ACC Exam #2

Stalkier company had a BI of $15,000 During the year, the company recorded inventory purchases of $45,000 and COGS of $50,000. the EI must equal

$10,000

Gustad Corporation had an income before tax of 164,000 last quarter. The company is subject to a 34% income tax rate. What was the companies net income last quarter?

$108,240

if a company ending inventory count was $50,000 cost of goods sold was $27,000 and purchases were $56,000 its beginning inventory must be:

$21,000

Bijoux Company has sales of $40,000, beginning inventory of $5,000, purchases of $25,000, and ending inventory of $7,000. The cost of goods sold is:

$23,000

the annual depreciation taken on a vehicle equals 3,000. The vehicle has been in service for 3 full years and the adjusting entires have been completed for each year. At the end of the 3rd year, the balance in the depreciation expense account will be $_____ and the balance in the accumulated depreciation account will be $_____

$3000;$9000

The asset account office supplies has a balance of $800 at the beginning of the year. the amount on hand at the end of the year is $500. The company has calculated the supplies expense for the year to be $3500. Based on this information, what amount of office supplies was purchased during the year?

$3200

A company reported salaries and wages payable of $750 at the beginning of the year and $2500 at the end of the year. The income statement for the year reported salaries and wages expense of $56200. How much cash was paid for salaries and wages during the year?

$54,450

A company starts the period with 100 computers in inventory, purchases 30 more, returns 4 of them, and has 83 in inventory at the end of the period. if there is no shrinkage or theft, how many computers were sold?

43

which of the following statements about COGS is true?

COGS = BI + P - EI

which of the following is not a commonly used internal control?

Consolidating job duties

the book value of equipment is equal to which of the following?

Cost of equipment minus the related accumulated depreciation

During 2018, its first year of operations, Duhr Corporation leased manufacturing facilities from Liam Properties, LLC for $2000 a month. As an incentive to attract a new tenant, Liam allowed Duhr to pay its entire 2018 rent of January 31, 2019. Assuming Duhr made no lease related accounting entries during 2018, what adjusting journal entry should Duhr record as of December 31, 2018?

Debit Rent Expense and Credit Accrued Rent Payable $24,000

During 2018, its first year of operations, tardos coporation leased manufacturing facilities from stenholm llc for $5000 per month. As an incentive to attract a new tenant, stenholm allowed tardos to pay its entire 2018 rent on January 31, 2019. Assuming stenholm made no lease related accounting entries during 2018, what adjusting journal entry should stenholm record as of December 31, 2018?

Debit accounts receivable and credit rent revenue for $60,000

what effect does the adjusting entry recording depreciation have on the accounting equation?

Decrease Assets; No effect on liabilities; Decrease SE

A bank reconciliation item that may be reflected in the company internal cash balance but does not appear in the company bank statement could be

Deposits in transit

Which of the following statements about Ending Inventory is true?

EI = BI + P - COGS

which of the following statements about gross profit is true?

Gross profit = net sales - cost of goods sold

A company pays salaries and wages every two weeks. Salaries and wages amount to $1,000 per day and the company has a seven day work week. On march 31, the company pays wages for the two weeks ending March 24 and recorded the related journal entry. The adjusting journal entry, dated March 31, to record unpaid wages and salaries owed since March 25 will include a debit to:

Salaries and wages expense and a credit to to salaries and wages payable for $7000

Which of the following was passed by congress in response to financial statement frauds that that occurred in the early 2000's?

Sarbanes-Oxley Act

The prepaid insurance account has a normal balance of $3750 at the beginning of the month. The company used $980 of insurance coverage during the month. Which statement is correct?

The company should debit insurance expense for $980 and credit prepaid insurance for $980

Which of the following is a correct statement about the nature of equipment?

While it is recorded as an asset, its use is recorded as an expense

When existing assets are used up in the ordinary course of business:

an expense is recorded

Adjusting entries are typically prepared

at the end of the accounting period

Deposits in Transit

been recorded by the company but not yet by the bank

Which of the following is not a reason why it is especially important for companies to have internal controls over cash?

cash is rarely a material element of a company balance sheet

which element is not part of the fraud triangle?

control environment

A weak system of internal ______ provides the ______ to commit fraud.

controls; opportunity

During the month, a company consumes $4,000 of supplies. At the end of the month, the related adjusting journal entry would result in a ____

decrease in an asset and an equal increase in expenses

Jordan received a B Dubs gift certificate for his birthday in September. What will the effect of B Dubs adjusting entry when he pays for dinner in October?

decrease in liabilities and an increase in revenue

the process of allocating the cost of buildings, vehicles, and equipment to the accounting periods in which they are used is called

depreciation

Adjustments help to ensure that all ______ are recorded in the period in which they are incurred

expenses

the operating cycle includes:

generating revenues and collecting payments from customers

Which of the following is not a reason that a business needs an effective internal control system?

identify ways to effectively and efficiently circumvent applicable laws and regulations

Which line item would be found on a merchandiser's balance sheet and not on a firms balance sheet?

inventory

under the periodic inventory system:

inventory must be counted at the end of each accounting period.

which of the following statements about internal control is not correct

it guarantees the management will behave ethically

why is inventory typically reported as a current asset?

it is expected to be converted into cash within one year of balance sheet date

Samsung makes electronic devices using raw materials acquired from suppliers. Samsung is a:

manufacturing company

A contra-account:

offsets, or reduces, another account

After the adjustments have been completed, the adjusted balance in the Supplies Expense account represents the cost of supplies:

used during the accounting period

Outstanding checks refer to checks that have been:

written, recorded, sent to the payees, but not yet paid by the bank