Accounting Review 5/21/2019

On Your Mark Writing Supplies estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $175,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?

$1,750.00

A firm has total costs of $2000 and fixed costs of $1100. It produces 600 units. What is the variable costs per unit?

$1.50

A firm has total sales revenue of $350,000 with sales of 7000 units. Its variable costs are $35 per unit. Fixed costs are $100,000. What is the total contribution for the business?

$105,000

Tucker's Cafe signed a $15,000, 180-day, 10%, interest-bearing note on May 1, 2009. Using a 360-day year, what is the maturity value of the note?

$15,750.00

Creative Art Supplies purchased a new display easel on January 1, 2010 for $850.00. The estimated salvage (disposal) value is $50.00 and the estimated useful life is 5 years. What is the annual depreciation expense?

$160.00

Matt has gross earnings of $300.00 and total deductions of $126.75. What is Matt's net pay?

$173.25

Joe's Taxi Service purchased a new taxi on March 1, 2009 for $24,000.00. The estimated salvage (disposal) value is $3,000.00 and the estimated useful life is 3 years. What is the accumulated depreciation at the end of 2011?

$19,833.33

On March 31, Iredell Company received a bank statement showing the following information: Bank Statement Balance: $2,345.00 Bank Service Charge: $15.00 The records of the business show the following information: Outstanding deposit, Mar. 29: $250.00 Outstanding Checks: No. 288 $225.00, No. 289 $25.00 Assuming that the bank statement balance is correct, what is the correct cash account balance on March 31?

$2,345.00

A firm has total sales revenue of $5 million with sales of 4000 units. Its variable costs are $600 per unit. Fixed costs are $1 million. What is the total contribution for the business?

$2.6 million

Hair Design Supply Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $1,200,000.00. In the past, actual uncollectible accounts expense has been about 2.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?

$24,000.00

Mountain Business Services purchased a computer on July 1, 2010 for $2,500.00. The estimated salvage (disposal) value is $100.00 and the estimated useful life is 5 years. What is the depreciation expense for 2010?

$240.00

Creative Art Supplies purchased a delivery van on March 1, 2009 for $12,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the accumulated depreciation at the end of 2011?

$3,400.00

Sneakers Snack Shop signed a $30,000, 90-day, 8%, interest-bearing note on August 1, 2009. Using a 360-day year, what is the maturity value of the note?

$30,600.00

Burger Boy Diner purchased a commercial oven on August 1, 2010 for $6,800.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 7 years. What is the depreciation expense for 2010?

$375.00

NC Office Supply purchased a heating system on September 1, 2009 for $18,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the accumulated depreciation at the end of 2011?

$4,200.00

On October 31, Cherokee Company received a bank statement showing the following information: Bank Statement Balance: $4,375.00 Bank Service Charge: $25.00 The records of the business show the following information: Outstanding deposit, Oct. 30: $175.00 Outstanding Checks: No. 329 $325.00, No. 330 $125.00 No. 331 $75.00 Assuming that the bank statement balance is correct, what is the correct cash account balance on March 31?

$4,525.00

Western Textile Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $5,275,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?

$52,750.00

NC Office Supply purchased a heating system on September 1, 2010 for $18,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the depreciation expense for 2010?

$600.00

selling price of $800 per unit. What is the total cost of production to Parc Oasis Ltd. if it produces 100 units?

$65,000

Mountain Business Services purchased a computer on January 1, 2009 for $3,600.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 5 years. What is the annual depreciation expense?

$680.00

Joe's Taxi Service purchased a new taxi on January 1, 2010 for $22,000.00. The estimated salvage (disposal) value is $1,000.00 and the estimated useful life is 3 years. What is the annual depreciation expense?

$7,000.00

Joe's Taxi Service purchased a new taxi on March 1, 2010 for $24,000.00. The estimated salvage (disposal) value is $3,000.00 and the estimated useful life is 3 years. What is the depreciation expense for 2010?

$7,000.00

Pet Food Wholesale estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $750,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?

$7,500.00

Burger Boy Diner purchased a commercial oven on January 1, 2009 for $5,800.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 7 years. What is the annual straight-line depreciation expense?

$800.00

High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note?

$82,500.00

Greg has gross earnings of $245.00, Social Security withholding of $15.19, Medicare withholding of $3.55, federal income tax withholding of $50.00, and state income tax withholding of $15.93. What are Greg's total deductions?

$84.67

Which of the following prices is the best example of psychological pricing?

$9.99

Maple Tree Candy Factory estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $185,000.00. In the past, actual uncollectible accounts expense has been about 0.5% of total sales on account. What is the estimated uncollectible accounts expense for the year?

$925.00

Steve's Auto Parts purchased a display case on January 1, 2009 for $3,400.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 10 years. What is the accumulated straight-line depreciation at the end of 2011?

$960.00

Thinking and Problem Solving fits into which skills category?

21st Century Skills

If a product has a selling price of $18, variable costs of $7, and a sales volume of 2300, then the total contribution is

25,300

A firm has total costs of $6000 and fixed costs of $2100. It produces 800 units. What is the variable costs per unit?

4.88

Brandon worked 7 hours on Monday, 8 hours on Tuesday, 10 hours on Wednesday, 9 hours on Thursday, 10 hours on Friday, and 4 hours on Saturday. Brandon's rate of pay is $12 per hour. Calculate Brandon's regular, overtime and total hours for the week.

40 Regular Hours, 8 Overtime Hours, and 48 Total Hours

ABC Inc. has $60 million in sales. The entire market is valued at $150 million. What is ABC Inc.'s market share?

40%

If a firm has gross profit of $3 million, sales revenue of $5 million and expenses of $1 million, then the net profit margin would be

40%

If a business has gross profit of $100 million, overheads of $10 million and capital employed is

45%

If a product has a selling price of $10, variable costs of $4, and a sales volume of 1200, then the total contribution is

7200

The acid test ratio can be used to identify a firm's

Ability to pay its short-term debts

Sales Journal Page: 3 Date: March 3 Account Debited: 1st Church Sale No.: 716 Accounts Receivable Debit: 36 Sales Credit: 32 Sales Tax Payable Credit: 4 Date: March 4 Account Debited: 717 Accounts Receivable Debit: 22 Sales Credit: 19 Sales Tax Payable Credit: 3 The Bakery sells merchandise for $32.00 on account to 1st Church. What is the correct posting of the Mar 3rd journalized transaction shown in Figure 3.03 J to the accounts receivable subsidiary ledger?

Accounts Receivable/ 1st Church, $36, which will increase the subsidiary ledger account Debit Balance by $36

Qualitative factors to consider in an investment appraisal do not include

Alternative investment projects and their potential yields/returns

Cash. Asset, liability, owner's equity, or revenue?

Asset

Prepaid Insurance. Asset, liability, owner's equity, or revenue?

Asset

Supplies. Asset, liability, owner's equity, or revenue?

Asset

Which type of account is Prepaid Insurance and Supplies classified as?

Asset

What does the A in D.E.A.D. C.O.I.L. stand for?

Assets

If the business pays $325 for utilities what will be the effect on the accounting equation?

Assets Decrease by $325 and Owner's Equity Decrease by $325

What will be the effect on the accounting equation of the business if the owner withdraws cash from the business for personal use?

Assets: Decrease, Liabilities: No Change, Owner's Equity: Decrease

What will be the effect on the accounting equation if the company purchases equipment with its cash?

Assets: Increase and Decrease, Liabilities: No Change, Owner's Equity: No Change

What will be the effect on the accounting equation of the business if the owner invests personal cash in the business?

Assets: Increase, Liabilities: No Change, Owner's Equity: Increase

Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST thing Samuel will do in preparing this statement?

Calculate the component percentages.

The average rate of return can best be described as an investment appraisal technique that

Calculates the average annual profit of a project as a percentage of the principal

What would be the appropriate source document for the following transaction: Received Cash from daily cash and credit card sales?

Calculator Tape

Which of the following accounts has a normal credit balance?

Capital

The financial document that shows how cash has flowed into a business and what it has spent the cash on is known as the

Cash flow statement

Which statement does not apply to the components of capital in an incorporated company?

Cash used to buy current assets

In the worst case scenario, what can firms sell if they are struggling to survive?

Certain fixed assets

What would be the appropriate source document for following transaction: Paid Cash to the owner as a withdrawal?

Check stub

Andrew is very thorough in his work making sure that all financial statements are produced accurately and in a timely fashion. Which key principle of ethics has Andrew demonstrated?

Competence

A "quantified picture" of the consumers in your market segment for products you expect to sell is known as:

Consumer Profile

CURRENT assets do NOT include

Copyrights and patents

Accounts Payable. Normal Credit or Debit Balance?

Credit

Capital. Normal Credit or Debit Balance?

Credit

Sales. Normal Credit or Debit Balance?

Credit

What does the C in D.E.A.D. C.O.I.L. stand for?

Credit

Purchases Journal Page: 12 Date: November 7 Accounts Credited: Surf Tales Purch. NO.: 321 Purchases DR. Accounts Payable CR.: 675 What is the correct posting of the journalized transaction shown in Figure 3.03 F to the accounts payable subsidiary ledger?

Credit Accounts Payable/ Surf Tales, $675

Cash Receipts Journal Page: 3 Date: March 5 Account Title: Sue Sews Doc. No.: R43 Accounts Receivable Credit: 544 Cash Debit: 544 Date: March 7 Account Title: Pick Up Stich Doc. No.: R44 Accounts Receivable Credit: 325 Cash Debit: 325 Betsy's Wholesale received $544 payment on account from Sue Sews. What is the correct posting of the Mar 5 journalized transaction shown in Figure 3.03 H to the accounts receivable subsidiary ledger?

Credit Accounts Receivable/Sue Sews, $544, which will decrease the subsidiary ledger account Debit Balance, $544

Which ratio would a business prefer not to be very high in value?

Current Test

Debtors(accounts receivable) are

Customers who have bought items but did not pay for them in cash

Accounts Receivable. Normal Credit or Debit Balance?

Debit

Cash. Normal Credit or Debit Balance?

Debit

Drawing. Normal Credit or Debit Balance?

Debit

Rent Expense. Normal Credit or Debit Balance?

Debit

Supplies. Normal Credit or Debit Balance?

Debit

What does the D in D.E.A.D. C.O.I.L. stand for?

Debit

Starz Transport paid cash on account to Avery Aircraft, $995, covering Purchase Invoice No. 1691. What is the journal entry for Starz Transport to record this transaction?

Debit Accounts Payable/ Avery Aircraft $995; credit Cash, $995.

Sonny's Skateboard Shop paid cash on account to Boards Unlimited, $795, covering Purchase Invoice No. 290. What is the journal entry for Sonny's Skateboard Shop to record this transaction?

Debit Accounts Payable/ Boards Unlimited $795; credit Cash, $795.

Valley Products paid cash to Carolina Distributors, $882; covering Purchase Invoice No. 1734 for $900, less a 2% discount, $18.00. What is the journal entry for Valley Products to record this transaction?

Debit Accounts Payable/ Carolina Distributors, $900; credit Purchases Discount $18 and credit Cash $882.

Dollar Arcade paid cash to Cola Distributors, $245; covering Purchase Invoice No. 4131 for $250, less a 2% discount, $5.00. What is the journal entry for Dollar Arcade to record this transaction?

Debit Accounts Payable/ Cola Distributors, $250; credit Purchases Discount $5 and credit Cash $245.

Seahawk Fastpitch Softball paid cash on account to Community Field, $295, covering Purchase Invoice No. 14. What is the journal entry for Seahawk Fastpitch Softball to record this transaction?

Debit Accounts Payable/ Community Field $295; credit Cash, $295.

High Roads Mini Golf paid cash to Golf Equipment Distributors, $646; covering Purchase Invoice No.1746 for $680, less a 5% discount, $34.00. What is the journal entry for High Roads Mini Golf to record this transaction?

Debit Accounts Payable/ Golf Equipment Distributors, $680; credit Purchases Discount $34 and credit Cash $646.

Champs Country Club paid cash to Masters Jacket Supply, $931; covering Purchase Invoice No. 33 for $950, less a 2% discount, $19.00. What is the journal entry for Champs Country Club to record this transaction?

Debit Accounts Payable/ Masters Jacket Supply, $950; credit Purchases Discount $19 and credit Cash $931.

Impressive Signs paid cash to Peoria Paints, $513; covering Purchase Invoice No. 77 for $540, less a 5% discount, $27.00. What is the journal entry for Impressive Signs to record this transaction?

Debit Accounts Payable/ Peoria Paints, $540; credit Purchases Discount $27 and credit Cash $513.

Curt's Cabinets paid cash to Phil's Fasteners, $441; covering Purchase Invoice No. 54 for $450, less a 2% discount, $9.00. What is the journal entry for Curt's Cabinets to record this transaction?

Debit Accounts Payable/ Phil's Fasteners, $450; credit Purchases Discount $9 and credit Cash $441.

Billy Bob's B-B-Q paid cash to Pork Distributors, $418; covering Purchase Invoice No. 1921 for $440, less a 5% discount, $22.00. What is the journal entry for Billy Bob's B-B-Q to record this transaction?

Debit Accounts Payable/ Pork Distributors, $440; credit Purchases Discount $22 and credit Cash $418.

Terry's Tree Removal paid cash to Sam's Sharpening Service, $735; covering Purchase Invoice No. 1415 for $750, less a 2% discount, $15.00. What is the journal entry for Terry's Tree Removal to record this transaction?

Debit Accounts Payable/ Sam's Sharpening Service, $750; credit Purchases Discount $15 and credit Cash $735.

Mike's Music paid cash to Sheet Music Supply, $294; covering Purchase Invoice No. 54 for $300, less a 2% discount, $6.00. What is the journal entry for Mike's Music to record this transaction?

Debit Accounts Payable/ Sheet Music Supply, $300; credit Purchases Discount $6 and credit Cash $294.

Computer Phones, Inc. paid cash to Software Supply, $817; covering Purchase Invoice No.2254 for $860, less a 5% discount, $43.00. What is the journal entry for Computer Phones, Inc. to record this transaction?

Debit Accounts Payable/ Software Supply, $860; credit Purchases Discount $43 and credit Cash $817.

Wanda's Wigs paid cash to Wig Warehouse, $323; covering Purchase Invoice No. 812 for $340, less a 5% discount, $17.00. What is the journal entry for Wanda's Wigs to record this transaction?

Debit Accounts Payable/ Wig Warehouse, $340; credit Purchases Discount $17 and credit Cash $323.

What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY, $500?

Debit Accounts Payable/Avis Supply Company and credit Cash

Cash Payment Journal Page: 22 Date: January 1 Account Title: Bills Marina Accounts Payable Debit: 595 Cash Credit: 595 Which is the correct posting of the Cash Payments Journal Entry shown in the figure above to the accounts payable subsidiary ledger?

Debit Accounts Payable/Bill's Marina, $595

Cash Payment Journal Page: 23 Date: January 1 Account Title: Bills Marina CK No.: 194 Accounts Payable Debit: 595 Cash Credit: 595 Which would be the correct posting of the Cash Payments Journal Entry shown in Figure 3.03 A to the accounts payable subsidiary ledger?

Debit Accounts Payable/Bill's Marina, $595

Carson's Candy Shoppe signed a 60-day, 10% note to Jello Beans for an extension of time on its account payable in the amount of $2,000.00. What is the correct entry for Carson's Candy Shoppe to record the note payable for an extension of time?

Debit Accounts Payable/Jello Beans $2,000.00; credit Notes Payable $2,000.00

Cara's CDs paid cash on account to Willie's Wholesale, $595, covering Purchase Invoice No. 60. What is the journal entry for Cara's CDs to record this transaction?

Debit Accounts Payable/Willie's Wholesale $595; credit Cash, $595.

Linen Supply sold Nites Inn, merchandise on account for $551, plus sales tax of $31. What is the journal entry for Linen Supply to record this transaction?

Debit Accounts Receivable Nites Inn, $582; Credit Sales, $551, Sales Tax Payable, $31.

On December 23, Wake Incorporated received notice from the bank of a dishonored check from Davie Company in the amount of $125.00. The bank charged a service fee of $25.00. What is the correct journal entry for Wake Incorporated to record the dishonored check?

Debit Accounts Receivable-Davie Company $150.00, Credit Cash $150.00

On April 16, Caldwell Company received notice from the bank of a dishonored check from Hickory Hosiery in the amount of $55.00. The bank charged a service fee of $25.00. What is the correct journal entry for Caldwell Company to record the dishonored check?

Debit Accounts Receivable-Hickory Hosiery $80.00; credit Cash $80.00

On February 14, Watauga Enterprises received notice from the bank of a dishonored check from Wilkes Company in the amount of $200.00. The bank charged a service fee of $25.00. What is the correct journal entry for Watauga Enterprises to record the dishonored check?

Debit Accounts Receivable-Wilkes Company $225.00; credit Cash $225.00

On Your Mark Writing Supplies received a check for $225.00 from Pen & Paper, whose account was previously written off. On Your Mark Writing Supplies uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Pen & Paper?

Debit Accounts Receivable/ Pen & Paper, $225.00; Credit Allowance for Uncollectible Accounts, $225.00

Mary Ann's Sewing Notions received a check for $75.00 from Cathy Martin, whose account was previously written off. Mary Ann's Sewing Notions uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Cathy Martin?

Debit Accounts Receivable/Cathy Martin, $75.00; credit Allowance for Uncollectible Accounts, $75.00

Bill's Grocery sold merchandise on account to Jones High Booster Club for $237. What is the journal entry for Bill's Grocery to record this transaction?

Debit Accounts Receivable/Jones High Booster Club, $237; Credit Sales $237.

Mother Goose Children's Clothing received a check for $125.00 from Little Angels, whose account was previously written off. Mother Goose Children's Clothing uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Little Angels?

Debit Accounts Receivable/Little Angels, $125.00; credit Allowance for Uncollectible Accounts, $125.00

The Mine Safety Warehouse sold Lucky Mines, merchandise on account for $414, plus sales tax of $24. What is the journal entry for The Mine Safety Warehouse to record this transaction?

Debit Accounts Receivable/Lucky Mines, $438; Credit Sales, $414, Sales Tax Payable, $24.

Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable?

Debit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit Notes Receivable $5,000.00

The Wayback Antique Supply sold Old Treasures, merchandise on account for $137, plus sales tax of $8. What is the journal entry for Wayback Antique Supply to record this transaction?

Debit Accounts Receivable/Old Treasures, $145; Credit Sales $137, Sales Tax Payable, $8.

How would you correctly journalize the following transaction: Sold services on account to Pixar?

Debit Accounts Receivable/Pixar and Credit Sales

Diane's Perfume Wholesale sold merchandise on account to Select Perfumes for $437, plus sales tax of $23. What is the journal entry for Diane's Perfume to record this transaction?

Debit Accounts Receivable/Select Perfumes, $460; Credit Sales, $437, Sales Tax Payable, $23.

Tricky Ricky's Appliances sold merchandise on account to Smith Builders for $880, plus sales tax of $40. What is the journal entry for Tricky Ricky's Appliances to record this transaction?

Debit Accounts Receivable/Smith Builders, $920; Credit Sales $880, Sales Tax Payable, $40.

Sales Journal Page: 2 Date: February 4 Account Debited: Speed Demon Sale No.: S15 Accounts Receivable Debit: 108 Sales Credit: 100 Sales Tax Payable Credit: 8 Date: February 5 Account Debited: R. Cool Sale No.: S16 Accounts Receivable Debit: 135 Sales Credit: 125 Sales Tax Payable Credit: 10 Willie's Wheels sold $100 merchandise on account to Speed Demon. What is the correct posting of the Feb 4th journalized transaction shown in Figure 3.03 I to the accounts receivable subsidiary ledger?

Debit Accounts Receivable/Speed Demon, $108, which will increase the subsidiary ledger account Debit Balance by $108

Sales Journal Page: 3 Date: February 4 Account Debited: Speed Demon Sale No.:15 Accounts Receivable: 108 Sales Credit: 100 Sales Tax Payable Credit: 8 Date: February 5 Account Debited: R. Cool Sale No.:16 Accounts Receivable Debit: 135 Sales Credit: 125 Sales Tax Payable Credit: 10 Willie's Wheels sold $100 merchandise on account to Speed Demon. What is the correct posting of the Feb 4th journalized transaction shown in Figure 3.03 I to the accounts receivable subsidiary ledger?

Debit Accounts Receivable/Speed Demon, $108, which will increase the subsidiary ledger account Debit Balance by $108

How would you correctly journalize the following transaction: Paid cash for advertising expense?

Debit Advertising Expense and Credit Cash

What is the correct entry for the transaction, PAID CASH FOR NEWSPAPER ADVERTISEMENT, $200?

Debit Advertising Expense and credit Cash

James discovered that a transaction for an Advertising Expense was journalized and posted in error as a debit to Miscellaneous Expense, $200. What is the entry to correct the error?

Debit Advertising Expense, $200; credit Miscellaneous Expense, $200

Fred's Furniture Store paid cash for advertising, $375. What is the journal entry to record this transaction?

Debit Advertising Expense, $375; credit Cash, $375.

Master Marketing received a payment of a note receivable in the amount of $1,295.00. Interest on the note receivable was $95.00. What is the journal entry to record the payment of the note receivable?

Debit Cash $1,295.00; Credit Interest Income $95.00; Credit Notes Receivable $1,200.00

Lighten Up Electrical Supply received a payment of a note receivable in the amount of $1,675.00. Interest on the note receivable was $75.00. What is the journal entry to record the payment of the note receivable?

Debit Cash $1,675.00; credit Interest Income $75.00; credit Notes Receivable $1,600.00

The Style Company signed a one-year, 10%, interest-bearing note for $10,000.00 with First American Bank. What is the journal entry for the issuance of the note payable?

Debit Cash $10,000.00; Credit Notes Payable $10,000.00

Beach Bums Surf Shop signed a 90-day, 5%, interest-bearing note for $3,000.00 with First National Bank. What is the journal entry for the issuance of the note payable?

Debit Cash $3,000.00; credit Notes Payable $3,000.0

Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank. What is Carson's Shoe Store's journal entry for the issuance of the note payable?

Debit Cash $5,000.00; credit Notes Payable $5,000.00

Sports Warehouse received a payment in the amount of $697.50 for a note receivable. Interest on the note receivable was $47.50. What is the journal entry to record the payment of the note receivable?

Debit Cash $697.50; Credit Interest Income $47.50; Credit Notes Receivable $650.00

How would you correctly journalize the following transaction: Received payment from Home Depot on account?

Debit Cash and Credit Accounts Receivable/Home Depot

How would you correctly journalize the following transaction: Received a check from Pixar in payment on its account?

Debit Cash and Credit Accounts Receivable/Pixar

How would you correctly journalize the following transaction: Received Cash from the owner as an investment?

Debit Cash and Credit Owner's Capital

How would you correctly journalize the following transaction: Received Cash from Daniel Moreno for services provided?

Debit Cash and Credit Sales

What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, $800?

Debit Cash and credit Accounts Receivable/Burke Supply

What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, $5000?

Debit Cash and credit Dana Jackson, Capital

What is the correct entry for the transaction, HANS SCHMIDT INVESTED $2000 OF HIS OWN MONEY INTO THE BUSINESS?

Debit Cash and credit HANS SCHMIDT, Capital

What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $150?

Debit Cash and credit Sales

What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $250?

Debit Cash and credit Sales

Piggy's Butcher House received $114 cash from Jimmy's Barbeque for payment on account. What is the journal entry for Piggy's Butcher House to record this transaction?

Debit Cash, $114; credit Accounts Receivable/Jimmy's Barbeque, $114.

Marvin's Motorcycles received $125 cash from Stewart's Rides for payment on his account. Stewart's Rides took a $25 sales discount for paying early. What is the journal entry for Marvin's Motorcycles to record this transaction?

Debit Cash, $125; debit Sales Discounts $25; credit Accounts Receivable/Stewart's Rides, $150.

The Trough Restaurant received $195 cash from 1st Bank for payment on account. What is the journal entry for The Trough Restaurant to record this transaction?

Debit Cash, $195; credit Accounts Receivable/1st Bank, $195.

Lucy's Famous Mexican Food sold merchandise for $26, plus sales tax of $1, to Craig Morton, who paid for the merchandise with a bank credit card at the time of the sale. What is the journal entry for Lucy's Famous Mexican Food to record this transaction?

Debit Cash, $27; Credit Sales, $26, Sales Tax Payable, $1.

The Toy Box sold merchandise for cash to Great Gift Boxes for $265, plus sales tax of $20. What is the journal entry for The Toy Box to record this transaction?

Debit Cash, $285; Credit Sales, $265, Sales Tax Payable, $20.

Food Supply received $320 cash from Pancake Hut for payment on account. What is the journal entry for Food Supply to record this transaction?

Debit Cash, $320; credit Accounts Receivable/Pancake Hut, $320.

Slick's Used Cars received $415 cash from Eddie Baker for payment on account. What is the journal entry for Slick's Used Cars to record this transaction?

Debit Cash, $415; credit Accounts Receivable/Eddie Baker, $415.

The Toy Shop sold merchandise to Spirit Church for $41 cash. What is the journal entry for The Toy Shop to record this transaction?

Debit Cash, $41; Credit Sales, $41.

Big Kites Mfg. sold merchandise for $432, plus sales tax of $36, to Mountain Soaring, who paid for the merchandise with a bank credit card at the time of the sale. What is the journal entry for Big Kites Mfg. to record this transaction?

Debit Cash, $468; Credit Sales, $432, Sales Tax Payable, $36.

ABC Computers received $489 cash from Quality Electronics for payment on account. What is the journal entry for ABC Computers to record this transaction?

Debit Cash, $489; credit Accounts Receivable/Quality Electronics, $489.

Quick Supply sold office supplies for cash to Jet Set Travel for $45, plus sales tax of $3. What is the journal entry for Quick Supply to record this transaction?

Debit Cash, $48; Credit Sales, $45, Sales Tax Payable, $3.

Heart Medical received $544 cash from Corner Market for payment on account. Corner Market took a $26 discount for paying early. What is the journal entry for Heart Medical to record this transaction?

Debit Cash, $544; debit Sales Discounts $26; credit Accounts Receivable/ Corner Market, $570.

Automotive Supply sold merchandise for cash to Billy Bob's Auto Shop for $775, plus sales tax of $48. What is the journal entry for Automotive Supply to record this transaction?

Debit Cash, $823; Credit Sales, $775, Sales Tax Payable, $48.

Pesky Termite received $85 cash from Bad Wood Hotel for payment on account. What is the journal entry for Pesky Termite to record this transaction?

Debit Cash, $85; credit Accounts Receivable/Bad Wood Hotel, $85.

Michael's Soda Shoppe has depreciation expense of $1,250.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?

Debit Depreciation Expense $1,250.00; credit Accumulated Depreciation $1,250.00

Joe's Taxi Service has depreciation expense of $12,200.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?

Debit Depreciation Expense $12,200.00; credit Accumulated Depreciation $12,200.00

Steve's Auto Repair has depreciation expense of $3,500.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?

Debit Depreciation Expense $3,500.00; Credit Accumulated Depreciation $3,500.00

NC Office Supply has depreciation expense of $7,525.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?

Debit Depreciation Expense $7,525.00; credit Accumulated Depreciation $7,525.00

Creative Art Supplies has depreciation expense of $950.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?

Debit Depreciation Expense $950.00; credit Accumulated Depreciation $950.00

WKRP Broadcasting paid federal unemployment taxes of $28. What is the entry to journalize the payment of the unemployment taxes?

Debit Federal Unemployment Tax Payable $28.00, credit Cash $28.00

What is the correct journal entry for the transaction, PAID CASH TO JOHN SMITH, OWNER FOR PERSONAL USE, $500?

Debit John Smith, Drawing and credit Cash

Sarah discovered that a sale on account to Jones Company on June 5 for $560 was incorrectly charged to Jackson Company. What is the journal entry to correct this error?

Debit Jones Company $560 and credit Jackson Company $560

What is the correct journal entry for the transaction, PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, $900?

Debit Mark Johnson, Drawing and credit Cash

The merchandise inventory account has a balance of $2,400. At the end of the month, a physical count of the inventory items shows $2,700 on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

Debit Merchandise Inventory, $300; Credit Income Summary, $300

The merchandise inventory account has a balance of $2,400. At the end of the month, a physical count of the inventory items shows $2,700 is on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

Debit Merchandise Inventory, $300; credit Income Summary, $300

The merchandise inventory account has a balance of $1,000. At the end of the month, a physical count of the inventory items shows $1,700 is on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

Debit Merchandise Inventory, $700; credit Income Summary, $700

The merchandise inventory account has a balance of $1,500. At the end of the month, a physical count of the inventory items shows $2,200 is on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

Debit Merchandise Inventory, $700; credit Income Summary, $700

Susan discovered that a sale on account to Michelle Company on February 12 for $800 was incorrectly charged to the account of Michael Company. What is the journal entry to correct this error?

Debit Michelle Company $800 and credit Michael Company $800

What is the correct journal entry for the transaction PAID CASH FOR MISCELLANEOUS EXPENSE, $400?

Debit Miscellaneous Expense and credit Cash

Wholesome Food Distributors granted an extension of time for the account payable of Moore Food Store for a 90-day, 8%, $10,000 note. Using a 360-day year, what is the journal entry for Moore Food Store to record the payment of the note payable?

Debit Notes Payable $10,000.00; debit Interest Expense $200.00; credit Cash $10,200.00

Blowing Rock Hardware paid First American Bank in full for a 180-day, 12%, interest-bearing note for $10,000. Using a 360-day year, what is the journal entry for the payment of the note payable?

Debit Notes Payable $10,000.00; debit Interest Expense $600.00; credit Cash $10,600.00

Carson Tyler has an overdue account in the amount of $415.50 with Mountain Oil Company. Mountain Oil Company agrees to accept a note receivable from Carson. What is the journal entry to record the acceptance of the note receivable?

Debit Notes Receivable $415.50; credit Accounts Receivable/Carson Tyler $415.50

What is the correct journal entry for the transaction, PAID CASH FOR AN OFFICE DESK, $250?

Debit Office Equipment and credit Cash

David wants to replenish the $150 petty cash fund. He has receipts for the following total payments: supplies, $36; and postage (Office Expense), $27. A cash count shows $87 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Office Expense $27, debit Supplies $36 and credit Cash $63

Sports Incorporated has employer payroll taxes as follows: Social Security Tax $225.00, Medicare Tax $125.00 and Federal Unemployment Tax $55.00. What is the entry to record the employer's payroll taxes?

Debit Payroll Tax Expense $405.00; Credit Social Security Tax Payable $225.00, Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00

Claire wants to establish a $250 petty cash fund for her business. She requested a check for $250. What is the correct journal entry to record the transaction?

Debit Petty Cash $250 and credit Cash $250

Michael wants to establish a $500 petty cash fund for his business. He has requested a check for $500. What is the correct journal entry to record the transaction?

Debit Petty Cash $500 and credit Cash $500

How would you correctly journalize the following transaction: Paid cash to Geico for Insurance?

Debit Prepaid Insurance and Credit Cash

What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $200?

Debit Prepaid Insurance and credit Cash

What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $400

Debit Prepaid Insurance and credit Cash

Cash Payment Journal Page: 23 Date: November 7 Account Title: purchases CK No.: 301 Post. Ref.: 5110 General (Debit): 210 Cash Credit: 210 Tiny Church Warehouse made the journal entry shown in Figure 3.03 O in their Cash Payments Journal. What is the correct posting of this entry to the general ledger?

Debit Purchases, $210; credit Cash, $210

What is the journal entry for Bill's Grocery to record this transaction?

Debit Purchases, $249; Credit Accounts Payable/Veggie Wholesale, $249.

The Good Morning Shop purchased merchandise on account from The Donut Plant for $300. What is the journal entry for The Good Morning Shop to record this transaction?

Debit Purchases, $300; Credit Accounts Payable/The Donut Plant, $300

John's Appliances purchased merchandise on account from Electronic Supply for $990. What is the journal entry for John's Appliances to record this transaction?

Debit Purchases, $990; Credit Accounts Payable/Electronic Supply, $990.

How would you correctly journalize the following transaction: Wrote a check for the monthly Rent Expense?

Debit Rent Expense and Credit Cash

What is the correct journal entry for the transaction, PAID CASH FOR RENT, $1000?

Debit Rent Expense and credit Cash

Scott wants to replenish the $225 petty cash fund. He has receipts for the following total payments: supplies, $35; and repairs, $15. A cash count shows $175 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $15, debit Supplies $35 and credit Cash $50

Steve wants to replenish the $200 petty cash fund. He has receipts for the following total payments: supplies, $18; and repairs, $32. A cash count shows $145 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $32, debit Supplies $18, debit Cash Short and Over $5, and credit Cash $55

Emily wants to replenish the $300 petty cash fund. She has receipts for the following total payments: supplies, $55; and repairs, $35. A cash count shows $195 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $35, debit Supplies $55, debit Cash Short and Over $15, and credit Cash $105

Joseph wants to replenish the $150 petty cash fund. He has receipts for the following total payments: supplies, $75; and repairs, $43. A cash count shows $40 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $43, debit Supplies $75, and credit cash $110, credit Cash Short and Over $8

Mary wants to replenish the $200 petty cash fund. She has receipts for the following total payments: supplies, $25; and repairs, $45. A cash count shows $130 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $45, debit Supplies $25 and credit Cash $70

Michelle wants to replenish the $300 petty cash fund. She has receipts for the following total payments: postage (Office Expense), $40; supplies, $25; and repairs, $45. A cash count shows $175 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $45, debit Supplies $25, debit Office Expense $40 and debit Cash Short and Over $15, and credit Cash $125

Jessica wants to replenish the $200 petty cash fund. She has receipts for the following total payments: supplies, $85; and repairs, $55. A cash count shows $75 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $55, debit Supplies $85, and credit Cash $125, credit Cash Short and Over $15

Daniel wants to replenish the $250 petty cash fund. He has receipts for the following total payments: postage, $34; and repairs, $76. A cash count shows $100 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $76, debit Office Expense $34, debit Cash Short and Over $40, and credit Cash $150

Timothy wants to replenish the $300 petty cash fund. He has receipts for the following total payments: postage (Office Expense), $35; supplies, $25; and repairs, $95. A cash count shows $160 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Repair Expense $95, debit Office Expense $35, debit Supplies $25, and credit cash $140, credit Cash Short and Over $15

What is the correct journal entry for the transaction, PAID CASH TO REPAIR OFFICE EQUIPMENT, $250?

Debit Repair Expense and credit Cash

Simon's CDs is closing their books at the end of the year. They have a net loss of $30,000. What is the correct entry to close the Income Summary account?

Debit Retained Earnings, $30,000; credit Income Summary, $30,000

John's Seafood has $1,500.00 in wages, $93.00 in Social Security withholding, $21.75 in Medicare withholding, $200.00 in federal income tax withholding, and $80.00 in state income tax withholding. What is the correct entry for recording the company's payroll?

Debit Salary Expense $1,500.00; credit Social Security Tax Payable $93.00, Medicare Tax Payable $21.75, Federal Income Tax Payable $200.00, State Income Tax Payable $80.00, Cash $1,105.25

Juan's Stuffed Animals accepted returned merchandise purchased on account by Penny Arcade for, $348, plus sales tax of $22. What is the journal entry for Juan's Stuffed Animals to record this transaction?

Debit Sales Returns and Allowances, $348, Sales Tax Payable, $22; Credit Accounts Receivable/Penny Arcade, $370.

Timer's Distributing accepted returned merchandise purchased on account by Serious Sports for, $400, plus sales tax of $32. What is the journal entry for Timer's Distributing to record this transaction?

Debit Sales Returns and Allowances, $400, Sales Tax Payable, $32; Credit Accounts Receivable/Serious Sports, $432.

Patty's Party Favors accepted returned merchandise purchased on account by The Wedding Planners for, $613, plus sales tax of $48. What is the journal entry for Patty's Party Favors to record this transaction?

Debit Sales Returns and Allowances, $613, Sales Tax Payable, $48; Credit Accounts Receivable/The Wedding Planners, $661.

Tony's Custom Pool Cues accepted returned merchandise purchased on account by 3rd Street Pool for, $806, plus sales tax of $52. What is the journal entry for Tony's Custom Pool Cues to record this transaction?

Debit Sales Returns and Allowances, $806, Sales Tax Payable, $52; Credit Accounts Receivable/3rd Street Pool, $858.

Delacom Communciations accepted returned merchandise purchased on account by Wave Com for, $997, plus sales tax of $62. What is the journal entry for Delacom Communciations to record this transaction?

Debit Sales Returns and Allowances, $997, Sales Tax Payable, $62; Credit Accounts Receivable/Wave Com, $1,059.

Delacom Communications accepted returned merchandise purchased on account by Wave Com for, $997, plus sales tax of $62. What is the journal entry for Delacom Communications to record this transaction?

Debit Sales Returns and Allowances, $997, Sales Tax Payable, $62; Credit Accounts Receivable/Wave Com, $1,059.

Burger Barn paid the following taxes: Social Security $240.00, Medicare $110.00, Federal Income Tax $250.00. What is the entry to journalize the payment of the payroll taxes?

Debit Social Security Tax Payable $240.00, Medicare Tax Payable $110.00, Federal Income Tax Payable $250.00; credit Cash $600.00

Watauga Office Supply paid state unemployment taxes of $168.00. What is the entry to journalize the payment of the unemployment taxes?

Debit State Unemployment Tax Payable $168.00, credit Cash $168.00

WKRP Broadcasting paid state unemployment taxes of $95.00. What is the entry to journalize the payment of the unemployment taxes?

Debit State Unemployment Tax Payable $95.00; credit Cash $95.00

What would be the correct journal entry for the following transaction: Purchased supplies on account from Donaldson Supply Co.?

Debit Supplies and Credit Accounts Payable/Donaldson Supply Co.

How would you correctly journalize the following transaction: Purchased supplies on account from Target?

Debit Supplies and Credit Accounts Payable/Target

What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, $75?

Debit Supplies and credit Accounts Payable/Steinman Company

What is the correct journal entry for the transaction, PAID CASH FOR COMPUTER PAPER?

Debit Supplies and credit Cash

Digital Electronics paid $189 cash for supplies from We Deliver Supplies. What is the journal entry for Digital Electronics to record this transaction?

Debit Supplies, $189; credit Cash, $189.

Carl's CDs purchased store supplies on account from Mason Supply for $425. What is the journal entry for Carl's CDs to record this transaction?

Debit Supplies, $425; Credit Accounts Payable/Mason Supply, $425.

Free Time Fishing paid $600 cash for supplies from Go Office Supply. What is the journal entry for Free Time Fishing to record this transaction?

Debit Supplies, $600; credit Cash, $600.

Jacob Doe Tractor purchased store supplies on account from Tractor Supply for $942. What is the journal entry for Jacob Doe Tractor to record this transaction?

Debit Supplies, $942; Credit Accounts Payable/Tractor Supply, $942.

General Journal Date: June 9 Account Title (Debit): Supplies - Store Account Title (Credit): Accounts Payable / Shoe Shack Document No. M44 Post Ref.: 1005 Debit: 220 Credit: 220 Which would be the correct posting of the General Journal Entry shown in Figure 3.03 M to the General Ledger?

Debit Supplies-Store $220; credit Accounts Payable-Control, $220 and Accounts Payable/Gourmet Foods, $220

Christina's Curtains paid cash for the telephone bill, $110. What is the journal entry to record this transaction?

Debit Telephone Expense, $110; credit Cash, $110.

Mitchell Building Supplies uses the direct write-off method when handling uncollectible accounts receivable. Lark Construction owes $1,200.00 on account. Mitchell Building Supplies determined this account to be uncollectible. Which is the correct entry for writing off this account?

Debit Uncollectible Accounts Expense, $1,200.00; credit Accounts Receivable/Lark Construction, $1,200.00

Pet Food Wholesale estimates its uncollectible accounts expense for the year to be $1,500.00. What is the correct entry to record the estimated uncollectible accounts expense?

Debit Uncollectible Accounts Expense, $1,500.00; credit Allowance for Uncollectible Accounts, $1,500

$1,500 of the current year's sales will eventually be uncollectible. The Allowance for Uncollectible Accounts balance is $200. What is the journal entry for recording the adjustment for uncollectible accounts?

Debit Uncollectible Accounts Expense, $1,500; credit Allowance for Uncollectible Accounts, $1,500

$1,800 of the current year's sales will eventually be uncollectible. The Allowance for Uncollectible Accounts balance is $150. What is the journal entry for recording the uncollectible accounts adjustment?

Debit Uncollectible Accounts Expense, $1,800; credit Allowance for Uncollectible Accounts, $1,800

Legal Eagles Law Firm uses the direct write-off method when handling uncollectible accounts receivable. Joe Coffey owes $250.00 on account. Legal Eagles Law Firm determined this account to be uncollectible. Which is the correct entry for writing off this account?

Debit Uncollectible Accounts Expense, $250.00; Credit Accounts Receivable/Joe Coffey, $250.00

Steve's Auto Shop uses the direct write-off method when handling uncollectible accounts receivable. John Taylor owes $375.00 on account. Steve's Auto Shop determined this account to be uncollectible. Which is the correct entry for writing off this account?

Debit Uncollectible Accounts Expense, $375.00; Credit Accounts Receivable/John Taylor, $375.00

Hair Design Supply estimates its uncollectible accounts expense for the year to be $4,250.00. What is the correct entry to record the estimated uncollectible accounts expense?

Debit Uncollectible Accounts Expense, $4,250.00; credit Allowance for Uncollectible Accounts, $4,250.00

Kitchen Supply Warehouse uses the direct write-off method when handling uncollectible accounts receivable. Coffey's Diner owes $450.00 on account. Kitchen Supply Warehouse determined this account to be uncollectible. Which is the correct entry for writing off this account?

Debit Uncollectible Accounts Expense, $450.00; credit Accounts Receivable/Coffey's Diner, $450.00

Maple Tree Candy Factory estimates its uncollectible accounts expense for the year to be $800.00. What is the correct entry to record the estimated uncollectible accounts expense?

Debit Uncollectible Accounts Expense, $800.00; credit Allowance for Uncollectible Accounts, $800.00

Workman Tools estimates its uncollectible accounts expense for the year to be $950.00. What is the correct entry to record the estimated uncollectible accounts expense?

Debit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible Accounts, $950.00

Accessories Plus is closing its books at the end of the year. It is ready to close the dividends account. What is the correct journal entry?

Debit to Retained Earnings; credit to Dividends

Market segmentation looks at _________ & ___________.

Demographics, psychographics

When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?

Double rule across both amount columns.

What does the 2nd D in D.E.A.D. C.O.I.L. stand for?

Drawing

Which of the following is not a qualitative factor affecting investment appraisal?

Expected changes in interest rates, thereby affecting the real value of money

What does the E in D.E.A.D. C.O.I.L. stand for?

Expenses

Which of the following is an example of an own-label brand?

Faded Glory by Walmart

Advertising is what gets a product sold. True or False?

False

Goods and services are marketed in the same way. True or False?

False

Marketing is the same as advertising and selling. True or False?

False

Sales promotions are used to generate short-term gains in sales for Above-the-Line promotion.

False

Firm A has net profit of $135 million from its capital employed of $300 million. Firm B has net profit of $175 million from its capital employed of $420 million. Which firm has the better efficiency ratio?

Firm A as its ROCE is 45% compared to Firm B's ROCE ratio of less than 42%

Which of the following is least important for firms that use the payback period methods of investment appraisal?

Firms that focus on profitability rather than short term cash flows

Basic Skills fits into which skills category

Foundation Skills

An unconventional way of performing marketingactivities on a very low budget.

Guerilla Marketing

Ratio analysis cannot address which question below?

Has the firm's market share improved?

At the end of the accounting period, the prepaid insurance account needs to be adjusted by $721 to reflect insurance that has been used during the period. How is the adjustment recorded on the multi-column trial balance worksheet?

In the Adjustments columns, debit insurance expense, $721; credit prepaid insurance, $721

Office Equipment has a balance of $9,000. The equipment has a useful life of 3 years and a salvage value of $3,000. At the end of the year, how is the adjusting entry for depreciation recorded on a multi-column trial balance worksheet?

In the adjustments columns, Debit Depreciation Expense - Office Equipment, $2,000; Credit Accumulated Depreciation - Office Equipment, $2,000

At the end of the year, Utz Milk Transport calculated its Federal Income Tax amount for the year to be $7,000. Utz Milk Transport already made Federal Income Tax payments in the amount of $4,000. How is the adjusting entry for Federal Income Tax Expense recorded on a multi-column trial balance worksheet?

In the adjustments columns, Debit Federal Income Tax Expense, $3,000; Credit Federal Income Tax Payable, $3,000

The merchandise inventory account has a balance of $900. At the end of the month, a physical count of the inventory items shows $600 on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

In the adjustments columns, Debit Income Summary, $300; Credit Merchandise Inventory, $300

Store Equipment has a balance of $30,000. The equipment has a useful life of 8 years and a salvage value of $6,000. At the end of the year, how is the adjusting entry for depreciation recorded on a multi-column trial balance worksheet?

In the adjustments columns, debit Depreciation Expense - Store Equipment, $3,000; credit Accumulated Depreciation - Store Equipment, $3,000

Supplies - Office has a balance of $3,500. At the end of the month, a physical count of the Supplies - Office items shows $1,500 is on hand. How is the adjusting entry to Supplies - office recorded on a multi-column trial balance worksheet?

In the adjustments columns, debit Supplies Expense - Office, $2,000; credit Supplies-Office, $2,000

When closing the Advertising Expense account, debit:

Income Summary and credit Advertising Expense

When closing the Miscellaneous Expense account, debit:

Income Summary and credit Miscellaneous Expense

James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit:

Income Summary, and credit Owner's Equity, $900

What does the I in D.E.A.D. C.O.I.L. stand for?

Income/Revenue

What is the effect on Owners Equity when a business receives $1,500 cash from the owner as an investment?

Increase by $1,500

What is the effect on assets when a business receives $1,500 cash from the owner as an investment?

Increase by $1,500

If the owner increases Owner's Equity by investing $,8,000 into the business, what will be the effect on Assets?

Increase by $8,000

Isabelle owns stock in several companies that she is responsible for auditing. Which key principle of ethics is Isabelle not adhering to?

Independence

If the beginning prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the work sheet is to debit:

Insurance Expense and credit Prepaid Insurance $1,200.

The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The correct adjusting entry will be to debit:

Insurance Expense and credit Prepaid Insurance $1,500.

If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the work sheet is to debit:

Insurance Expense and credit Prepaid Insurance $2,200.

By demonstrating truthfulness and adhering to all financial policies Vanessa is demonstrating which key principle of ethics in accounting?

Integrity

What would the appropriate source document be for the following transaction: Billed DLC Entertainment for services sold services on account?

Invoice

Which statement below does not apply to the payback period?

It favors projects that have a high profitability over time

Which limitation applies specifically to the average rate of return?

It ignores the timing and pattern of cash flow

Michael is preparing the closing entries for his company. He has closed all the income statement accounts that have a credit balance. What is the NEXT step that he will perform?

Journalize an entry to close income statement accounts that have a debit balance

Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT?

Journalize an entry to close the owner's drawing account

Which of the following is not a financial performance ratio

Labor Turnover Rate

Factors that affect a multinational company's investment decision are least likely to include

Leadership and management styles

What does the L in D.E.A.D. C.O.I.L. stand for?

Liabilities

BLANK+BLANK=BLANK

Liabilities+Owner's Equity (Capital)=Assets

Accounts Payable. Asset, liability, owner's equity, or revenue?

Liability

Accounts Receivable. Asset, liability, owner's equity, or revenue?

Liability

The legal responsibility of a business for the money it owes to other parties due in more than 12 months' time is called

Long-term liabilities

Which of the following is most likely to improve a firm's cash flow position?

Longer credit periods

Which business situation would most suit the payback period of investment appraisal?

Manufacturing processes where technology changes frequently

The process to formulate appropriate strategies and prepare activities to meet objectives is

Marketing Planning

Results from surveys represented by statistics may include:

Mean, Mode, and Median

What would be the appropriate source document for the following transaction: Purchased supplies on account from Donaldson Supply Co.?

Memorandum

The ABC Manufacturing Company's Income Statement worksheet shows total debits of $600 and total credits of $750. ABC Manufacturing Company has a:

Net income of $150.

On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a:

Net income of $400.

On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a:

Net loss of $250.

Small/ specific part of a larger market vs. products standardized and sold in large quantities

Niche, Mass

Sophia is an accountant who is responsible for auditing internal departments within her company. She knows that some of her friends do not follow company financial policies and that their departments are less efficient due to their actions. By not including this information in her reports what principle of accounting ethics has Sophia violated?

Objectivity

Which of the following is a CURRENT liability?

Overdrafts

Owner's Capital. Asset, liability, owner's equity, or revenue?

Owner's Equity

Owner's Drawing. Asset, liability, owner's equity, or revenue?

Owner's Equity

What account classification do Capital and Drawing both share?

Owner's Equity

What does the O in D.E.A.D. C.O.I.L. stand for?

Owner's Equity

Which account type would Allen Wright's Equity and Allen Wright's Drawing be classified as?

Owner's Equity

The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit:

Owner's equity account, credit drawing account for $275.

Mary is closing the income summary account. Her company had a net loss of $2,000. The correct journal entry is to debit:

Owner's equity, and credit Income Summary, $2,000.

Which of the following investment appraisal techniques uses time as its unit of measurement

Payback Period

Which investment appraisal method allows a firm to see whether it will break-even on the purchase of a fixed asset before it needs to be replaced

Payback period

Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?

Prepare the Liability section.

Calculating the return on capital employed (ROCE) provides information on a firm's

Profitability

The net profit margin can be used to identify a firm's

Profitability

Which of the following is an example of investment in a business context?

Purchasing new machinery

Marketing Planning should include all of the following except:

Ratio analysis

What would be the appropriate source document for the following transaction: Received Cash from the owner as an investment?

Receipt

William has almost finished updating the Supplies account at the end of the month. He has transferred all of the information in the General Journal to the General Ledger. What is the LAST step for William to do?

Record an account number in the journal.

Mike is posting journal entries to the General Ledger. He has just calculated the new account balance in the credit column for Sales. What is the NEXT step in the posting procedure?

Record the account number that the entry was posted to in the journal in the post reference column.

In preparing adjustment entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT?

Record the debit amount in the General Debit column

The ratio that measures a firm's profit in relation to its size is called the

Return on capital employed

Sales. Asset, liability, owner's equity, or revenue?

Revenue

Which type of account is Sales classified as?

Revenue

Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct column. What will he do NEXT?

Rule a single line below the last amount in each column

The Sales account has a balance of $3,875. To close the Sales account, debit:

Sales $3,875 and credit Income Summary $3,875.

If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the work sheet is to debit:

Supplies Expense and credit Supplies $1,500.

If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the work sheet is to debit:

Supplies Expense and credit Supplies $1,500.

The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting entry will be to debit:

Supplies Expense and credit Supplies $100.

Data from survey results must be analyzed and presented, which format is acceptable?

Tables, Line Graphs

The market segment to which a particular product is aimed is called a

Target Market

Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be?

The Total Assets should equal Total Liabilities plus Owner's Equity.

Which quantitative factor applies to a firm considering investing in a new computerized stock control system?

The firm's cash flow position

Working capital can be defined as

The money available for daily operations of a business

Consumer markets are the products directly aimed at individuals and households. True or False?

True

Marketing is concerned with selling goods and services to consumers. True or False?

True

Markets can exist without physical locations. True or False?

True

Factors making your company's product unique...designed to motivate customers to buy is know as:

Unique Selling Point

The use of social media sites or text messages to increase brand awareness or sell products.

Viral marketing

Systems Skills fits into which skills category

Workplace Skills

Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing Trial Balance" in the heading section, what will he do NEXT?

Write the account titles of all general ledger accounts that have balances in the Account Title column

John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?

Write the balance of each expense account.

When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?

Write the name of the company.

On the last day of April, Jack prepared the adjusting entries for his company. He has written "Adjusting Entries" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT?

Write the title of the account debited in the Account Title column

Which category in a Boston Matrix describes a product that is in a high growth market but is not meeting market growth sales expectations?

a problem child/question mark

Any output sold ______ the break-even point will generate a _____ for a business

above, profit

Promotions that are visual & auditory are known as:

above-the-line

Which of the following would NOT be classified as a current asset?

accounts payable

Possible strategies to reverse the decline in sales of a product include

add features to the product such as limited or special editions

When a new product is promoted and sold in a limited geographical area to determine customer reaction and sales figures it is called

add features to the product such as special or limited editions

Which of the following is NOT a fixed cost for a restaurant?

air conditioning bills

Interest

an amount paid for the use of money for a period of time

Promotions that are tactile are known as:

below-the-line

Direct mail flyers, in-store samples, and coupons are all examples of

below-the-line promotion

If a business raises its price, which of the following is MOST likely to occur?

break-even point will fall

Which of the following is considered a revenue expenditure?

buying office supplies

A service product

cannot be returned

What can be determined by calculating the selling price of a product and minus its variable costs?

contribution cost

Selecting people because of ease of availability or volunteered is which type of sampling method

convenience

Overheads are best described as

costs from non production activities

Reasons to promote include all of the following except:

create a price war

It is recommended that businesses have additional capital set aside to

create new products, cover unexpected expenses such as repairs, and remain in business during temporary decline in sales

Does accounts payable have a normal debit or credit balance?

credit

Does owner's capital have a normal debit or credit balance?

credit

Does revenue have a normal debit or credit balance?

credit

Working capital is calculated by

current assets-current liabilities

Does accounts receivable have a normal debit or credit balance?

debit

Does cash have a normal debit or credit balance?

debit

Does drawing have a normal debit or credit balance?

debit

Does expenses have a normal debit or credit balance?

debit

Does prepaid insurance have a normal debit or credit balance?

debit

Does supplies have a normal debit or credit balance?

debit

Selling accounts receivable is also known as

debt factoring

Which statement below best describes hire purchase?

differs from leasing in ownership occurs with the last payment

Costs that are incurred as a result of production are known as

direct costs

Which of the following is NOT part of promotion?

distribution

Current assets do NOT include

dividends

Firms may choose to SELL which item to generate working capital?

fixed assets

Costs which are totally independent of the level of output are known as

fixed costs

Local governments may encourage companies to locate in certain areas of a city or encourage new companies to relocate to their communities by providing a certain type of funding called a

grant

Which of the financing options would be considered a medium-term solution?

hire purchase

Features of the "introduction" stage of a product's life cycle do NOT include

initial product market research

Examples of variable costs for a motor vehicle manufacturer do NOT include

insurance costs

An advantage of using internal funds to purchase a new office building could include

it is capital expenditure, it does not reduce the value of assets

Money owed to other people or organizations is known as

liabilities

Demographic segmentation can be done by all the following EXCEPT:

lifestyle

Elements to include to determine the Right Media to Use include all of the following except:

location

Within the channel of distribution, which channel member is typically produces goods?

manufacturer

Which of the following is an example of a single-intermediary channel of distribution?

manufacturer sells to a retailer who sells to a customer

A brand that is owned by the producer of a product is known as

manufacturer's brand

One purpose of using market skimming is to

maximize short-term profit margins

Creating a means of finance for third-world countries or poverty stricken areas by providing funding for business opportunities with little or no interest bearing charges is referred to as

micro finance

Accounts payable means

money owed to traders

Which of the following is a primary data source?

observations

Which short-term pricing strategy can be used by a firm that is trying to establish a market presence?

penetration pricing

Advertisements that attempt to get customers to purchase a product are known as

persuasive

Which of the following is part of the marketing mix for goods?

place

The pricing strategy that involves a firm setting prices so low that smaller competitors are forced out of the market is known as

predatory pricing

___________ occurs when a firm charges different prices to different groups of customers for essentially the same product.

price discrimination

Walmart is considered the market leader in discount stores. If Walmart cuts the price of toothpaste, other discount stores also reduce the price of toothpaste. Walmart is considered the

price leader

Contribution per unit is calculated by using the formula

price-variable costs

Product oriented marketing means

producing and marketing products that the firm believes will sell

Which type of branding is used when each product line within a company has its own brand name, image, and identity?

product brand

The payback period is least favorable as a measure of investment appraisal when

projects are expected to return a profit in the medium to long term

The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade consumers to buy is which component of the 4P's?

promotion

The _________________ is the combination of techniques that a firm uses to communicate the benefits of its product to customers.

promotional mix

McDonald's introduced salads to its menu to target the more health-aware customer. This is an example of which type of segmentation?

psychographic

Below-the-line promotion are all of the following except:

purchasing communication with the consumer - AKA - advertising

Market research that gathers the opinions, ideas, views and thoughts of consumers in a non-statistical manner is known as

quantitative research

Which method of sampling gives each member of the public an equal chance of being selected as part of a sample?

random

Which of the following is a possible reason for an increase in the sales of a product?

redesigned packaging increase the emotional value of the product

Market orientation is a marketing strategy that involves

researching consumers' needs in order to develop new product ideas

Within the channel of distribution, which channel member is typically used to sell products to an end user?

retailer

Which of the following items is LEAST likely to be a direct cost?

sales

Sales promotion can be best described as

selling products at reduced prices

Contribution per unit is calculated by ________ price minus the ______ costs.

selling, variable

Which of the following is NOT a source of external financing for a sole trader?

share capital

Above-the-line promotion are all of the following except:

short-term incentives to encourage consumers to purchase the product

Organizations trying to market healthier diets and eating habits are most likely to use

social marketing

When an organization pays to be associated with a particular event or cause (such as the World Cup) in return for prominent publicity, this is known as

sponsorship

To encourage companies to produce products that may not be profitable or in high demand, government may pay companies. This is referred to as a

subsidy

Snowballing is

surveys or interviews carried out with individuals who then suggest other friends, family, or colleagues to increase the sample size

Maturity value

the amount that is due on the maturity of a note

What is market growth?

the change in the total size of the market over a period of time

Secondary data has which advantage over primary data?

the data already exists

Which of the following statements apply to the concept of "margin of safety" when margin of safety is positive?

the firm operates at a level higher than its break-even

"Decline" is

the last stage of a product's life cycle when sales fall sharply

The difference between quantitative and qualitative market research is that

the quantitative research can be statistically analyzed

Which of the following is a drawback to a business that issues debentures?

the value of liabilities increases

Semi-variable costs differ from fixed and variable costs in which way?

they contain a fixed component as well as a component that fluctuates

Assets

things you own

Why might a business carry out primary research?

to discover their customers needs and wants

Total contribution is the difference between

total revenue and total variable costs

A current liability includes

trade credit

Below-the-line promotion does NOT include

tv advertising

Which concept refers to any distinctive aspect or feature of a product that differentiates it from others that might be available on the market?

unique selling point

What is debt financing?

using borrowed money to finance business activity

Identify the indirect cost from the list

utility bills

The size of a market can be measured in terms of

volume of sales

Owner's Equity

what you are worth

Liabilities

what you owe

There must be sufficient finance to pay for the daily running of the business. This money is known as

working capital