Accounting Exam 10 11 12

Prepaid Workers' Compensation Insurance is what type of account?

Asset

When the term F.O.B. shipping point is used, title passes:

When goods are shipped

The first entry to adjust Merchandise Inventory includes:

a credit to merchandise inventory

Freight-in:

adds to the cost of goods total

Plant Plant, Property and Equipment is usually listed:

by how long they will last

Supplies is a(n):

cost

Ending inventory:

decreases cost of goods sold

A summary record of each person's earnings, deductions, and net pay is called a(n):

employee individual earnings record

Which inventory appears in the balance sheet column of the worksheet?

ending inventory

The excess of net revenue over the cost of goods sold is called:

merchandising income

Gross profit less operating expenses equals:

net income

Beginning and ending inventories for Jim's Books are $12,800 and $8,400, respectively. The debit amounts (not including Income Summary) in the income statement columns of the worksheet total $13,800, and the credit amounts (not including Income Summary) total $15,000. The firm has a:

net loss of 3200

When counting supplies, several boxes were missed. This would cause:

supplies expense to be overstated

The post-closing trial balance is prepared from:

the general ledger

As the Prepaid Workers' Compensation is recognized, the amount will transfer to:

workers' compensation insurance expense

The income statement is prepared from the:

worksheet

In which section does Interest Revenue appear in the Income Statement?

other income

Accumulated Depreciation - Buildings should be shown on the:

post-closing trial-balance

Which of the following items generally has a credit balance in the income statement columns of the worksheet?

purchase returns and allowances

When closing income statement accounts having credit balances, which of the following accounts will also be closed?

purchases discount

The normal balance of Income Summary is:

the account does not have a normal balance

On the worksheet the ending Merchandise Inventory account appears in the:

adjustment, adjusted trial balance, and balance sheet columns

Johnson Supplies has $530,000 in net sales and $300,000 in gross profit. Cost of Goods Sold equals:

230000

If $6,700 was the beginning inventory, purchases were $12,000 and sales were $6,000. How much was ending inventory last accounting period?

6700

Returned merchandise for credit under the perpetual inventory method. This will be recorded with:

A debit to accounts payable and a credit to merchandise inventory

Returned merchandise under the periodic inventory method. This will be recorded with:

A debit to accounts payable and a credit to purchases returns and allowances

Jim's Accessories bought 150 necklaces for $40 each on account. Payment terms are 5/10, n/30. In addition, 14 necklaces were returned prior to payment. The entry to record the return would include:

A debit to accounts payable for 538

Returned merchandise paid for within the discount period for a Cash refund. This will be recorded with:

A debit to an asset

Recording to the accounts receivable subsidiary ledger is done:

Daily

Sam received $8,000 in advance for renting part of his building. What is the entry to record the receipt?

Debit cash; credit unearned rent revenue

The return of merchandise to the supplier for credit using the perpetual inventory system would include a:

Debit to accounts payable and a credit to merchandise inventory

The entry to record a payment on a $660 account within the 4% discount period would include a:

Debit to accounts payable for 660

The term used when the seller is responsible for the cost of freight is:

F.O.B. destination

The term used when the purchaser is responsible for the cost of freight is:

F.O.B. shipping point

Most employers are levied a payroll tax for:

FICA taxes, federal and state unemployment taxes

Which form is sent to the Social Security Administration along with the W-2s? It reports total wages, FICA tax withheld, etc., for the previous year.

Form W-3

What type of an account is Wages and Salaries Payable?

Liability

The shipping paid on goods purchased F.O.B. Shipping Point was not recorded. This error will cause:

Net income to be overstated

Office Supplies (not used for resale) bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Merchandise Inventory. This error will cause:

No effect on net income or total assets

The return of merchandise was recorded as a debit to Accounts Receivable and a credit to Merchandise Inventory. This error will cause:

Total assets to be overstated

Freight-in is:

a cost of purchasing goods

The payment of FUTA would include:

a debit to FUTA payable

If a credit memorandum is issued, what account will be decreased on the seller's books?

accounts receivable

The information to prepare the Statement of Owner's Equity comes from the:

balance sheet columns on the worksheet

The income summary amounts in the income statement columns of the worksheet represent:

beginning and ending inventory

Net Sales + Sales Discounts + Sales Returns and Allowances equals:

gross sales

The adjustment for accrued wages was NOT done; this would cause:

liabilities to be understated

Which of the following is an operating expense?

salaries expense

What is the name of the revenue account used by merchandise companies?

sales

Gross Profit equals:

sales - sales returns and allowances - sales discounts - cost of goods sold

When closing income statement accounts having debit balances, which of the following accounts will also be closed?

sales returns and allowances

A debit memorandum decreases which account on the seller's books?

Accounts Receivable

Green Realty paid $6,000 rent on a building in advance for two years on May 1. The amount that should be recorded as rent expense as of December 31 at the end of Year 1 is:

2000

Joy's Accessories bought 65 necklaces for $12 each on account. The payment terms of 2/10, n/30. In addition, 13 necklaces were returned prior to payment. The entry to record the initial purchase would include:

A debit to merchandise inventory for 780

A discount on merchandise purchased would be a:

Debit to accounts payable, and a credit to merchandise inventory

A purchase of merchandise inventory for cash:

Decrease net income