals account. b. Capital account. c. Revenue account. d. Expense account. e. Liability account
b
An example of a financing activity is: a. Buying office supplies. b. Obtaining a long-term loan. c. Buying office equipment. d. Selling inventory. e. Buying land.
b
An example of a financing activity is: a. Buying raw material. b. Obtaining a short term loan. c. Pay office rent. d. Selling inventory. e. Buying land.
b
Assets created by selling goods and services on credit are: a. Accounts payable. b. Accounts receivable.c. Liabilities. d. Expenses. e. Equity
b
At the beginning of January of the current year, Thomas Law company has a normal balance of $50,000 for accounts receivable. During January, the company collected $14,000 from customers and provided additional services to customers on account totaling $12,000. Additional, company used service of $ 1,000 on credit. At the end of January, the balance in the accounts receivable account should be: a. $49,000. b. $48,000. c. $36,000 d. $26,000 e. $76,000
b
If assets are $99,000 and liabilities are $32,000, then equity equals a. $32,000. b. $67,000. c. $99,000. d. $131,000. e. $198,000.
b
Internal users of accounting information include: a. Shareholders. b. Managers. c. Lenders. d. Suppliers. e. Customers.
b
Items used in business operations, such as office pens and paper are several samples of: a. Office expense b. Office supplies c. Office equipment d. Prepayment e. None of these
b
J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year, is: a. Debit withdrawal 8,700 and credit cash $ 8,700 b. Debit capital $8,700 and credit withdrawal $ 8,700 c. Debit capital $8,700 and credit expense $ 8,700 d. Debit expense $8,700 and credit income $ 8,700 e. Credit capital $8,700 and debit withdrawal $ 8,700
b
NPV is: a. The present value of future net cash flows plus the initial investment. b. The present value of future net cash flows minus the initial investment. c. The present value of future net cash flows divides the initial investment. d. The present value of future net cash flows minus the average operating expense e. None of these
b
Net SALE divided by average total assets is: a. Profit margin. b. Total asset turnover. c. Return on total assets. d. Current ratio. e. Acid - test - ratio
b
Net income divided by net sales is the: a. Return on total assets. b. Profit margin. c. Current ratio. d. Total asset turnover. e. Days' sales in inventory.
b
Net income is: a. Assets minus liabilities. b. The excess of revenues over expenses. c. An asset. d. The same as revenue. e. The excess of expenses over equity
b
Net sales divided by average total assets is the a. Profit margin. b. Total asset turnover. c. Current ratio. d. Return on total assset e. None of these
b
Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: a. Borrow $ 4,500. b. Borrow $ 2,500. c. Borrow $10,000. d. Repay $ 7,500. e. Repay $ 2,500
b
On June 30, 2009, Apricot Co. paid $7,500 cash for a services that will be performed during two-year period. On June 30, 2009 Apricot should record: a. A credit to an expense for $7,500 and debitt cash $ 7,500 b. A debit to a prepaid expense for $7,500 and credit cash $ 7,500 c. A debit to a prepaid expense for $7,500 and credit account payable $ 7,500 d. A credit to a prepaid expense for $7,500 and debit cash $ 7,500 e. A debit to expense for $7,500 and credit cash $ 7,500
b
On June, 1 , the company paid $500 cash for an insurance premium covering the next 12 months. Prepare journal entries to record the above transactions on On June, 1. a. Debit Cash $500 Credit Insurance expense $500 b. Debit Prepaid insurance $500 Credit Cash $500 c. Debit Cash $500 Credit Prepaid insurance $500 d. Debit Insurance expense $500 Credit Cash $500 e. Debit Cash $500 Credit Unearned revenue $500
b
Part of the firm's profit that distributed to its stockholders (shareholders)according to the number and class of stock (shares) held by them a. Share b. Dividend c. Equity d. Net income e. None of these
b
Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? a. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase. b. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect. c. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect. d. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase. e. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.
b
Provide descriptions for this transaction: Debit cash $ 5,000 and Credit Account Receivable $5,000 a. Buying on credit. b. Received cash for an account receivable. c. Buying for cash. d. Selling for cash. e. Selling on credit.
b
Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are: a. Permanent accounts. b. Temporary accounts. c. Balance sheet accounts. d. Profit accounts. e. Loss accounts.
b
Something of value that cannot be physically touched, such as a brand, franchise,trademark, or patent is the definition of: a. Tangible assets b. Intangible assets c. Fixed assets d. Curent assets e. Non - curent assets
b
The account used to record the transfers of assets from a business to its owner (personal use) is: a. A revenue account. b. The owner's withdrawals account. c. The owner's capital account. d. An expense account. e. A liability account.
b
The accounting principle that requires accounting information to be based on actual cost and, is the: a. Accounting equation. b. Cost principle. c. On - Going-concern principle. d. Accrual principle. e. Consistency principle
b
The company buys a new car for personal use is record with below entry: a. Debit cash and credit withdrawal b. Credit cash and debit withdrawal c. Credit account payable ad debit withdrawal d. Credit cash and debit expense e. None of these
b
The company has $500 office supplies available at the beginning of the year. During the year, the company purchased $600 of office supplies by cash. On December 31, there are $400 of office supplies remained. How much should the company report as office supplies expense for the year? a. $600 b. $700 c. $400 d. $300 e. $500
b
The company has no office supplies available at the beginning of the year. During the year, the company purchased $500 of office supplies on credit. On December 31, there are $100 of office supplies remained. How much should the company report as office supplies expense for the year? a. $600 b. $400 c. $100 d. $300 e. $500
b
The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: a. Income statement equation. b. Accounting equation. c. Business equation. d. Transaction equation. e. Net income.
b
The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment from the owner 3. Received $750 from a customer pay for sales in June. 4. Provided services to a customer on credit, $375. 5. Borrowed $6,000 from the bank What was the amount of revenue for July? a. $ 900. b. $ 1,275. c. $ 2,525. d. $ 3,275. e. $11,100.
b
The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries into INCOME SUMMARY Asset : $15,000 Liability: $14,000 Expense: $ 8,000 Withdrawal: $1,000 a. Debit Expense: $8,000 Credit Income summary: $8,000 b. Credit Expense: $8,000 Debit Income summary: $8,000 c. Credit withdrawal: $1,000 Debit Income summary: $1,000 d. Credit Asset: $15,000 Debit Income summary: $15,000 e. Debit owner capital: $1,000 Credit Withdrawal: $1,000
b
Unearned revenue is reported in the financial statements as: a. A revenue on the balance sheet. b. A liability on the balance sheet. c. An unearned revenue on the income statement. d. An asset on the balance sheet. e. An operating activity on the statement of cash flows.
b
What is the transaction of this entry Debit expense $2,000 and Credit supplies $2,000 a. Purchased supplies by cash b. Used supplies c. Counted supplies d. Purchased supplies on credit e. None of these
b
Which accounts don't need to do closing entries? a. Revenue b. Non - current asset c. Income Summary d. Withdrawals e. Expense
b
Which activities that deals with the acquiring and selling of resources that an organization uses to produce products or services such as acquire machine, office building ... a. Operating activities b. Investing activities c. Financing activities d. Financing activities and Investing activities e. Financing activities and Operating activities
b
Which is the process that resets revenue, expense and withdrawal account balances to zero at the end of the period a. Adjusting account b. Closing process c. Recording transaction d. Prepare trial balance e. Prepare financial statement
b
Which one of the following methods considers the time value of money in evaluating alternative capital expenditures? a. Accounting rate of return. b. Net present value. c. Payback period. d. Cash flow method. e. Return on average investment.
b
Which statement is true about prepaid expense: a. Prepaid expense is reported in the financial statements as a liability on the balance sheet. b. Prepaid expense is reported in the financial statements as a asset on the balance sheet. c. Prepaid expense is reported in the financial statements as a owner equity on the balance sheet. d. Prepaid expense is reported in the financial statements on the income statement e. Prepaid expense is reported in the financial statements on the cash flow statement
b
Which statement is true? a. An disadvantage of discounted method over the payback period method is that it recognizes the time value of money. b. An advantage of discounted method over the payback period method is that it recognizes the time value of money. c. An advantage of discounted method over the payback period method is that it recognizes the cost of borrowing. d. An disadvantage of discounted method over the payback period method is that it recognizes the trend of interest. e. An advantage of discounted method over the payback period method is that it recognizes the trend of interest.
b
Which statement is true? a. Income summary and withdrawals accounts are permanent accounts and should be closed at the end of the accounting period. b. Income summary and withdrawals accounts are temporary accounts and should be closed at the end of the accounting period. c. Income summary and withdrawals accounts are temporary accounts and don't need to be closed at the end of the accounting period. d. Income summary and Liability accounts are temporary accounts and should be closed at the end of the accounting period. e. Income summary and asset accounts are temporary accounts and should be closed at the end of the accounting period.
b
Which statement is true? a. Tangible assets are assets held for sale. b. Tangible assets are assets held for operating activity of the company c. Tangible assets are assets acquired by loan d. Tangible assets are assets never reduce value e. Tangible assets are assets increase value over the time
b
Which statement is true? a. The Income Summary account is closed to the expense account b. The Revenue account is closed to the income summary account c. The Income Summary account is closed to the revenue account d. The owner's capital (or owner equity) account is closed to the Income Summary account e. None of these
b
Which statement is true? a. The payback period (PB) and the accounting rate of return (ARR) methods of evaluating investments considers the time value of money. b. The discounted payback period (DPB) and the internal rate of return (IRR) methods of evaluating investments considers the time value of money. c. The payback period (PB) and NPV methods of evaluating investments considers thetime value of money. d. The accounting rate of return (ARR ) and the NPV methods of evaluating investments considers the time value of money. e. The accounting rate of return (ARR) and the discounted payback period (DPB) methods of evaluating investments considers the time value of money.
b
Which statement is true? a. Total asset cost plus depreciation expense equals book value. b. Total asset cost minus depreciation expense equals book value. c. Total asset plus depreciation expense equals book value. d. Total asset minus depreciation expense equals book value. e. None of these.
b
dividends per share of $0.40. Its price-earnings ratio equals: a. 3.1 b. 30.0 c. 93.8 d. 32.0 e. 3.3
b
he process of converting future cash flows in today's dollars is known as: a. Budgeting. b. Discounting. c. Payback period. d. Investing. e. costing
b
nvested $10,000 cash, and $15,000 of computer equipment. Prepare journal entries to record the above transactions a. Debit Cash $ 25,000 Credit Capital $25,000 b. Debit Cash $ 10,000 Debit Equipment $ 15,000 Credit Capital $25,000 c. Credit Cash $ 10,000 Credit Equipment $ 15,000 Debit Capital $25,000 d. Credit Cash $ 25,000 Debit Capital $25,000 e. Debit Cash $ 10,000 Credit Capital $10,000
b
A balance sheet lists: a. The types and amounts of the revenues and expenses of a business. b. Only the information about what happened to equity during a time period. c. The types and amounts of assets, liabilities, and equity of a business as of a specific date. d. The inflows and outflows of cash during the period. e. The assets and liabilities of a company but not the owner's equity.
c
A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 of office supplies. On December 31, $75 of office supplies remained. How much should the company report as office supplies expense for the year? a. $75. b. $125. c. $175. d. $250. e. $325.
c
A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? a. $17,000. b. $29,000. c. $71,000. d. $75,000. e. $105,000
c
A company's net income was $ 20,000 and the cost of goods sold was $16,000. Its average merchandise inventory was $4,000. Its inventory turnover equals a. 0.4 b. 5 c. 4 d. 0.5 e. 4.5
c
A department store has budgeted sales of 12,000 men's suits in September. Management wants to have 6,000 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,000 suits. What is the dollar amount of the purchase of suits? Each suit has a cost of $75. a. $ 750,000. b. $ 900,000. c. $1,050,000. d. $1,200,000. e. $1,350,000.
c
A measure of a company's profitability, equal to earnings divided by its total assets is about: a. ROE b. Asset turnover c. ROA d. Profit margin e. None of these
c
Accounts receivable that may become uncollectable and will be written off , is known as: a. Expense b. Account receivable c. Bad debts d. Debts e. Uncollcetable account
c
Acme-Jones Corporation uses a weighted-average inventory system. August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. August 29, 12 units were sold. What was the amount of the cost of goods sold for this sale? a. $148.00. b. $150.50. c. $158.40. d. $210.00. e. $330.00.
c
An estimate of an asset's value at the end of its benefit period is called: a. Asset at cost b. Book value c. Salvage value d. Depreciation expense e. expense
c
An example of an investing activity is: a. Paying wages of employees. b. Withdrawals by the owner. c. Purchase of land. d. Selling inventory. e. Purchase of raw material.
c
Depreciation: a. Measures the decline in market value of an asset. b. Measures physical deterioration of an asset. c. Is the process of allocating to expense the cost of a fixed asset. d. Is an outflow of cash from the use of a fixed asset. e. Is applied to land.
c
Net income divided by average total assets is: a. Profit margin. b. Total asset turnover. c. Return on total assets - ROA. d. Current ratio. e. Return on equity - ROE.
c
Nike had income of $350 million, sale of $ 1,000 million and average invested assets of $2,000 million. Its ROA is: a. 1.8%. b. 5%. c. 17.5%. d. 50%. e. 0.5%.
c
Office supplies available at the beginning of the year is Zero. During the year, the company purchased $250 of office supplies. On December 31, $75 of office supplies remained. How much should the company report as office supplies expense for the year? a. $75. b. $125. c. $175. d. $250. e. $325.
c
Ownership in a company in the form of common stock or preferred stock is: a. liability b. asset c. equity d. debt e. withdrawal
c
Provide descriptions for this transaction: Debit supplies $1,000 and Credit Account Payable $1,000 a. Used supplies. b. Purchased supplies . c. Purchased supplies on credit. d. Counted supplies . e. Transfer supplies into inventory.
c
The business completed these transactions: 1. Investing $20,000 cash and a building valued at $100,000. 2. Purchased $10,000 of a van on credit. 3. Paid $20,000 cash for raw material. 4. Selling products and collected a $40,000. What was the balance of the cash account after these transactions were posted? a. $130,000 b. $30,000 c. $40,000 d. $140,000 e. $120,000
c
The difference between a company's assets and its liabilities is: a. Net income. b. Expense. c. Equity. d. Revenue. e. Net loss
c
The ratio that reflects ability to pay financial cost includes the: a. Acid-test ratio. b. Current ratio. c. Times interest earned ratio. d. Total asset turnover. e. Days' sales in inventory
c
The right side of a T-account is a(n): a. Debit. b. Increase. c. Credit. d. Decrease. e. Account balance
c
When preparing the cash budget, all the following should be considered except: a. Cash receipts from customers. b. Cash payments for merchandise. c. Depreciation expense. d. Cash payments operating expense. e. Cash payments for capital expenditures
c
Which accounts are amounts owed to suppliers for products or services purchased on credit? a. Unearned revenue b. Trade account receivable c. Trade accounts payable d. Revenue e. prepayment
c
Which accounts belong to Permanent Accounts ? a. Revenue, asset, liability b. Revenue, expense, income summary c. Asset, liability, owner capital d. Revenue, expense, withdrawal e. Asset, liability, revenue
c
Which accounts don't need to do closing entries? a. Revenue b. Income Summary c. Current Liability d. Withdrawals e. Expense
c
Which accounts don't need to do closing entries? a. Revenue b. Income Summary c. Intangible asset d. Withdrawals e. Expense
c
Which accounts don't need to do closing entries? a. Revenue b. Income Summary c. Non - current Liability d. Withdrawals e. Expense
c
Which of the following assets is not depreciated? a. Vehicle b. Machine c. Land d. Buildings e. All of these are depreciated
c
Which of the following would not be used in preparing a cash budget for October? a. Beginning cash balance on October 1. b. Budgeted sales and collections for October. c. Estimated depreciation expense for October. d. Budgeted salaries expense for October. e. Budgeted capital equipment purchases for October.
c
Which statement is true? a. Revenue and expense accounts are permanent accounts and should be closed at the end of the accounting period. b. Revenue and withdrawal accounts are temporary accounts and should be closed at the end of the accounting period. c. Revenue and expense accounts are temporary accounts and should be closed at the end of the accounting period. d. Revenue and asset accounts are temporary accounts and should be closed at the end of the accounting period. e. Liability and asset accounts are temporary accounts and should be closed at the end of the accounting period.
c
Which statement is true? a. Salvage value is an historycal cost of an assset b. Salvage value is the same as book value c. Salvage value is an estimate of an asset's value at the end of its benefit period d. Salvage value is an estimate of an asset's value at the beginning of its benefit period e. Salvage value is an estimate of an asset's value at the end of its benefit period that never changes
c
Zed Bennett opened an art gallery and as a dealer completed these transactions: 1. Started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000. 2. Purchased $70 of office supplies on credit. 3. Paid $1,200 cash for the receptionist's salary. 4. Sold a painting for an artist and collected a $4,500 cash commission. What was the balance of the cash account after these transactions were posted? a. $12,230. b. $12,430. c. $43,300. d. $43,430. e. $61,430.
c
A company buy bond in the stock market. This represents a(n): a. Revenue activity. b. Operating activity. c. Expense activity. d. Investing activity. e. Financing activity.
d
A company had a market price of $42. Per-share, earnings per share of $3, and dividends per share of $2. Its price-earnings ratio equals; a. 0.21 b. 42 c. 21 d. 14 e. 0.14
d
A company purchased a plant asset for $45,000. The asset has an estimated salvage value of $6,000, and an estimated useful life of 10 years. The annual depreciation expense using the straight-line method is a. $3,000 per year. b. $9,300 per year. c. $3,600 per year. d. $3,900 per year. e. $4,500 per year
d
A company's sale was $ 20,000 and the cost of goods sold was $15,500. Its average merchandise inventory was $4,500. Its inventory turnover equals a. 0.34 b. 0.44 c. 4.4 d. 3.4 e. 30.4
d
A cost that changes when having changes in volume of activity is a(n): a. Mix cost. b. Fixed cost. c. Operating cost. d. Variable cost. e. Product cost.
d
A debit is: a. An increase in an account. b. The right-hand side of a T-account. c. A decrease in an account. d. The left-hand side of a T-account. e. An increase to a liability account.
d
A written report which quantitatively describes the financial health of a company is about: a. None of these b. Accounting equation c. Trial balanced. Financial statements e. Transactions
d
Calculated as sales minus all costs directly related to those sales is the definination of: a. Cost of goods sold b. Expense c. Revenue d. Gross profit e. Profit
d
Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is: a. $223,000. b. $240,000. c. $268,000. d. $274,000. e. $208,000.
d
How does Lead Company record by the billing of a client for $15,000 of service completed? a. +$15,000 accounts receivable, -$15,000 accounts payable. b. +$15,000 accounts receivable, +$15,000 accounts payable. c. +$15,000 accounts receivable, +$15,000 cash. d. +$15,000 accounts receivable, +$15,000 revenue. e. +$15,000 accounts receivable, -$15,000 revenue.
d
How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? a. +$10,000 accounts receivable, -$10,000 accounts payable. b. +$10,000 accounts receivable, +$10,000 accounts payable. c. +$10,000 accounts receivable, +$10,000 cash. d. +$10,000 accounts receivable, +$10,000 revenue. e. +$10,000 accounts receivable, -$10,000 revenue.
d
If Jones, the owner of Hardware company, uses cash of the business to purchase a family car, the business should record this use of cash with an entry to: a. Debit Expense and credit Cash. b. Credit Expense and Debit Cash. c. Debit Cash and credit Withdrawals. d. Debit Withdrawals and credit Cash. e. Debit car and credit Cash.
d
If Smith, the owner of a restaurant, uses cash of the business to pay for renting his house, the business should record this use of cash with an entry to: a. Debit Expense and credit Cash. b. Credit Expense and Debit Cash. c. Debit Cash and credit Withdrawals. d. Debit Withdrawals and credit Cash. e. Debit car and credit Cash
d
If equity is $300,000 and liabilities are $192,000, then assets equal: a. $108,000. b. $192,000. c. $300,000. d. $492,000. e. $792,000
d
Moffat Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. What is the entry need to record when Moffat Company bill of a client for $25,000 of contract completed? a. +$25,000 accounts receivable, -$25,000 accounts payable. b. +$25,000 accounts receivable, +$25,000 accounts payable. c. +$25,000 accounts receivable, +$25,000 cash. d. +$25,000 accounts receivable, +$25,000 revenue. e. +$25,000 accounts receivable, -$25,000 revenue.
d
Money which a company owes to vendors for products and services purchased oncredit. This item appears on the company's balance sheet as a current liability. a. Prepayment b. Accout receivable c. Assetd. Account payable e. Cost of goods sold
d
Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $3,500, the amount of monthly depreciation expense Nelson should recognize is: a. $2,400 b. $ 200 c. $4,800 d. $ 400 e. $ 450
d
On June, 1 , the company paid $12,000 cash for an insurance premium covering the next 12 months. Prepare adjusting journal entries to record on December, 31. a. Debit Cash $6,000 Credit Insurance expense $6,000 b. Debit Prepaid insurance $6,000 Credit Cash $6,000 c. Debit Cash $6,000 Credit Prepaid insurance $6,000 d. Debit Insurance expense $6,000 Credit prepaid insurance expense $6,000 e. Debit Cash $6,000 Credit Unearned revenue $6,000
d
Provide descriptions for this transaction: Credit cash and debit owner equity a. None of these b. Paid expense of business c. Withdrawal of cash from business by owner for personal use d. Withdrawal of cash from business by owner for personal use or paid expense of business e. Invessting by onwner by cash
d
Repayment of the loan for the bank $ 2,000 cash a. Debit cash, credit Expense b. Credit cash , debit expense c. Debit cash, credit loan d. Credit cash, debit loan e. None of these
d
Revenues are: a. The same as net income. b. The excess of expenses over assets. c. Resources owned or controlled by a company. d. Company's earning activities that contribute to increase owner equity . e. The costs of assets or services used.
d
Textron Stores purchased a van that cost $35,000. The firm made a payment of $5,000 cash and the balance on credit. Show the general journal entry to record this transaction. a. Debit Cash $5,000 Debit Account payable $30,000 Credit Van $35,000 b. Debit Cash $5,000 Debit Account payable $30,000 Credit van $ 35,000 c. Debit Van $ 5,000 Credit Cash $5,000 d. Debit Van $35,000 Credit Cash $5,000 Credit Account payable $30,000 e. Debit Van $30,000 Credit Account payable $30,000
d
The current ratio: a. Is used to measure a company's profitability. b. Is used to measure the relation between assets and long-term debt. c. Measures the effect of operating income on profit. d. Is used to help evaluate a company's ability to pay its debts in the near future. e. Is calculated by dividing current assets by equity.
d
The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: a. A Balance sheet.b. A Statement of owner's equity. c. A Statement of cash flows. d. An Income statement. e. A Statement of financial position
d
The following transactions occurred during March: 1. Received $1,000 cash for services provided to a customer during March 2. Selling products to a customer on credit, $600 during March 3. Received $200 from a customer pay for sales in Feb 4. Get fun from the state bank of $ 700 cash What was the amount of revenue for March? a. $ 1,300 b. $ 2,500 c. $ 1,800 d. $ 1,600 e. $1,700
d
The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the: a. Weighted average inventory method. b. First-in, first-out method. c. Last-in, first-out method. d. Specific identification method. e. Retail inventory method.
d
The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries into OWNER CAPITAL Asset : $15,000 Liability: $14,000 Withdrawal: $1,000 a. Debit Withdrawal: $1,000 Credit Owner Capital: $1,000 b. Debit expense: $1,000 Credit Owner Capital: $1,000 c. Debit Owner Capital: $1,000 Credit expense: $1,000 d. Debit Owner Capital: $1,000 Credit Withdrawal: $1,000 e. Debit income summary: $1,000 Credit Withdrawal: $1,000
d
Western Company had $500 of store supplies available at the beginning of the current year. During the year Western Company purchased $2,750 worth of store supplies. On December 31 of this year $375 worth of store supplies remained. Calculate the amount of Western Company's store supplies expense for the current year, the answer is a. $375 b. $2,750 c. $500 d. $2,875 e. $1,875
d
What is the name of the term that is discribeled as: Value of materials and goods held by a firm (1) to support production (raw materials, work in process), (2) for support activities (repair, maintenance), or (3)for sale or customer service (merchandise, finished goods) a. Cost of good sold b. Raw material c. Finished goods d. Inventory e. Merchandise
d
Which accounts belong to Temporary Accounts ? a. Asset, liability, withdrawal, income summary b. Revenue, asset, withdrawal, income summary c. Revenue, expense, liability, income summary d. Revenue, expense, withdrawal, income summary e. Revenue, expense, withdrawal, asset
d
Which accounts don't need to do closing entries? a. Revenue b. Income Summary c. Withdrawals d. Gross profit e. Expense
d
Which statement is true about revenue: a. Revenue is reported in the financial statements as a liability on the balance sheet. b. Revenue is reported in the financial statements as a asset on the balance sheet. c. Revenue is reported in the financial statements as a owner equity on the balance sheet. d. Revenue is reported in the financial statements on the income statement. e. Revenue is reported in the financial statements on the cash flow statement
d
Which statement is true? a. A net profit occurs when revenues exceed liabilities b. A net profit occurs when revenues exceed assets c. A net profit occurs when revenues is equal to expenses. d. A net profit occurs when revenues exceed expenses. e. A net profit occurs when revenues exceed equity
d
Which statement is true? a. Assets need to depreciatte include vehicle, machine, land, buildings b. Assets need to depreciatte include van, machine, land, buildings c. Assets need to depreciatte include machine, land, buildings d. Assets need to depreciatte include vehicle, machine, buildings e. Assets need to depreciatte include vehicle, land, buildings
d
Which statement is true? a. Current liabilities include accounts receivable, unearned revenues, and salaries payable. b. Current liabilities include prepayment, unearned revenues, and salaries payable. c. Current liabilities include revenue, unearned revenues, and salaries payable. d. Current liabilities include accounts payable, unearned revenues, and salaries payable. e. Current liabilities include expense, unearned revenues, and salaries payable.
d
A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n): a. Revenue activity. b. Operating activity. c. Expense activity. d. Investing activity. e. Financing activity.
e
A company had a market price of $30. Per-share, earnings per share of $1, and dividends per share of $0.5. Its price-earnings ratio equals: a. 30 b. 15 c. 60 d. 0.3 e. 0.15
e
A company pay off its long term loan of $10,000 for the bank. This representsa(n): a. Revenue activity. b. Operating activity. c. Expense activity. d. Investing activity. e. Financing activity.
e
Accounting is an information and measurement system that: a. Identifies business activities. b. Records business activities. c. Communicates business activities. d. Helps people make better decisions. e. All of these.
e
Accounting refers to: a. Is an information and measurement system. b. Identifies, records, and communicates information about business activities. c. Helps people make better decisions. d. Involves interpreting information and designing information systems to provide useful reports that monitor and control a company's activities. e. All of these
e
Capital budgeting decisions are risky because: a. The outcome is uncertain. b. Large amounts of money are usually involved. c. The investment involves a long-term commitment. d. The decision could be difficult or impossible to reverse. e. All of these are true
e
Costs included in the Merchandise Inventory account can include: a. Invoice price minus any discount. b. Transportation-in. c. Storage. d. Insurance. e. All of these
e
Expenses are: a. The same as net income. b. The excess of expenses over assets. c. Resources owned or controlled by a company. d. Company's earning activities that contribute to increase owner equity . e. The costs of assets or services used to generate revenue.
e
External users of accounting information include: a. Shareholders. b. Customers. c. Creditors. d. Government regulators. e. All of these.
e
If Hussan, the owner of Hardware company, uses cash of the business to purchase a motocylce for his travelling, the business should record this use of cash with an entry to: a. Debit Expense and credit Cash. b. Credit Expense and Debit Cash. c. Debit Cash and credit Withdrawals. d. Debit motocylce and credit Cash. e. Debit Withdrawals and credit Cash.
e
John set up a new business and completed these transactions: 1. Open new restaurant, by investing $30,000 cash and equipment valued at $10,000 2. Purchased $1,000 of kitchen utility on credit. 3. Paid $1,500 cash for the staff 's salary. 4. Service meals to customers and collected a $4,000 What was the balance of the cash account after these transactions were posted? a. $46,500 b. $42,500 c. $45,500 d. $31,500 e. $32,500
e
Moffic Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys raw material on credit for $25,000. What would be the effects of this transaction on the accounting equation? a. Assets increase by $25,000 and expenses increase by $25,000. b. Assets increase by $25,000 and expenses decrease by $25,000. c. Liabilities increase by $350,000 and expenses decrease by $350,000. d. Assets decrease by $25,000 and expenses decrease by $25,000. e. Assets increase by $25,000 and liabilities increase by $25,000.
e
On October, 1 , the company paid $12,000 cash for an insurance premium covering the next 6 months. Prepare adjusting journal entries to record on December, 31. a. Debit Cash $6,000 Credit Insurance expense $6,000 b. Debit Cash $6,000 Credit Prepaid insurance $6,000 c. Debit Prepaid insurance $6,000 Credit Cash $6,000 d. Debit Cash $6,000 Credit Unearned revenue $6,000 e. Debit Insurance expense $6,000 Credit prepaid insurance expense $6,000
e
One June 1, 2010, The company paid $1,000 cash for the loan owing the bank before a. Debit cash and credit loan b. Credit cash and debit loan c. Debit account payable and credit loan d. Credit account payable and debit loan e. None of these
e
Profits generated by a firm that are not distributed to stockholders (shareholders) as dividends but are reinvested in the business is: a. Share b. Dividend c. Equity d. Net income e. Retain earning
e
Provide descriptions for this transaction: Credit cash $ 2,000 and Debit Account Payable $ 2,000 a. Buying for cash. b. Selling for cash. c. Selling on credit. d. Buying on credit. e. Paid accounts payable.
e
Provide descriptions for this transaction: Credit supplies $ 2,000 and Debit expense $ 2,000 a. None of these b. Selling supplies on credit worth of $2,000 c. Buying supplies for cash worth of $ 2,000 d. Buying supplies on credit worth of $ 2,000 e. Used supplies in business worth of $ 2,000
e
Return on total assets is calculated as follow: a. Net sale divided by average total assets b. Net income divided by total current assets c. Net income divided by total non-current assets d. Net sale divided by average total debts e. Net income divided by average total assets
e
Selling 1,000 products for a customer and collected $2,000 cash a. Debit Cash $ 1,000 and credit Revenue $1,000 b. Credit Cash $ 2,000 and Debit Revenue $2,000 c. Debit Cash $2,000 and Unearned Revenue $2,000 d. Credit Cash $ 2,000 and Debit Unearned Revenue $2,000 e. Debit Cash $ 2,000 and credit Revenue $2,000
e
Tangible assets include: a. Land. b. Equipment. c. Buildings. d. Machinery. e. All of these.
e
The basic financial statements include the: a. Balance Sheet. b. Income Statement. c. Statement of Owner's Equity. d. Statement of Cash Flows e. All of these
e
The company has $100 office supplies available at the beginning of the year. During the year, the company purchased $500 of office supplies on credit. On December 31, there are $100 of office supplies remained. How much should the company report as office supplies expense for the year? a. $600 b. $400 c. $100 d. $300 e. $500
e
The current ratio: a. Is calculated by dividing current assets by current liabilities. b. Helps to assess a company's ability to pay its debts in the near future. c. Can reveal problems in a company if it is less than 1. d. Can affect a creditor's decision about whether to lend money to a company. e. All of these.
e
The operating functions of a business include: a. Research and development. b. Purchasing. c. Marketing. d. Distribution. e. All of these.
e
The potential benefits of one alternative that are lost by choosing another is known as a(n): a. Sunk cost. b. Production cost. c. Fixed cost. d. Variable cost. e. Opportunity cost.
e
The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries into INCOME SUMMARY Asset : $10,000 Revenue: $ 15,000 Unearned revenu: $1,000 a. Debit unearned Revenue: $1,000 Credit Income summary: $1,000 b. Credit unearned Revenue: $1,000 Debit Income summary: $1,000 c. Credit Revenue: $15,000 Debit Income summary: $15,000 d. Debit owner capital: $10,000 Credit Withdrawal: $10,000 e. Debit Revenue: $15,000 Credit Income summary: $15,000
e
The value of an asset as it appears on a balance sheet, equal to cost minusaccumulated depreciation is definition of: a. Depreciation cost b. Asset at cost c. Accumulated depreciation d. Depreciation expense e. Book value
e
Which accounts don't need to do closing entries? a. Revenue b. Expense c. Income Summary d. Withdrawals e. Current asset
e
Which accounts need to do closing entries? a. Close Revenue accounts to Income Summary b. Close Expense accounts to Income Summary c. Close Income Summary account to Owner's Capital. d. Close Withdrawals account to Owner's Capital e. All of these
e
Which item in owner equity that represents costs used to earn revenues : a. Contributed Capital . b. Revenue. c. Withdrawals. d. Expenses. e. None of these
e
Which of the following must be completed before a cash budget can be prepared? a. Capital expenditures budget. b. Sales budget. c. Merchandise purchases budget. d. General and administrative expense budget. e. All of these.
e
Which statement is true? a. The cost of an inventory item includes its invoice cost plus any discount, and plus any added costs necessary to put it in a place and condition for sale. b. The cost of an inventory item includes its invoice cost plus any discount, and minus any added costs necessary to put it in a place and condition for sale. c. The cost of an inventory item includes its invoice cost minus any discount, and minus any added costs necessary to put it in a place and condition for sale. d. The cost of an inventory item includes its invoice cost minus any discount e. The cost of an inventory item includes its invoice cost minus any discount, and plus any added costs necessary to put it in a place and condition for sale.
e
Which stattement is true? a. If two projects have the same payback periods, and the same initial investments, they are equally attractive and should be invested. b. If two projects have the same NPV, and the same initial investments, they are equally attractive and should be invested. c. If two projects have the same discounted payback periods, and the same initial investments, they are equally attractive and should be invested. d. If two projects have the same IRR, and the same initial investments, they are equally attractive and should be invested. e. Need more information
e
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? a. Assets increase by $75,000 and expenses increase by $75,000. b. Assets increase by $75,000 and expenses decrease by $75,000. c. Liabilities increase by $75,000 and expenses decrease by $75,000. d. Assets decrease by $75,000 and expenses decrease by $75,000. e. Assets increase by $75,000 and liabilities increase by $75,000.
e
f budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be: a. $ 860 b. $ 1,100 c. $ 1,960 d. $ 9,160 e. $11,360
e
n June, 1, Paid $200 cash for office supplies. Prepare journal entries to record the above transactions On June, 1. a. Debit Cash $ 200 Credit office supplies $200 b. Debit office supplies expense $200 Credit Cash $ 200 c. Debit Cash $ 200 Credit office supplies expense $200 d. Debit equipment $200 Credit Cash $ 200 e. Debit office supplies $200 Credit Cash $ 200
e
on December 31 , The Prepaid Insurance account has a $3,000 debit balance before adjustment. An examination of insurance policies shows $900 of insurance expired. Prepare general journal entries on December 31 for adjusting account. a. Credit Insurance expense $950 Debit Prepaid insurance $950 b. Debit Insurance expense $2,100 Credit Prepaid insurance $2,100 c. Debit Cash $950 Credit Prepaid insurance $950 d. Credit Cash $950 Debit Prepaid insurance $950 e. Debit Insurance expense $950 Credit Prepaid insurance $950
e
