Pbmf

Retained earnings appears on how many financial statements?

2

If a business bought $3,000 in supplies on May 1 and at the end of the month had $1,000 left in supplies, how much would it debit supplies expense for an adjusting entry?

2,000

Which of the following is NOT true regarding job cost sheets?

A job cost sheet is used to accumulate all manufacturing costs charged to a particular production department during the period.

Which of the following accounts is NOT closed at the end of the year?

Accounts payable

The balance sheet reflects the accounting equation where:

Assets=liability+equity

Which financial statement is created last?

Balance sheet

The journal entries made at the end of the accounting cycle to create zero balances in the temporary accounts are called ___________ entries.

Closing

What are the methods and techniques used by businesses to track costs to deliver products and/or services called?

Cost accounting systems

What are causal factors in overhead costs called?

Cost drivers

The labor of the production crew that produces goods is called

Direct labor

An after-closing trial balance includes both revenue and expense accounts.

False

True or false: In the trial balance, the debit column should always be larger than the credit column if a company is profitable.

False

Public companies are NOT required to report their:

General ledger

When preparing financial statements, the _____________ is always prepared first.

Income statement

transitional account into which all revenue and expense accounts are transferred at the end of an accounting period is called:

Income summary

Will borrowing money from a bank increase or decrease cash in a business?

Increase

The purchasing of plant assets is shown in what section of the cash flow statement?

Investing activities

The purpose of a worksheet is NOT to:

Not to prepare formal financial statements

A janitor cleaning a production facility would be considered:

Overhead

Which is NOT an example of overhead?

Production-line worker

A Mercedes-Benz priced the same as a Ford Focus might not sell as well because of:

Psychological factors

Dividends appear on which financial statement?

Statement of retained earnings

If a company received a cash payment from an account receivable, what would be the overall impact on assets?

Stay the same

True or false: A company that has $200,000 of expenses and $300,000 in revenue will report a net income.

True

True or false: A materials requisition form is a source document that the accounting department uses to request materials for a manufacturing process.

True

True or false: Liabilities should always be equal to total assets minus stockholders' equity.

True

At the end of the month a business learns that of the $6,000 it collected in advance, it delivered $5,000 in services. Its end-of-the-month adjusting entry would debit:

Unearned revenue

A product that is priced much higher than its cost might be using what pricing strategy

Value pricing

Which is the correct sequence of steps in the accounting cycle?

adjusted trial balance, financial statements, closing entries

What are the three categories of costs a company should track to measure how much their product or service costs?

direct labor, direct materials, overhead