Accounting final
Adkins earns $4,400 monthly..what amount of service revenue should be recorded..?
$2,200
The net income is 26,000, the beginning and ending equity balances were 35,000 and 56,000, the company issue no common stock. Calculate the amount of dividends.
5,000
After closing entries have been posted ______.
All of the statements are correct.
In a perpetual inventory system, the physical count of inventory ______
All statements are correct.
Which of the following is true of assets
Assets are something of value the business owns or controls.
Which of the following financial statements lists the entity's assets, liabilities, and stockholder's equity as of a specific date?
Balance sheet
A business makes a cash payment to a supplier on account for office supplies. Which of the following accounts is credited?
Cash
A business purchases equipment for $8,000 cash. Which of the following accounts is credited.
Cash
Which of the following accounts decreases with a credit?
Cash
Which of the following will be categorized as an investing activity on the statement of cash flows?
Cash paid for purchase of new machinery
Which of the following will be categorized as an operating activity on the statement of cash flows?
Cash paid to employees
Under which of the following categories would accounts receivable appear?
Current assets
Which of the following statements is incorrect?
Depreciation is recorded on all plant assets.
Which of the following is a plant asset?
Equipment
Which of the following statements best defines financial statements?
Financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions.
Which of the following statements about franchises is correct?
Franchises are privileges granted by a business to sell goods or services under specified conditions.
Which of the following is the correct order of subtotals that appear on a multi-step income statement?
Gross profit, Operating income, Net income
Which of the following is true of the balance sheet presentation of the allowance for bad debts?
It is shown as a contra account related to accounts receivable.
Which of the following is a characteristic of a plant asset, such as a building?
It is used in the operation of a business.
Regarding liabilities, which of the following statements is incorrect?
Liabilities are economic resources that are expected to benefit the business in the future.
Cost of goods sold
Net purchases - (ending-beginning)
A business purchases $1,000 of occur supplies on account. Which account is it debited to?
Office supplies
Which of the following accounts would appear in the balance sheet debit column of the worksheet?
Prepaid insurance
Which of the following statements is true of revenues?
Revenues increase equity, so a revenue account's normal balance is a credit balance.
Which of the following statements is true if a bond's stated interest rate is higher than the market rate?
The bond will be issued at a premium.
Which of the following describes the environment in internal control?
The environment is the "tone at the top" of the business.
Which of the following statements is true or a corporation?
The owners of a corporation are called stockholders.
Which of the following statements regarding a periodic inventory system is incorrect?
The various inventory costing methods are not used in a periodic inventory system.
Which of the following liabilities is created when a company receives cash for services to be provided in the future?
Unearned Revenue
An internal document that helps summarize data for the preparation of financial statements is called a ______
Worksheet
The bank charges a service fee of &55. How would this information be included on the bank of reconciliation?
a deduction on the book side
A debt that a business owes is called ______.
a liability
Which of the following is included in the cost of plant asset?
amounts paid to make the asset ready for its intended use
Which one of the following account groups normally has a debit balance?
assets and expenses
An adjusting entry is completed _____
at the end of the accounting period
Gross profit
big # - small # divided by big #. example: net sales rev of $500,000 and COGS of $300,000. gross profit % is (500,000 - 300,000)/500,000 = 2/5 = .4 = 40%
A depreciable asset's cost minus accumulated depreciation is called
book value
What is the term used for the difference between the equipment account and the accumulated depreciation-equiptment account?
book value
In a periodic inventory system ______
businesses must obtain a physical count of inventory to determine the quantities on hand.
Changing the method of valuing inventory ignores the principle of _______
consistency
Which of the following accounting methods is used to account for controlling interest investments?
consolidation method
Which of the following is an example of debt securities?
corporate bonds
The ability of a company to pay its debts can be evaluated by using the
debt ratio
Advanced cash payments of future expenses are called _____
deferred expenses
The liability created when a business collects cash from its customers before completing a service or delivering a product is called _____.
deferred revenue
Common stock is a separate account in the ____ category of the accounting equation.
equity
A(n) ______ represents stock ownership in another company and sometimes pays dividends.
equity security
Which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs?
first-in, first-out
Accounts Payable is a(n) ______ account and has a normal ____ balance.
liability; credit
Which of the following assets must be reported at the lower-of-cost-or-market value?
merchandise inventory
Merchandise inventory and cost of goods sold appear ______.
on the balance sheet and income statement, respectively
A _____ is an example of equity securities.
preferred stock
The maturity value of a note is ______
principal amount plus the interest due at maturity
Liquidity is a measure of how ______
quickly an asset may be converted into cash
A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ______ balance sheet.
report form
A debt security ______.
represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period.
In a perpetual inventory system, multiple performance obligations _______.
require the company to allocate the transaction price to each performance obligation
No journal entries are required for the reconciling items on the bank side because ______
those transactions have already been recorded in the company's journal
Restrictions on retained earnings are ______.
usually reported in the notes to the financial statements
