ACC

An adjusting entry could be made for each of the following except:

Owner withdrawals. Owner capital. Cash. Account payable. Revenue. Cost of goods sold.

An example of an operating activity is:

Paying wages.

Assets, liabilities, and equity accounts are not closed; these accounts are called:

Permanent accounts.

An example of an investing activity is

Purchase of land.

A vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. The depreciation expense (using straight line method) for a year is:

$ 2687.50.

An example of a financing activity is:

Obtaining a long-term loan.

Hefty Company wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the current year.January 2 Beginning Inventory: 500 units at $3.00 April 7 Purchased : 1,100 units at $3.20 June 30 Purchased : 400 units at $4.00 December 7 Purchased : 1,600 units at $4.40 Sales during the year were 2,700 units at $5.00. If Hefty used the periodic LIFO method,

$10,880

Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. June, 1: Beginning inventory 15 units at $20 each

$120.

At the beginning of 2009, Beta Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During 2009, the company reported total revenues of $226,000 and expenses of $175,000. Also, owner withdrawals during 2009 totaled $48,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

$123,000.

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold?

$124

Acme-Jones Company uses a weighted-average perpetual inventory system. August 2, 8 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit.

$15.38.

Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit.

$158.40.

A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 of office supplies. On December 31, $75 of office supplies remained. How much should the company report as office supplies expense for the year?

$175

A company has sales of $350,000, Account Receivable of 50,000 and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debts expense is

$2,450

Cooley company has the balance in the accounts payable at the beginning of March was $1,000. During the month of March, Cooley company purchased from Dell company on account totaling $2,000. Also during this month, Cooley company paid $500 on its accounts payable for Dell company. In addition, Cooley company was paid $8,000 by a customer for services to be provided in the future.

$2,500

A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?

$2,900

During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance?

$2,900.

A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000, and had a five-year useful life. What is the depreciation expense for one year?

$2000.

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of ending inventories?

$216.

If assets are $365,000 and equity is $120,000, then liabilities are:

$245,000.

Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:

$274,000.

A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO

$276

A company purchased a new truck at a cost of $42,000 on July 1, 2009. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2009?

$3,250.

A company had the following purchases during the current year: Jan: 10 units at $ 120 Feb: 20 units at $130

$3,800.

A company purchased a plant asset for $45,000. The asset has an estimated salvage value of $6,000, and an estimated useful life of 10 years. The annual depreciation expense using the straight-line method is

$3,900 per year.

A company has inventory of 20 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 15 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO periodic inventory method, what is the value of Cost of goods sold on August 15?

$370

Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

$40,500 increase.

A record of financial transactions in order by date and often defined as the book of original entry. This statement is about:

A General journal

A company has $20,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts is $800. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

$400

A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold?

$410

At the beginning of 2009, a company's balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner's Capital = $50,000. During 2009, the company reported revenues of $46,000 and expenses of $30,000. In addition, owner's withdrawals for the year totaled $20,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

$46,000.

A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

$470

At the beginning of January of the current year, a Law company has a normal balance of $50,000 for accounts receivable. During January, the company collected $14,000 from customers and provided additional services to customers on account totaling $12,000. Additional, company used service of $ 1,000 on credit. At the end of January, the balance in the accounts receivable account should be:

$48,000.

A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $21 each. On November 6 it purchased 15 units at $25 each. On November 8, it sold 20 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 20 units sold?

$480

At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

$49.7

If equity is $300,000 and liabilities are $192,000, then assets equal:

$492,000.

A company purchased new computers at a cost of $28,000 on January 1, 2010. The computers are estimated to have a useful life of 5 years and have a salvage value of 3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010?

$5,000

A company has inventory of 15 units at a cost of $2 each on August 1. On August 5, it purchased 10 units at $3 per unit. On August 12 it purchased 20 units at $4 per unit. On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

$60.

If assets are $199,000 and liabilities are $132,000, then equity equals

$67,000

A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity?

$71,000.

A company purchased new computers at a cost of $14,000 on October 1, 2010. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010?

$750

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

+$10,000 accounts receivable, +$10,000 revenue.

How does Lead Company record by the billing of a client for $15,000 of service completed?

+$15,000 accounts receivable, +$15,000 revenue.

After preparing and posting the closing entries to close revenues (and gains) and expenses (and losses) into the income summary, the income summary account has a debit balance of $33,000. The entry to close the income summary account will include:

A debit of $33,000 to owner capital.

If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include:

A debit to Salaries Payable and a credit to Cash.

A condition in which a company's expenses exceed its revenues. What does that mean:

A loss

Assets created by selling goods and services on credit are:

Accounts receivable.

Adjusting entries:

Affect both income statement and balance sheet accounts.

A credit is used to record:

All of these.

Acceptable inventory methods include:

All of these.

Accounting is an information and measurement system that:

All of these.

Adjusting entries are journal entries made at the end of an accounting period for the purpose of:

All of these.

Costs included in the Merchandise Inventory account can include:

All of these.

External users of accounting information include:

All of these.

A debit is used to record:

An increase in the balance of the owner's withdrawals account.

An overstatement of ending inventory will cause

An overstatement of assets and equity on the balance sheet.

If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?

Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

Assets would have increased $55,000.

Accounts receivable refers: | Money which is owed to a company by a customer for products and services provided on credit Accounts receivable that may become uncollectable and will be written off , is known as:

Bad debts

A business is accounted for separately from other business entities, including its owner.

Business Entity Assumption

An account used to record the owner's investments in the business is called a(n):

Capital account.

Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:

Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000.

If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

Debit Tim Jones, Withdrawals and credit Cash.

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

Debit Unearned Legal Fees and credit Legal Fees Earned.

If Hussan, the owner of Hardware company, uses cash of the business to purchase a motorcycle for his travelling, the business should record this use of cash with an entry to:

Debit Withdrawals and credit Cash.

If Jones, the owner of Hardware company, uses cash of the business to purchase a family car, the business should record this use of cash with an entry to:

Debit Withdrawals and credit Cash.

If Smith, the owner of a restaurant, uses cash of the business to pay for renting his house, the business should record this use of cash with an entry to:

Debit Withdrawals and credit Cash.

Adjusting depreciation expense of fixed asset at $8,000. Recording this transaction:

Debit depreciation expense $8,000 and credit accumulated depreciation expense $,8000

Borrow $ 1,000 loan to pay for new equipment of the company is recorded with:

Debit equipment and credit loan

Electron borrowed $15,000 cash from TechCom by signing a promissory note. TechCom's entry to record the transaction should include a:

Debit to Notes Receivable for $15,000.

Flynn Company uses an allowance method for recording uncollectible. At the due date of that account receivable, Flynn determined that $4,000 due from Mitchell will not be collected and should be write off. The entry Flynn should record to write off the Mitchell account is:

Dr. Allow. for Uncollectible Accounts 4,000 Cr. Accounts Receivable 4,000

Branz Company had credit sales during the current year which amounted to $700,000. Historically, 3% of credit sales are uncollectible. If Branz uses the allowance method of recording uncollectible accounts, a proper journal entry for the year would be:

Dr. Uncollectible Accounts Expense 21,000 Cr. Allow. for Uncollectible Accounts 21,000

Ending inventory is equal to merchandise available for sale minus cost of goods sold.

Ending inventory is equal to merchandise available for sale minus cost of goods sold.

Decreases in equity that represent costs of assets or services used to earn revenues are called:

Expenses.

A method of valuing the cost of goods sold that uses the cost of the oldest items in inventory first. What is it?

FIFO

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

Financing activity.

Calculated as sales minus all costs directly related to those sales. It is about:

Gross profit

Book value is equal to:

None of these

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Increased $22,000.

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

Increased $45,000.

All expenditures necessary to bring an item to a salable condition and location. This statement is the definition of:

Inventory costs

A company acquires equipment for $75,000 cash. This represents a(n):

Investing activity.

Costs included in the Merchandise Inventory account can include:

Invoice price minus any discount, Transportation-in, Storage, Insurance

A method of valuing inventory in which the items acquired last are treated as the ones sold first. What is it?

LIFO

Creditors' claims on the assets of a company are called:

Liabilities.

External users of accounting information exclude:

Manager

A company must record its expenses incurred to generate the revenue reported.It is about:

Matching Principle

Another name for equity is:

Net asset.

An asset created by prepayment of an expense is:

Recorded as a debit to a prepaid expense account.

Gross increases in equity from a company's earnings activities are:

Revenues.

An estimate of an asset's value at the end of its benefit period is called:

Salvage value

A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a:

T-account.

A debit is:

The left-hand side of a T-account.

$370.A company had inventory of 15 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 12 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? | $454. A balance sheet lists:

The types and amounts of assets, liabilities, and equity of a business as of a specific date.

A liability account that reports amounts received in advance of providing goods or services. It is about:

Unearned revenue

A cash outflow from the company into its owner is called a(n):

Withdrawal

A payment to an owner for personal use is called a(n):

Withdrawal.

Distributions by a business to its owners are called:

Withdrawals

A company might buy a service or product on credit. "On credit" implies that the cash payment will occur:

on a later date

A company might provide a service or product on credit. "On credit" implies that the cash payment will occur:

on a later date