Accounting Final: Chapters 1-12 (University Of North Georgia Spring2017)
(EXAM 3 ) Which document establishes an initial record of the receipt of the inventory? a. vendor's invoice b. receiving report c. purchase order d. petty cash voucher
b. receiving report
(EXAM 3 ) Which document authorizes the purchase of the inventory from an approved vendor? a. the petty cash voucher b. the purchase order c. the vendor's invoice d. the receiving report
b. the purchase order
(Exam 4) After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable? a. $340,000 b. $51,000 c. $391,000 d. $289,000
d. $289,000
(Exam 4) The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is? a. $44,000 b. $40,000 c. $43,600 d. $40,400
d. $40,400
(Exam 4) On October 1, Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a. $900 b. $1,800 c. $0 d. $450
d. $450
(Exam 1) Identify which of the following accounts would appear on a balance sheet with either "Yes" or "No". (a) Cash (b) Fees Earned (c) Common Stock (d) Wages Payable (e) Rent Expense (f) Prepaid Advertising (g) Land
(a) Cash-Yes (b) Fees Earned-No (c) Common Stock-Yes (d) Wages Payable-Yes (e) Rent Expense-No (f) Prepaid Advertising-Yes (g) Land-Yes
(Exam 1) From the following list of items taken from Lamar's accounting records, identify those that would appear on the Income Statement with either "Yes" or "No". (a) Rent Expense (b) Land (c) Common Stock (d) Fees Earned (e) Dividends (f) Wages Expense (g) Investment
(a) Rent Expense -yes (b) Land -no (c) Common Stock -no (d) Fees Earned -yes (e) Dividends -no (f) Wages Expense -yes (g) Investment -no
(Exam 2) Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b) current liability, (c) revenue, or (d) expense: 1. Supplies 2. Unearned Fees 3. Prepaid Advertising 4. Advertising Expense 5. Supplies Expense 6. Prepaid Insurance 7. Accounts Payable 8. Fees Earned
1. Supplies-current asset 2. Unearned Fees-current liability 3. Prepaid Advertising-current asset 4. Advertising Expense-expense 5. Supplies Expense-expense 6. Prepaid Insurance-current asset 7. Accounts Payable-current liability 8. Fees Earned-revenue
(Exam 2) Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense: 1. Truck 2. Accumulated Depreciation 3. Telephone Expense 4. Fees Earned 5. Wages Payable 6. Prepaid Insurance 7. Office Supplies 8. Dining Expense 9. Unearned Rent
1. Truck-Property, Plant, and Equipment 2. Accumulated Depreciation-Property, Plant, and Equipment 3. Telephone Expense-Expense 4. Fees Earned-Revenue 5. Wages Payable-Current Liability 6. Prepaid Insurance-Current Asset 7. Office Supplies-Current Asset 8. Dining Expense-Expense 9. Unearned Rent-Current Liability
(Exam 1) Asset - A Revenue - R Liability - L Expense - E None of the above - N (b) In the second column, indicate the increase side of each account by inserting "Dr." for Debit or "Cr." for Credit. (1) Supplies (2) Notes Receivable (3) Fees Earned (4) Retained Earnings (5) Accounts Payable (6) Salaries Expense (7) Common stock (8) Accounts Receivable (9) Equipment (10) Notes Payable
Asset - A Revenue - R Liability - L Expense - E None of the above - N "Dr." for Debit or "Cr." for Credit. (1) Supplies-a,dr. (2) Notes Receivable-a,dr. (3) Fees Earned- r,cr. (4) Retained Earnings- n,cr. (5) Accounts Payable- l,cr. (6) Salaries Expense- e,dr. (7) Common stock- n,cr. (8) Accounts Receivable- a,dr. (9) Equipment- a,dr. (10) Notes Payable- l,cr.
(Exam 3) A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom; FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? a. $12,285 b. $11,385 c. $10,480 d. $11,500
a. $12,285
(EXAM 5) A building with an appraisal value of $154,000 is made available at an offer price of $172,000. The purchaser acquires the property for $40,000 in cash, a 90-day note payable for $45,000, and a mortgage amounting to $75,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is? a. $160,000 b. $172,000 c. $154,000 d. $120,000
a. $160,000
(EXAM 5) Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of? a. $45,000 b. $0 c. $13,500 d. $31,500
a. $45,000
(Exam 4) A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit to? a. Cash for $180 b. Cash Over and Short for $3 c. Cash for $20 d. Petty Cash for $190
a. Cash for $180
(EXAM 3 ) If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as? a. FOB shipping point b. FOB n/30 c. FOB buyer d. FOB destination
a. FOB shipping point
(EXAM 3) What is the normal balance of the following accounts? a. Sales Tax Payable b. Merchandise Inventory c. Delivery Expense d. Cost of Merchandise Sold e. Customer Refunds Payable f. Estimated Returns Inventory g. Sales
a. Sales Tax Payable-Credit b. Merchandise Inventory-Debit c. Delivery Expense -Debit d. Cost of Merchandise Sold -Debit e. Customer Refunds Payable -Credit f. Estimated Returns Inventory -Debit g. Sales-Credit
(EXAM 5) Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms? a. Wage and Tax Statement (Form W-2) b. Employer's Quarterly Federal Tax Return (Form 941) c. Employee's Withholding Allowance Certificate (W-4) d. 401k plans.
a. Wage and Tax Statement (Form W-2)
(EXAM 5) Current liabilities are due? a. and payable within one year b. and receivable within one year c. but not payable for more than one year d. but not receivable for more than one year
a. and payable within one year
(EXAM 3) If merchandise sold on account is returned to the seller, the seller acknowledges the return by issuing a? a. credit memo b. sales invoice c. purchase invoice d. debit memo
a. credit memo
(EXAM 5) A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed? a. defined contribution b. funded c. unfunded d. defined benefit
a. defined contribution
(EXAM 4) The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the...? a. employee's earnings record b. payroll check c. payroll register d. employer's earnings record
a. employee's earnings record
(EAXAM 3) Cost flow is in the reverse order in which costs were incurred when using? a. last-in, first-out b. first-in, first-out c. weighted average d. average cost
a. last-in, first-out
(EXAM 3) Ending inventory is made up of the oldest purchases when a company uses? a. last-in, first-out b. retail method c. average cost d. first-in, first-out
a. last-in, first-out
(EXAM 3) Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity? a. net income is overstated, assets are overstated, and owner's equity is overstated b. net income is overstated, assets are overstated, and owner's equity is understated c. net income is understated, assets are understated, and owner's equity is understated d. net income is understated, assets are understated, and owner's equity is overstated
a. net income is overstated, assets are overstated, and owner's equity is overstated
(EXAM 3) FIFO reports higher gross profit and net income than the LIFO method when? a. prices are increasing b. prices remain stable c. prices are reduced by 50% d. prices are decreasing
a. prices are increasing
(EXAM 3) Merchandise is sold for cash. The selling price of the merchandise is $6,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include a credit to? a. sales tax payable for $420 b. cash for $6,000 c. sales for $5,580 d. sales for $6,240
a. sales tax payable for $420
(EXAM 3) Inventory shrinkage is recorded when? a. there is a difference between a physical count of inventory and inventory records b. merchandise purchased from a seller is incomplete or short c. merchandise is returned to a seller d. merchandise is returned by a buyer
a. there is a difference between a physical count of inventory and inventory records
(Exam 1) Match the following items to the financial statement where they can be found. (Hint: Some of the items can be found on more than one financial statement.) a.) Balance Sheet b.) Income Statement c.) Statement of Cash Flows d.) Retained Earnings Statement 1. Dividends 2. Revenues 3. Supplies 4. Land 5. Accounts Payable 6. Accounts Receivable 7. Operating Activities 8. Wages Expense 9. Net Income 10. Cash
a.) Balance Sheet b.) Income Statement c.) Statement of Cash Flows d.) Retained Earnings Statement 1. Dividends -D & C 2. Revenues -B 3. Supplies -A 4. Land -A 5. Accounts Payable -A 6. Accounts Receivable -A 7. Operating Activities -C 8. Wages Expense -B 9. Net Income -B & D 10. Cash -A & C
(Exam 4) Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the Bad Debt Expense for the year? a.) debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600 b.) debit Allowance for Doubtful Accounts, $43,200; credit Bad Debt Expense, $43,200 c.) debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600 d.) debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200
a.) debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600
(Exam 2) Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30? a.) debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000 b.) debit Prepaid Insurance, $11,000; credit Insurance Expense, $11,000 c.) debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000 d.) debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000
a.) debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000
(Exam 2) The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is? a.) debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 b.) debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 c.) debit Rent Expense, $24,000; credit Prepaid Rent, $8,000 d.) debit Prepaid Rent, $8,000; credit Rent Expense, $8,000
a.) debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
(Exam 1) Ramos Repair Company is paying a cash dividend. How does this transaction affect Ramos Repair Company's accounting equation? a.) decrease in assets (Cash) and decrease in stockholders' equity (Dividends) b.) decrease in assets (Cash) and decrease in liabilities (Accounts Payable) c.) increase in assets (Cash) and decrease in stockholders' equity (Dividends) d.) increase in assets (Accounts Receivable) and decrease in assets (Cash)
a.) decrease in assets (Cash) and decrease in stockholders' equity (Dividends)
(Exam 2) The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. Unearned Revenue (d)7,500 Fees Earned (c)7,500 ???????????????? a.)Record fees earned at the end of the month. b.)Record fees that have not been earned at the end of the month. c.)Record payment of fees earned. d.)Record payment of fees to be earned.
a.)Record fees earned at the end of the month.
(Exam 1) A credit balance in which of the following accounts would indicate a likely error? a.)Salary Expense b.)Fees Earned c.)Accounts Payable d.)Common Stock
a.)Salary Expense
(Exam 1) The balance of an account is determined by? a.)adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum b.)adding all of the debits to all of the credits c.)always subtracting the debits from the credits d.)always subtracting the credits from the debits
a.)adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum
(Exam 2) Unearned Fees appear on the? a.)balance sheet as a current liability b.)balance sheet in the current assets section c.)balance sheet in the shareholders' equity section d.)income statement as revenue
a.)balance sheet as a current liability
(Exam 4) What is the type of account and normal balance of Allowance for Doubtful Accounts? a.)contra asset, credit b.)asset, credit c.)contra asset, debit d.)asset, debit
a.)contra asset, credit
(Exam 3) The arrangements between buyer and seller as to when payments for merchandise are to be made are called? a.)credit terms b.)cash on demand c.)net cash d.)gross cash
a.)credit terms
(Exam 4) A $167 petty cash fund has cash of $15 and receipts of $157. The journal entry to replenish the account would include a? a.)credit to Cash Short and Over for $5 b.)debit to Cash for $15 c.)credit to Cash for $167 d.)credit to Petty Cash for $157
a.)credit to Cash Short and Over for $5
(Exam 4) A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. 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
a.)debit Cash; credit Accounts Payable
(Exam 2) What effect will this adjusting journal entry have on the accounting records? Supplies Expense (d)760 Supplies (c)760 a.)decrease net income b.)increase income c.)increase assets d.)decrease expenses
a.)decrease net income
(Exam 4) Selling receivables is called? a.)factoring b.)a factor c.)sold receivables d.)sales revenue
a.)factoring
(Exam 1) Debts owed by a business are referred to as? a.)liabilities b.)accounts receivables c.)expenses d.)stockholders' equity
a.)liabilities
(Exam 3) Excess inventory results in all of the following except? a.)lost sales b.)increased risk of loss due to damage c.)tied-up funds that could be used to improve operations d.)increased storage expense
a.)lost sales
(Exam 4) The amount of the promissory note plus the interest earned on the due date is called the? a.)maturity value b.)issuance value c.)interest value d.)face value
a.)maturity value
(Exam 1) Goods purchased on account for future use in the business, such as supplies, are called a.)prepaid expenses b.)revenues c.)prepaid liabilities d.)liabilities
a.)prepaid expenses
(Exam 1) Profit is the difference between? a.)the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services b.)the assets purchased with cash contributed by the owner and the cash spent to operate the business c.)the incoming cash and outgoing cash d.)assets and liabilities
a.)the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services
(Exam 1) The assets section of the balance sheet normally presents assets in? a.)the order in which they will be converted into cash or used in operations b.)the order of largest to smallest dollar amounts c.)alphabetical order d.)the order of smallest to largest dollar amount
a.)the order in which they will be converted into cash or used in operations
(Exam 4) Notes or accounts receivables that result from sales transactions are often called? a.)trade receivables b.)nontrade receivables c.)sales receivables d.)merchandise receivables
a.)trade receivables
(Exam 2) Using accrual accounting, expenses are recorded and reported only? a.)when they are incurred, whether or not cash is paid b.)if they are paid before they are incurred c.)if they are paid after they are incurred d.)when they are incurred and paid at the same time
a.)when they are incurred, whether or not cash is paid
(Exam 1) Indicate whether each of the following accounts represents an asset, liability, or stockholders' equity: a.Accounts Payable b.Wages Expense c.Common Stock d.Accounts Receivable e.Dividends f.Land
a.Accounts Payable -Liability b.Wages Expense -Stockholders' equity c.Common Stock -Stockholders' equity d.Accounts Receivable -Asset e.Dividends -Stockholders' equity f.Land -Asset
(EXAM 5) Martin Jackson receives an hourly wage rate of $30, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson? a. $1,470.00 b. $1,009.75 c. $460.25 d. $1,097.95
b. $1,009.75
(Exam 4) At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, $120 of previously written off accounts are reinstated and accounts totaling $740 are written-off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be a. $740 b. $140 c. $760 d. $120
b. $140
(Exam 2) Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. The company's monthly rent is $700. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is a. $700 b. $2,100 c. $1,400 d. $2,800
b. $2,100
(EXAM 5) Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be? a. $250 b. $20,250 c. $21,000 d. $1,000
b. $20,250
(Exam 1) Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for $15,000 in cash and a note payable of $20,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is a. $30,000 b. $35,000 c. $45,000 d. $15,000
b. $35,000
(Exam 2) The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. $18,000 b. $54,000 c. $90,000 d. $36,000
b. $54,000
(EXAM 5) An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? a. $568.74 b. $601.50 c. $574.90 d. $660.00
b. $601.50
(EXAM 5) A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of? a. $85,000 b. $93,000 c. $82,000 d. $90,000
b. $93,000
(EXAM 3) If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are? a. n/30 b. FOB shipping point c. consigned d. FOB destination
b. FOB shipping point
(Exam 4) Jefferson uses the percent of method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct? a. Bad debt expense is estimated to be $11,100. b. Uncollectible accounts are estimated to be $111,000. c. Uncollectible accounts are estimated to be $55,500. d. Bad debt expense is estimated to be $5,550.
b. Uncollectible accounts are estimated to be $111,000.
(EXAM 3) Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as? a. sales returns b. cash sales c. sales on account d. sales when the credit card company remits the cash
b. cash sales
(EXAM 3) When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is: a. debit Cost of Merchandise Sold; credit Sales b. debit Cost of Merchandise Sold; credit Merchandise Inventory c. debit Merchandise Inventory; credit Cost of Merchandise Sold d. No journal entry is made to record the cost of merchandise sold.
b. debit Cost of Merchandise Sold; credit Merchandise Inventory
(EXAM 3) 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. debit to Merchandise Inventory c. credit to Customer Refunds Payable d. credit to Merchandise Inventory
b. debit to Merchandise Inventory
(EXAM 3) Cost flow is in the order in which costs were incurred when using? a. weighted average b. first-in, first-out c. average cost d. last-in, first-out
b. first-in, first-out
(EXAM 5) The total earnings of an employee for a payroll period is referred to as? a. take-home pay b. gross pay c. pay net of taxes d. net pay
b. gross pay
(EXAM 3) The inventory system employing accounting records that continuously disclose the amount of inventory is called? a. periodic b. perpetual c. retail d. physical
b. perpetual
(Exam 2) Use the adjusted trial balance for Stockton Company below to answer the questions that follow. Stockton Company Adjusted Trial Balance December 31 Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation f 1,100 Accounts Payable 1,900 Notes Payable 4,300 Common Stock 1,000 Retained Earnings 12,940 Dividends 790 Fees Earned 9,250 Wages Expense 2,500 Rent Expense 1,960 Utilities Expense 775 Depreciation Expense 250 Miscellaneous Expense 185 Totals 30,490 30,490 Determine the retained earnings ending balance. a.) $6,480 b.) $15,730 c.) $21,400 d.) $12,150
b.) $15,730
(Exam 2) The supplies account has a balance of $4,400 at the beginning of the year and was debited during the year for $2,400, representing the total of supplies purchased during the year. If $400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is a.) $2,000 b.) $6,400 c.) $6,800 d.) $400
b.) $6,400
(Exam 4) Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year? a.) debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200 b.) debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200 c.) debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600 d.) debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600
b.) debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200
(Exam 2) Smokey Company purchases a one-year insurance policy on July 1 for $3,600. The adjusting entry on December 31 is? a.) debit Insurance Expense, $1,500; credit Prepaid Insurance, $1,500 b.) debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800 c.) debit Prepaid Insurance, $1,800; credit Cash, $1,800 d.) debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100
b.) debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800
(Exam 2) The balance in the supplies account before adjustment at the end of the year is $6,250. The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be? a.) debit Supplies, $4,750; credit Supplies Expense, $4,750 b.) debit Supplies Expense, $4,750; credit Supplies, $4,750 c.) debit Supplies, $1,500; credit Supplies Expense, $1,500 d.) debit Supplies Expense, $1,500; credit Supplies, $1,500
b.) debit Supplies Expense, $4,750; credit Supplies, $4,750
(Exam 1) On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller's counteroffer of $115,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service's records? a.)$108,000 b.)$115,000 c.)$95,000 d.)$140,000
b.)$115,000
(Exam 1) Office supplies purchased by Janer's Cleaning Service on account were returned. Which of the following entries for Janer's Cleaning Service records this transaction? a.)Cash, debit; Office Supplies, credit b.)Accounts Payable, debit; Office Supplies, credit c.)Office Supplies, debit; Accounts Receivable, credit d.)Office Supplies, debit; Accounts Payable, credit
b.)Accounts Payable, debit; Office Supplies, credit
(Exam 4) Dalton Company uses the allowance method to account for uncollectible receivables. Dalton has determined that the Irish Company account is uncollectible. To write off this account, Dalton should debit? a.)Bad Debt Expense and credit Allowance for Doubtful Accounts b.)Allowance for Doubtful Accounts and credit Accounts Receivable c.)Accounts Receivable and credit Allowance for Doubtful Accounts d.)Bad Debt Expense and credit Accounts Receivable
b.)Allowance for Doubtful Accounts and credit Accounts Receivable
(Exam 1) Which of the following is not a business transaction? a.)Erin provided services to customers earning fees of $600. b.)Erin pays her monthly personal credit card bill. c.)Erin, the CEO, buys $15,000 in stock in a bank account in the name of Bob's Lawn Service. d.)Erin purchased hedge trimmers for Bob's Lawn service agreeing to pay the supplier next month.
b.)Erin pays her monthly personal credit card bill.
(Exam 4) Which one of the following reflects a weak internal control system? a.)a single employee is responsible for comparing a receiving report to an invoice b.)a single employee is responsible for collecting and recording of cash c.)all employees must take their vacations d.)all employees are well supervised
b.)a single employee is responsible for collecting and recording of cash
(Exam 2) Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n)? a.)liability b.)asset c.)stockholders' equity account d.)contra liability
b.)asset
(Exam 2) The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed? a.)historical cost b.)book value c.)market value d.)contra asset
b.)book value
(Exam 1) A list of the accounts used by a business is called the? a.)debit listing b.)chart of accounts c.)journal d.)T chart
b.)chart of accounts
(Exam 2) The classified balance sheet will show which asset subsections? a.)current assets and other equity b.)current assets and property, plant, and equipment c.)current liabilities and short-term assets d.)other revenues and property, plant and equipment
b.)current assets and property, plant, and equipment
(Exam 4) 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
b.)debit Accounts Payable; credit Cash
(Exam 2) The entry to adjust for the cost of supplies used during the accounting period is? a.)debit Supplies; credit Stockholders' Equity b.)debit Supplies Expense; credit Supplies c.)debit Accounts Payable; credit Supplies d.)debit Stockholders' Equity; credit Supplies
b.)debit Supplies Expense; credit Supplies
(Exam 4) Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a? a.)credit to Accounts Receivable b.)debit to Accounts Receivable c.)credit to Bad Debt Expense d.)debit to Allowance for Doubtful Accounts
b.)debit to Accounts Receivable
(Exam 4) Other receivables includes all of the following except? a.)taxes receivable b.)notes receivable c.)receivables from employees d.)interest receivable
b.)notes receivable
(Exam 1) Which of the following errors could cause the trial balance totals to be unequal? a.)recording the same erroneous amount for both the debit and the credit parts of a transaction b.)posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted c.)recording the same transaction more than once d.)failure to record a transaction or to post a transaction
b.)posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted
(EXAM 3) A retailer purchases merchandise with a catalog list price of $30,000. The retailer receives a 15% trade discount and credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period? a. $30,000 b. $29,400 c. $24,990 d. $24,900
c. $24,990
(EXAM 5) A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-output method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? a. $45,000 b. $5,000 c. $35,000 d. $21,000
c. $35,000
(Exam 4) Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of net credit sales. If net credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivables is? a. $9,500 b. Cannot be determined c. $9,000 d. $8,500
c. $9,000
(EXAM 3) The inventory costing method that reports the most current prices in ending inventory is? a. LIFO b. average cost c. FIFO d. specific identification
c. FIFO
(EXAM 3) The inventory costing method that reports the earliest costs in ending inventory is? a. weighted average b. specific identification c. LIFO d. FIFO
c. LIFO
(EXAM 3 ) When merchandise sold is assumed to be in the order in which the purchases were made, the company is using? a. average cost b. last-in, first-out c. first-in, first-out d. first-in, last-out
c. first-in, first-out
(Exam 4) A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account. The face value of the note is/ a.)$6,860 b.)$7,840 c.)$7,000 d.)$7,140
c.)$7,000
(Exam 1) Of the following, which is true about assets? a.)Assets are the result of selling products or services to customers. b.)Assets include only physical items. c.)Assets include both physical and intangible items. d.)Assets are the personal property of the stockholders of the company.
c.)Assets include both physical and intangible items.
(Exam 2) Which of the following accounts will not be closed to Income Summary at the end of the fiscal year? a.)Insurance Expense b.)Utilities Expense c.)Prepaid Insurance d.)Fees Earned
c.)Prepaid Insurance
(Exam 4) A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a(n)? a.)addition to the balance per the bank statement d.)deduction from the balance per the bank statement c.)addition to the balance per the company's records d.)deduction from the balance per the company's records
c.)addition to the balance per the company's records
(Exam 4) Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account. a.)affects only income statement accounts b.)affects both balance sheet and income statement accounts c.)affects only balance sheet accounts d.)is not an acceptable practice
c.)affects only balance sheet accounts
(Exam 1) The objectivity concept requires that? a.)accounting principles meet the objectives of the Security and Exchange Commission b.)business transactions be consistent with the objectives of the entity c.)amounts recorded in the financial statements be based on independently verifiable evidence d.)the Financial Accounting Standards Board be fair and unbiased in its deliberations over new accounting standards
c.)amounts recorded in the financial statements be based on independently verifiable evidence
(Exam 4) The debit balance in Cash Short and Over at the end of an accounting period is reported as? a.)a liability on the balance sheet b.)income on the income statement c.)an expense on the income statement d.)an asset on the balance sheet
c.)an expense on the income statement
(Exam 2) Adjusting entries always include? a.)only balance sheet accounts b.)only income statement accounts c.)at least one income statement account and one balance sheet account d.)the cash account
c.)at least one income statement account and one balance sheet account
(Exam 2) Accumulated Depreciation appears on the? a.)balance sheet in the current assets section b.)balance sheet in the long-term liabilities section c.)balance sheet in the property, plant, and equipment section d.)income statement as an operating expense
c.)balance sheet in the property, plant, and equipment section
(Exam 4) Allowance for Doubtful Accounts is classified as a(n) ______ and has a normal ______ balance. a.)contra asset, debit b.)owners' equity, credit c.)contra asset, credit d.)owners' equity, debit
c.)contra asset, credit
(Exam 2) The classified balance sheet will show which liability subsections? a.)current liabilities and other liabilities b.)other liabilities and long-term liabilities c.)current liabilities and long-term liabilities d.)present liabilities and tomorrow's liabilities
c.)current liabilities and long-term liabilities
(Exam 2) The adjusting entry to record the depreciation of a building for the fiscal period is? a.)debit Building; credit Depreciation Expense. b.)debit Depreciation Expense; credit Building. c.)debit Depreciation Expense; credit Accumulated Depreciation. d.)debit Accumulated Depreciation; credit Depreciation Expense.
c.)debit Depreciation Expense; credit Accumulated Depreciation.
(Exam 2) By matching revenues and expenses in the same period in which they are incurred? a.)net income or loss will not be determined b.)net income or loss will always be overestimated c.)net income or loss will be properly reported on the income statement d.)net income or loss will always be underestimated
c.)net income or loss will be properly reported on the income statement
(Exam 4) The receivable that is usually evidenced by a formal, written instrument of credit is a(n)? a.)accounts receivable b.)income tax receivable c.)note receivable d.)trade receivable
c.)note receivable
(Exam 2) Which of the following is an example of an accrued expense? a.)supplies on hand b.)a two-year premium paid on a fire insurance policy c.)salary owed but not yet paid d.)fees received but not yet earned
c.)salary owed but not yet paid
(Exam 2) The matching concept? a.)requires that the dollar amount of debits equal the dollar amount of credits on a trial balance b.)addresses the relationship between the journal and the balance sheet c.)states that the revenues and related expenses should be reported in the same period d.)determines whether the normal balance of an account is a debit or credit
c.)states that the revenues and related expenses should be reported in the same period
(Exam 2) What is the purpose of the adjusted trial balance? a.)to verify that no adjusting journal entry has been omitted b.)to verify that all of the adjusting entries have been posted c.)to verify that the debits and credits balance d.)to verify that the net income (loss) is correctly reported
c.)to verify that the debits and credits balance
(Exam 1) A chart of accounts is? a.)usually a listing of accounts in alphabetical order b.)the same as a balance sheet c.)usually a listing of accounts in financial statement order d.)used in place of a ledger
c.)usually a listing of accounts in financial statement order
(Exam 4) Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited? a.)whenever a predetermined amount of credit sales have been made b.)when a credit sale is past due c.)when an account is determined to be worthless d.)at the end of each accounting period
c.)when an account is determined to be worthless
(EXAM 5) 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.straight-line method c.units-of-output method d.MACRS
c.units-of-output method
(EXAM 5) Thomas Martin receives an hourly wage rate of $40, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin? a. $449 b. $1,581 c. $1,730 d. $2,080
d. $2,080
(Exam 4) Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no sales returns or sales discounts during the year. After the adjusting entry, the December 31, balance in the Bad Debt Expense will be? a. $1,200 b. $7,200 c. $3,600 d. $3,000
d. $3,000
(Exam 4) The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of: a. $530 b. $640 c. $110 d. $750
d. $750
(EXAM 3 ) During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory? a. can not tell without more information b. average cost method c. LIFO method d. FIFO method
d. FIFO method
(EXAM 3 ) The inventory method that assigns the most recent costs to cost of merchandise sold is? a. weighted average b. specific identification c. FIFO d. LIFO
d. LIFO
(EXAM 3 ) Which of the following is not an example for safeguarding inventory? a. Physical devices such as two-way mirrors, cameras, and alarms. b. Matching receiving documents, purchase orders, and vendor's invoice. c. Storing inventory in restricted areas. d. Returning inventory that is defective or broken.
d. Returning inventory that is defective or broken.
(EXAM 5) The current portion of long-term debt should? a. be classified as a long-term liability b. not be separated from the long-term portion of debt c. be paid immediately d. be reclassified as a current liability
d. be reclassified as a current liability
(Exam 4) Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,000. Based on the estimate above, which of the following adjusting entries should be made? a. debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800 b. debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800 c. debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800 d. debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
d. debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
(Exam 1) Financial reports are used by? a.)creditors b.)management c.)investors d.)All of these choices are correct.
d.)All of these choices are correct.
(Exam 4) If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible? a.)Uncollectible Accounts Receivable b.)Accounts Receivable c.)Allowance for Doubtful Accounts d.)Bad Debt Expense
d.)Bad Debt Expense
(Exam 1) Which of the following is not true with a double-entry accounting system? a.)The sum of all debits is always equal to the sum of all credits in each journal entry. b.)The accounting equation remains in balance. c.)Every transaction affects at least two accounts. d.)Each business transaction will have two debits.
d.)Each business transaction will have two debits.
(Exam 1) Which of the following statements is not true about liabilities? a.)Cash received before a service is performed creates a liability. b.)Liabilities are debts owed to outsiders. c.)Account titles of liabilities often include the term "payable." d.)Liabilities do not include wages owed to employees of the company.
d.)Liabilities do not include wages owed to employees of the company.
(Exam 2) Which of the following accounts ordinarily appears in the post-closing trial balance? a.)Supplies Expense b.)Dividends c.)Fees Earned d.)Unearned Rent
d.)Unearned Rent
(Exam 1) The balance of an account is determined by? a.)always subtracting the credits from the debits b.)always subtracting the debits from the credits c.)adding all of the debits to all of the credits d.)adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum
d.)adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum
(Exam 4) A bank reconciliation should be prepared periodically because? a.)the company's records and the bank's records are in agreement b.)the bank must make sure that its records are correct c.)the bank has not recorded all of its transactions d.)any differences between the company's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected
d.)any differences between the company's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected
(Exam 4) Journal entries based on the bank reconciliation are required in the company's accounts for? a.)bank errors b.)deposits in transit c.)outstanding checks d.)book errors
d.)book errors
(Exam 4) The journal entry to record a note received from a customer to replace an account is? a.)debit Cash; credit Notes Receivable b.)debit Accounts Receivable; credit Notes Receivable c.)debit Notes Receivable; credit Notes Payable d.)debit Notes Receivable; credit Accounts Receivable
d.)debit Notes Receivable; credit Accounts Receivable
(Exam 2) The entry to adjust the accounts for salaries accrued at the end of the accounting period is? a.)debit Cash; credit Salaries Payable b.)debit Salaries Payable; credit Salaries Expense c.)debit Salaries Payable; credit Cash d.)debit Salaries Expense; credit Salaries Payable
d.)debit Salaries Expense; credit Salaries Payable
(Exam 4) The amount for which a promissory note is written is called the? a.)realizable value b.)maturity value c.)proceeds d.)face value
d.)face value
(EXAM 5) Notes may be issued? a.when assets are purchased b.)when borrowing money c.)to creditors to temporarily satisfy an account payable created earlier d.)for All of these choices are correct.
d.)for All of these choices are correct.
(Exam 1) Earning revenue? a.)decreases assets, increases liabilities b.)increases one asset, decreases another asset c.)increases assets, decreases stockholders' equity d.)increases assets, increases stockholders' equity
d.)increases assets, increases stockholders' equity
(Exam 4) When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method? a.)is used primarily by large companies with many receivables b.)uses an allowance account c.)uses a percentage of sales method to estimate uncollectible accounts d.)is used primarily by small companies with few receivables
d.)is used primarily by small companies with few receivables
(Exam 2) Which of the following is considered to be unearned revenue? a.)theater tickets sold yesterday on credit for yesterday's performance b.)theater tickets that were not sold for the current performance c.)theater tickets sold last month for yesterday's performance d.)theater tickets sold for next month's performance
d.)theater tickets sold for next month's performance
(Exam 2) The accounting cycle requires three trial balances be done. In what order should they be prepared? a.)post-closing, adjusted, unadjusted b.)unadjusted, post-closing, adjusted c.)post-closing, unadjusted, adjusted d.)unadjusted, adjusted, post-closing
d.)unadjusted, adjusted, post-closing
(Exam 1) Revenues are reported when? a.)cash is received from the customer b.)work is begun on the job c.)a contract is signed d.)work is completed on the job
d.)work is completed on the job
