Accounting Final

debit to Cash Over and Short for $13

A $150 petty cash fund has cash of $54 and receipts of $83. The journal entry to replenish the account would include a

an asset account

A capital expenditure results in a debit to

used in the operations of a business

A characteristic of a fixed asset is that it is

deduction from the balance per the company's records

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a(n)

b) debit Accounts Payable; credit Cash

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? a) debit Cash; credit Accounts Payable b) debit Accounts Payable; credit Cash c) debit Cash; credit Accounts Receivable d) debit Accounts Receivable; credit Cash

residual value

A fixed asset's estimated value at the time it is to be retired from service is called

a deduction from the balance per company's records

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

contra asset

Accumulated Depreciation is a

capital expenditures

Expenditures that add to the utility of fixed assets for more than one accounting period are

LIFO

Ending inventory is made up of the oldest purchases when a company uses

sales less cost of merchandise sold

Gross profit is equal to

FOB shipping point

If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as

FOB shipping destination

If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

FOB shipping point

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are

d) percent of the cash discount

In credit terms of 3/15, n/45, the "3" represents the a) number of days when the entire amount is due b) full amount of the invoice c) number of days in the discount period d) percent of the cash discount

investment

Land acquired so it can be resold in the future is listed on the balance sheet as a(n)

current asset

Merchandise inventory is classified on the balance sheet as a

a) debit to Cash and a credit to Sales

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a a) debit to Cash and a credit to Sales b) debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales c) debit to Cash, credit to Credit Card Expense, and a credit to Sales d) debit to Sales, debit to Credit Card Expense, and a credit to Cash

reported on the balance sheet as a deduction from the cost of the mineral deposit

The accumulated depletion account is

credit terms

The arrangements between buyer and seller as to when payments for merchandise are to be made are called

d) double-declining-balance

The depreciation method that does not use residual value in calculating the first year's depreciation expense is a) straight-line b) sum-of-the-digits c) units-of-output d) double-declining-balance

LIFO

The inventory method that assigns the most recent costs to cost of merchandise sold is

perpetual

The inventory system employing accounting records that continuously disclose the amount of inventory is called

b) straight-line

The most widely used depreciation method is a) units-of-output b) straight-line c) double-declining-balance d) other

provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with

The objectives of internal control are to

periodic system determines the inventory on hand only at the end of the accounting period

The primary difference between a periodic and perpetual inventory system is that a

FIFO and LIFO

The two most widely used methods for determining the cost of inventory are

d) debit to Merchandise Inventory

Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a a) debit to Cash b) credit to Merchandise Inventory c) credit to Customer Refunds Payable d) debit to Merchandise Inventory

gross profit

What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?

b) debit to Cash; a credit to Merchandise Inventory

When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a a) debit to Cash; a credit to Sales b) debit to Cash; a credit to Merchandise Inventory c) debit to Sales; a credit to Accounts Payable d) debit to Merchandise Inventory; a credit to Cash

income statement

When comparing a retail business to a service business, the financial statement that changes the most is the

b) debit Merchandise Inventory; credit Accounts Payable

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry? a) debit Merchandise Inventory; credit Cash Discounts b) debit Merchandise Inventory; credit Accounts Payable c) debit Merchandise Inventory; credit Purchases d) debit Accounts Payable; credit Merchandise Inventory

b) units-of-output method

When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is a) double-declining-balance method b) units-of-output method c) MACRS d) straight-line method

a) debit Cost of Merchandise Sold; credit Merchandise Inventory

When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is: a) debit Cost of Merchandise Sold; credit Merchandise Inventory b) No journal entry is made to record the cost of merchandise sold. c) debit Cost of Merchandise Sold; credit Sales d) debit Merchandise Inventory; credit Cost of Merchandise Sold

d) Sales

Which of the following accounts has a normal credit balance? a) Merchandise Inventory b) Accounts Receivable c) Delivery Expense d) Sales

b) Merchandise Inventory

Which of the following accounts has a normal debit balance? a) Sales b) Merchandise Inventory c) Accounts Payable d) Interest Revenue

d) All of these choices are correct.

Which of the following should be included in the acquisition cost of a piece of equipment? a) testing costs prior to placing the equipment into production b) transportation costs c) installation costs d) All of these choices are correct.

a single employee is responsible for collecting and recording of cash

Which one of the following reflects a weak internal control system?