Accounting

Which of the following is not part of the recording process?

Preparing a trial balance

If a customer returns goods for credit, the selling company normally makes an entry in the

general journal

During 2014, Bruske Company's assets decreased $50,000 and its liabilities decreased $90,000. Its owner's equity therefore:

increased $40,000.

The proper order of the following steps in the accounting cycle is

journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries.

When goods are purchased for resale by a company using a periodic inventory system:

purchases on account are debited to Purchases

Net Income will result in a period when

revenues excede expenses

Accounting Equation

A=L+E

Which of the following events is not recorded in the accounting records

An employee is terminated.

Postings from the purchases journal to the subsidiary ledger are generally made

daily

Before posting a payment of $5,000, the Accounts Payable of Senator Company had a normal balance of $16,000. The balance after posting this transaction was:

$11,000

The trial balance of Jeong Company had accounts with the following normal balances: Cash $5,000, Service Revenue $85,000, Salaries and Wages Payable $4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000, Owner's Capital $42,000; Owner's Drawings $15,000;Equipment $61,000. In preparing a trial balance, the total in the debit column is

$131,000

As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31, 2014. This count did not take into consideration the following facts: Rogers Consignment store currently has goods worth $35,000 on its sales floor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Railway on January 3. Determine the correct amount of inventory that Railway should report

$215,000

King Company has sales of $150,000 and cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is

$30,000

If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, cost of goods sold is

$390,000

A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is

$686.

If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, the gross profit is

$90,000

Poppins Company has the following: Units Unit Cost Inventory, Jan. 1 8,000 $11 Purchase, June 19 13,000 12 Purchase, Nov. 8 5,000 13 If Poppins has 9,000 units on hand at December 31, the cost of the ending inventory under FIFO is

113,000

Which of the following appears on both a single-step and a multiple-step income statement?

Cost of goods sold

Payment of an account payable affects the components of the accounting equation in the following way

Decreases assets and decreases liabilities

statements about the accrual basis of accounting

Events that change a company's financial statements are recorded in the periods in which the events occur

Which of the following should not be included in the physical inventory of a company

Goods held on consignment from another company

Steps in the Accounting Cycle

Identification, Recording, Communication

Fraud Triangle Elements

Opportunity, Segregation of Duties, Rationalization

statements about the accrual basis of accounting

Revenue is recognized in the period in which services are performed

On December 31, Kevin Hartman Company correctly made an adjusting entry to recognize $2,000 of accrued salaries payable. On January 8 of the next year, total salaries of $3,400 were paid. Assuming the correct reversing entry was made on January 1, the entry on January 8 will result in a credit to Cash $3,400 and the following debit(s)

Salaries and Wages Expense $3,400

statements about the accrual basis of accounting

This basis is in accord with generally accepted accounting principles

In the unadjusted trial balance of its worksheet for the year ended December 31, 2014, Knox Company reported Equipment of $120,000. The year-end adjusting entries require an adjustment of $15,000 for depreciation expense for the equipment. After adjustment, the following adjusted amount should be reported

a debit of $120,000 for Equipment in the balance sheet column.

A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as

a long-term investment