Accounting Exam
After initially recording a transaction, the data is then transferred to the: A) ledger B) journal C) chart of accounts D) trial balance
A
On January 1, Davidson Services has the following balances: Accounts Receivable 24,000 Bad Debts Expense 0 Davidson has the following transactions during January: Credit sales of $100,000, collections of credit sales of $85,000, and write-offs of $15,000. Davidson uses the direct write-off method. At the end of January, The balance in Accounts Receivable is: A) $24,000 B) $28,000 C) $,16,000 D) $68,000
A
The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation Expense for the current year. Which of the following is an effect of this error? A) net income is overstated B) revenues are understated C) total liabilities are understated D) total assets are understated
A
The journal entry for the purchase of inventory on account using a periodic inventory system includes a A) Debit to purchases B) credit to purchases C) debit to merchandise inventory D) credit to merchandise inventory
A
Which of the following accounts are included in an income statement? A) service revenue, utilities expense B) furniture, cash C) land, salaries payable D) owner's name, capital, owners contributions
A
Which of the following statements is true of the worksheet? A) the worksheet is a document used to summarize data to prepare the financial statements B) the worksheet is a ledger C) the worksheet is a financial statement issued to the public to communicate the financial results of the company D) the worksheet is a journal
A
A total asset turnover ration of 4.5 indicates that for every $1 in average total assets invested, A) the firm acquired $4.50 in assets during the period B) the firm produced $4.50 in net sales revenue during the period C) the firm earned gross profit of $4.50 during the period D) the firm earned net income of $4.50 during the period
B
Berkley's gross pay for this month is $8,750. His gross pay year to date, prior to this month totaled $102,500. What is the amount of FICA withheld from Berkley's pay for this month? (Assume and OASDI rate of 4.2%, applicable on the first $110,100 earnings, and a Medicare rate of 1.45%, applicable on all earnings) A) $126.88 B) $446.08 C) $367.50 D) $319.20
B
Bike World offers warranties on all their bikes. They estimate warranty expense at 3.5% of sales. At the beginning of 2013, the Estimated Warranty Payable account had a credit balance of $1,200. During the year, Bike World had $295,000 of sales, and had to pay out $5,300 in warranty payments. At the end of the year, what is the closing balance in the Estimated Warranty Payable accounts? A) $6,500 B) $6,225 C) $9,125 D) $10,325
B
FOB shipping point refers to the situation in which title to goods in transit rests with the A) seller B) buyer C) shipping company D) transportation company
B
Financial statements are prepared from the balances in an: A) general journal B) adjusted trial balance C) unadjusted trial balance D) chart of accounts
B
For a company with significant uncollectible receivables, the direct write-off method is unsuitable because: A) it is not allowed for tax reasons B) it violates the matching principles C) direct write-offs would be immaterial D) it overstates liabilities on the balance sheet
B
In accounting, depreciation refers to the: A) method of declining the market value of an asset to its book value B) method of spreading the cost of an asset over its useful life C) method of estimation of an asset's current market value D) process of sale of a used asset
B
Outdoor Adventures Company had the following select financial data as of December 31, 201X4 Cash $15,000 Cash Equivalents 3,000 Total Current Assets 40,000 Total Current Liabilities 30,000 What is Outdoor Adventures Company's cash ratio? A) 5.00 B) 0.60 C) 0.50 D) 0.45
B
Samson Company had the following balances and transactions during 2014: Beginning Merchandise Inventory 10 units at $95 March 10 Sold 8 units June 10 Purchased 20 units at $100 October 30 Sold 15 units What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2014 balance sheet as per the periodic first-in, first-out (FIFO) costing method? A) $665 B) $700 C) $745 D) $500
B
Suppose the Carol's Candles Merchandise Inventory account shows an unadjusted balance of $15,000. On December 31, 2024, the physical count of goods on hand totaled $14,200. To adjust the accounts, Carol's Candles would make which of the following entries? A) Merchandise Inventory 800 Cost of Goods Sold 800 B) Cost of Goods Sold 800 Merchandise Inventory 800 C) Merchandise Inventory 800 Purchases 800 D) Purchases 800 Merchandise Inventory 800
B
The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called: A) long-term B) current C) intangible D) plant
B
Under the weighted-average method, the cost per unit is determined by: A) multiplying the number of units purchased with the weighted-average cost B) dividing the cost of goods available for sale by the number of units available C) dividing the cost of goods available for sale by the number of units in beginning inventory D) multiplying the cost of goods available for sale by the ending weighted-average price of previous accounting period
B
Which of the following organizations requires publicly owned companies to be audited by independent accountants (CPA's)? A) Public Company Accounting Oversight Board (PCAOB) B) Securities and Exchange Commission (SEC) C) American Institute of Certified Public Accountants (AICPA) D) Financial Accounting Standards Board (FASB)
B
Which of the following principles states that a business should never anticipate gains? A) consistency principles B) conservatism C) disclosure principle D) materiality concept
B
The matching principle states that: A) a business's activities can be sliced into small time segments B) all expenses should be recorded when they are incurred during the period C) companies should record revenue when it has been earned D) financial statements can be prepared for specific periods
B or C
A company purchased a point of sale self service cash register on January 1, for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second year of its useful life, using the double-declining balance method? A) $500 B) $800 C) $864 D) $1,080
C
Georgia Industrial purchased inventory for $5,000 and paid a $400 freight bill. Georgia Industrial returned $700 of the goods to the seller and then took a 2% purchase discount. What is Georgia Industrial's final cost of the inventory that is kept? A) $3,814 B) $4,600 C) $4,614 D) $4,794
C
Outdoor Apparel had net sales of $562,000 and Cost of Goods Sold of $290,000. How much profit did Outdoor Apparel report? A) $562,000 B) $852,000 C) $272,000 D) $290,000
C
The owner of a business withdrew cash for personal use. Which of the following accounts will be credited? A) accounts payable B) Smith, Capital C) Cash D) Smith, Withdrawals
C
Which of the following accounts increases with a credit? A) Prepaid Expenses B) accounts receivable C) Smith, Capital D) cash
C
Which of the following accounts will be credited by the borrower when a promissory note is issued? A) interest payable B) note receivable C) note payable D) cash
C
Which of the following bank reconciliation items is correctly described? A) deposits in transit increase the book side of the reconciliation B) NSF checks increase the book side of the reconciliation C) outstanding checks decrease the bank side of the reconciliation D) service charges decrease the bank side of the reconciliation
C
A company bought a new display case for $42,000 and estimated residual value to be $2,000 and the useful life to be eight years. Using straight-line depreciation, what is the book value of the display case after three years? A) $15,000 B) $15,750 C) $26,250 D) $27,000
D
A company purchases a truck with an estimated useful life of seven years. The truck cost $68,000 and tis estimated salvage value is $5,000. After five years of straight-line depreciation, the asset's total estimated useful life was revised from seven years to nine years, and there was no change in the estimated salvage value. What is the depreciation? A) $9,000 B) $7,000 C) $5,750 D) $4,500
D
If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, 30 days after the completion of the services B) when services are completely rendered and cash is received C) when cash is received, even though the services may be rendered at a later date D) when services are rendered, even though cash may be received at a later date
D
Assume Sports Warehouse had Net Sales Revenue of $100,000 and Cost of Goods Sold of $75,000. Average Merchandise Inventory was $15,000. What is the gross profit percentage for Sports Warehouse for this period? A) 90% B) 75% C) 40% D) 25%
D
At the beginning of 2015, Peter Dots has the following ledger balances: Accounts Receivable 40,000 Allowance for bad debts 5,000 During the year, credit sales amounted to $800,000. Cash collected on credit sales amount to $760,000, and $18,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5% The ending balance of Accounts Receivable would be: A) $40,000 B) $80,000 C) $18,000 D) $62,000
D
On April1, 2015, Banne services has received a 6-month note for $10,000 at 8%. Calculate the amount of interest receivable on maturity. A) $800 B) $320 C) $460 D) $400
D
Under which of the following inventory costing methods is the ending inventory valued on the cost of the most recent purchases? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out
D
Which type of transaction should be recorded in the cash receipts journal? A) accrual for interest on note payable B) accrual for depreciation C) payments to suppliers D) payments from customers
D
the account names in a worksheet are taken from and listed in the same order as the: A) ledger B) journal C) balance sheet D) chart of accounts
D
The net income of Edwards Corporation amounted to $74,000 for this year. The beginning balance of stockholders' equity was $28,000 and the ending balance was $71,000. The company issued no common stock during the year. What was the amount of dividends distributed during the year? A. $71,000 B. $145,000 C. $28,000 D. $31,000
D. $31,000
Patents, copyrights, and trademarks are examples of: A) fixed assets B) intangible assets C) long-term investments D) short-term investments
B
The document that accompanies a payment to explain the reason for the payment is an A) remittance advice B) bank reconciliation C) electronic fund transfer D) lock-box document
A
Under the direct write-off method, which of the following is included in the entry to write off an uncollectible account? A) a debit to allowance for uncollectible accounts B) a credit to the allowance for bad debts C) a credit to the customers Account Receivable D) no entry is made to write off uncollectible accounts
C
The journal entry for the purchase of inventory on account using a perpetual inventory system includes a: A) debit to purchases B) Credit to purchases C) debit to merchandise inventory D) credit to merchandise inventory
C
A commercial printing press costs $35,000 when new and has accumulated depreciation of $26,000. Suppose Quick Copy disposes of this machine and receives nothing. What is the gain or loss on the transaction? A) loss of $9,000 B) loss of $35,000 C) loss of $61,000 D) gain of $61,000
A
Which of the following is a liability account? A) accounts payable B) service revenue C) prepaid expense D) salaries expense
A
Which of the following is a contra account? A) earned revenue B) accumulated Depreciation C) unearned revenue D) depreciation expense
B
The percentage of assets that are financed with liabilities can be calculated using the: A) journal B) ledger C) debt ratio D) accounting equation
C
Which of the following financial statements is used to analyze the economic resources, debt, and overall financial position of a company? A) income statement B) statement of of owner's equity C) balance sheet D) statement of cash flows
C
Which of the following is an asset account? A) unearned revenue B) wages payable C) accounts receivable D) notes payable
C
Using the perpetual inventory system, which account is sued to record the payment of freight for inventory purchased? A) cost of goods sold B) sales revenue C) deliver expense D) merchandise inventory
D
Which of the following is a plant asset? A) patents B) trademark C) accounts receivable D) equipment
D
A positive cost/benefit relationship implies A) positive costs will be greater than positive benefits B) benefits received outweigh costs C) costs incurred outweigh benefits D) none of the above
B
The Allowance for Bad Debts account has a debit balance of $9,000 before the adjusting entry for bad debt expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Bad debts expense reported on the income statement? A) $15,000 B) $24,000 C) $4,000 D) $6,000
B
Which component of accounting information systems involves journalizing transactions? A) source documents and input devices B) processing and storage C) Outputs D) enterprise resource planning
B
Which of the following statements about intangible assets is FALSE? A) the acquisition cost of a franchise or license is amortized over its useful life B) Goodwill is recorded only by an acquiring company when it purchases another company C) patents are amortized over their useful life not their legal life D) a trademark is the exclusive right to reproduce and sell a work of art
D
An account that is not closed at the end of the period is called an: A) permanent account B) expense account C) temporary account D) revenue entry
A
An accounting information system A) produces information that is useful for decision makers B) only collects information C) is common referred to as an IAS D) A, B, and C are all correct
A
An adjusting entry is completed: A) at the end of the accounting period B) when the balance sheet is prepared C) when accounts need to be balanced in the ledger D) at the beginning of the accounting period
A
An ore deposit costing $800,000 is expected to produce 1,600,000 tons of ore over the next 10 years. A total of 70,000 tons are mined and sold in the current year. What is the depletion expense for the current year? A) $35,000 B) $56,000 C) $80,000 D) $140,000
A
Camera Emporium uses a perpetual inventory system. Suppose Camera Emporium's Purchases totaled $68,000, Purchase Returns totaled $5,200. Purchase Allowances totaled $1,500, Purchase Discounts totaled $2,800, and Freight In totaled $5,000. What is Camera Emporium's net cost of inventory purchases? A) $63,000 B) $58,500 C) $55,000 D) $53,500
A
Closing journal entries are posted: A) after preparing the financial statements B) throughout the accounting period C) after preparing the post closing trial balance D) before posting the adjusting entries
A
Consider the following special journals; the purchases journal and the sales journal. Which of these special journals include transactions that are posted to the accounts payable subsidiary ledger? A) purchases journal B) sales journal C) both purchases journal and sales journal D) neither purchases journal nor sales journal
A
Isabelle's gross pay for the week is $850. Her deduction for federal income tax is based on a rate of 19%. She has voluntary deductions of $135. Her yearly pay is under the limit for OSADI. What is the amount of FICA--Medicare Tax deducted from her pay? (Assume a FICA-OSADI Tax of 4.2% and FICA--Medicare Tax of 1.45%) A) $12.33 B) $96.47 C) $209.53 D) $198.03
A
Lorna Smith decided to start her own CPA practice as a professional corporation, Smith CPA PC. Her corporation purchased an office building for $35,000 that her real estate agent said was worth $50,000 in the current market. The corporation records the building as a $50,000 asset because Lorna believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated? A) cost principle B) economic entity assumption C) monetary unit assumption D) going concern assumption
A
Property, pant, and equipment are A) tangible assets used in the operation of a business that have a useful life of more than one year. B) tangible assets used in the operation of a business that have a useful life of less than one year C) intangible assets used in the operation of a business that have a useful life of more than one year D) intangible assets used in the operation of a business that have a useful life of less than one year
A
Smart Art is a new establishment. During the first year, there were credit sales of $40,000 and collections of credit sales of $36,000. Once account for $650 was written off. The company decided to use the aging-of-receivables method to account for bad debts expense, and estimated $500 as uncollectible at year end. Therefore, the ending balance in the Allowance for Bad Debts would be: A) $500 B) $200 C) $800 D) $150
A
The current ration measures a company's: A) ability to pay current liabilities with current assets B) overall ability to pay liabilities C) the proportion of assets that are financed by debt D) rate of cash flow
A
The petty cash fund had an initial balance of $250. It currently has $30 and petty cash tickets totaling $170 for office supplies. The entry to replenish the fund would contain a A) debit to cash short and over for $50 B) credit to cash short and over for $50 C) debit to Petty Cash for $220 D) credit to Petty Cash for $220
A
Which of the following accounts is credited by the seller when tax is collected on retail sales? A) sales tax payable B) payroll tax C) unearned revenue D) accounts payable
A
Which of the following characteristics of an effective accounting information system refers to improving decision making and reducing uncertainty? A) relevance B) control C) inputs D) outputs
A
for revenues, the category of account and its normal balance is A) owner's equity and a credit balance B) assets and a credit balance C) owner's equity and a debit balance D) assets and a debt balance
A
Sharon Samson starts a plumbing service called Reliable Waterworks. Transactions of Reliable Waterworks during the first year of operations are given below. A. Sharon deposited $14,000 into a new checking account for the business and recorded the capital contribution. B. Paid $2,000 cash for equipment to be used for plumbing repairs. C. Borrowed $15,000 from a local bank and deposited the money in the checking account. D. Paid $600 rent for the year. E. Purchased $900 of office supplies by cash F. Completed a plumbing repair project for a local lawyer and received $3,500 cash Calculate the amount of total liabilities at the end of the year A) $15,000 B) $14,000 C) $27,000 D) $3,500
A.
A firewall A) eliminates the need for separation of duties B) limits access into a local computer network C) protects buildings by preventing the spread of flames D) rearranges plain-text messages by a mathematical process
B
A lower days' sales inventory for Company X when compared to other companies, indicates that Company X: A) is spending more on inventory storage B) is able to sell its inventory quickly C) is incurring higher insurance costs D) is holding excess obsolete inventory
B
A perpetual inventory system: A) does not maintain control over inventory as strongly as a periodic inventory system does B) keeps inventory continuously updated C) updates inventory at the end of the month, based on a physical count D) is used by both merchandising companies and service companies
B
Celebration Corporation's Cash account shows an ending balance of $1,850. The bank statement shows a $52 service charge and an NSF check for $280. Other records indicate that a $240 deposit is in transit, and outstanding check total $335. What is RT's adjusted cash balance? A) $1,223 B) $1,518 C) $1,555 D) $2,078
B
Charles and Charms, a merchandiser, has an account receivable for $125 which they now decided to be uncollectable. The merchandiser uses the direct write-off method. Which of the following entries is required to record the write-off? A) Allowance for Bad Debts 125 Accounts Receivable 125 B) Bad Debts Expense 125 Accounts Receivable 125 C) Accounts Receivable 125 Bad Debts Expense 125 D) Cash 125 Accounts Receivable 125
B
Land improvements are assets that increase the usefulness of land A) and like land, are not depreciated B) and are subject to depreciation C) and are included in the cost of land D) and are also referred to as lump-sum purchases
B
What is an accounting information system activity for selling merchandise inventory? A) Request for purchase of goods or services B) Approval of credit sales C) collection of time records D) processing of vendor invoices
B
Which of the following financial statements shows the changes in owner's capital during a period of time? A) income statement B) statement of owner's equity C) statement of cash flows D) balance sheet
B
Which of the following inventory valuation methods minimizes income tax payment during a period of rising inventory costs? A) first-in, first-out B) last-in, last-out C) weighted-average D) specific identification
B
Which of the following is a liability account? A) accounts receivable. B) unearned revenue C) service revenue D) building
B
Which of the following is a reason that many companies require a photo ID when employees pick up their paychecks A) to improve efficiency of the payroll disbursement process B) to avoid writing a paycheck to a fictitious person C) to make sure all employees are legal adults D) to make sure an employee's work hours have been accurately reported
B
Which of the following is included in the entry to record estimated warranty payable? A) a credit to merchandise inventory B) a credit to estimated warranty payable C) a debit to estimated warranty payable D) a credit to warranty payable
B
Which of the following is the correct formula to calculate inventory turnover? A) inventory turnover = cost of goods sold - average merchandise inventory B) inventory turnover = cost of goods sold / average merchandise inventory C) inventory turnover = cost of goods sold + average merchandise inventory D) inventory turnover = cost of goods sold X merchandise inventory
B
Which of the following is the correct formula to calculate the debt ratio? A) Debt ratio = total liabilities + total assets B) Debt ratio = total liabilities + total assets C) Debt ratio = total liabilities - total assets D) Debt ratio = total liabilities X total assets
B
A company paid $15,000 plus a 6% commission and $4,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $ 52,500. What should be the allocation of this property's costs in the company's accounting records? A) land $75,000; land improvements $30,000; building $45,000 B) land $79,500; land improvements $32,600; building $47,500 C) land $81,500; land improvements $32,600; building $48,900 D) land $87,500; land improvements $35,000; building $52,500
C
Gunnie Inc., located in Texas, records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the following accounting assumptions does this represent? A) accounting period assumption B) economic entity assumption C) monetary unit assumption D) going concern assumption
C
In computerized accounting information systems, A) transactions are classified by type B) special journals are used C) systems are organized by function or task D) A,B,C, are correct
C
Natalie Smith, who receives cash from customers, conspires with Joe Gonzalez, who posts the collections to customer Accounts Receivable, to falsify records so they can take the cash for themselves. This is an example of A) separation of duties B) assignment of responsibilities C) collusion D) cost/benefit limitations
C
Rose Company earned revenue of $15,000 and incurred expenses of $9,000. The withdrawals of Mary Rose the owner, were $3,000. What is the balance in the Income Summary account prior to closing net income o loss to the Rose, Capital account? A) Debit balance of $6,000 B) Credit balance of $15,000 C) Credit balance of $6,000 D) Debit balance of $15,000
C
Sharon Company reported the following transactions for September, 2015. A) Sharon started the business with a capital contribution of $25,000 cash. It was credited to Sharon, Capital. B) The business purchased office equipment for $11,500 for which $2,500 cash was paid and the balance was put on a note payable. C) Paid insurance expense of $1,800 cash. D) Paid a utility bill for $900 cash. E) Paid $2,000 cash for September rent. F) The business had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales. G) The business paid $8,000 cash for office furniture. What are the total liabilities at the end of September, 2015? A) $8,000 B) $1,800 C) $9,000 D) $11,500
C
The accountant for Jones Auto Repair Company failed to make an adjusting entry to record $5,000 of unpaid salaries for the last 2 weeks of the year. Which of the following is an impact of this omission? A) the total assets will be overstated B) the total assets will be understated C) the net income will be overstated D) the total liabilities will be overstated
C
The two basic components of a computerized accounting information system are A) QuickBooks and entry-level software B) entry-level software and enterprise resource planning C) software and hardware D) cash basis and accrual basis
C
Thompson Corporation has a sale in the amount of $20,000. The customer pays by credit card. The credit card processor charges 3% and uses the gross method. The journal entry to record the transaction on the date of sale would include a A) debit to Cash for $19,400 B) credit to Cash for $19,400 C) debit to Cash for $20,000 D) credit to Cash for $20,000
C
Which of the following is a major control risk in the payroll area? A) contracts being awarded to relatives of employees B) expenses being recorded as assets in order to manipulate earnings C) fictitious persons cashing paychecks D) theft of inventory by staff
C
Which of the following is not a primary objective that internal control is designed to accomplish? A) safeguard assets B) promote operational efficiency C) monitor risk assessment D) ensure accurate, reliable records
C
Which of the following statements helps analyze the business performance in terms of profitability? A) statement of cash flows B) balance sheet C) income statement D) statement of owner's equity
C
Which of the following values remains the same irrespective of the inventory valuation method used by a company? Assume the cost of inventory is rising: A) net income B) ending merchandise inventory C) purchases D) cost of goods sold
C
Lush Lawns performs lawn mowing services for its customers. The payments for the current month's services are expected to be received next month. How does this transaction affect the accounting equation of Lush Lawn? A) Liabilities increase; equity decreases B) Liabilities increase; equity increases C) Assets decrease; equity decreases D) Assets increase; equity increases
D
Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month. Which of the following accounts would decrease as a result of this transaction? A) equity B) accounts payable C) cash D) accounts receivable
D
On April 10, 2013, Peter Services received $4,800 in advance from a customer for one month's service, to be provided April 10, 2013 to May 10, 2013. What would be the journal entry to adjust the accounts at the end of April? A) debit service revenue $1,600 and credit unearned revenue $1,600 B) debit unearned revenue $4,800 and credit service revenue $4,800 C) debit service revenue $3,200 and credit accounts receivable $3,200 D) debit unearned revenue $3,200 and credit service revenue $3,200
D
On December 1, 2015, Parsons Inc. sold machinery to a customer for $20,000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 9% interest. How much interest revenue was earned during the year 2015? A) $200 B) $180 C) $900 D) $150
D
On October 1, 2015 Android Inc. made a loan to one of its customers. The customer signed a 4-month note for $100,000 at 15%. Calculate the total interest earned on the note. A) $3,750 B) $15,000 C) $1,250 D) $5,000
D
Revenue that has been earned but not yet collected in cash is called an: A) prepaid expense B) unearned revenue C) accrued expense D) Accrued revenue
D
The Sarbanes-Oxley Act A) stipulates that violators of the act may serve 5-10 years in prison for securities fraud and/or falsifying financial statements B) requires the Financial Accounting Standards Board to oversee auditors of public companies C) requires that the internal control environment must reflect the "tone at the top" D) prohibits auditors of public companies from performing certain consulting services for those companies
D
Which of the following are NOT included in a post-closing trial balance? A) assets and liabilities B) capital and liabilities C) capital and assets D)revenues and expenses
D
Which of the following inventory costing methods uses the cost of the oldest purchases to calculate the cost of goods sold? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out
D
Which of the following inventory costing methods yields the lowest cost of goods sold during a period of rising inventory costs? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out
D
Which of the following is a component of an accounting information system? A) Source documents and input devices B) Processing and storage C) outputs D) A, B, C, are all correct
D
Which of the following is an important internal control over payroll? A) separating the duties of approving invoices from signing disbursement checks B) separating the duties of safeguarding property from record-keeping of property C) separating the duties of cash disbursement from bank reconciliations D) separating the duties of the disbursement of paychecks from the recording of payroll transactions in the ledger
D
