Question 1

On the worksheet the Cost of Goods Sold account appears in the

Accepted Answer

A)  adjusted trial balance and balance sheet columns. 
B)  adjustment column. 
C)  adjustment, adjusted trial balance, and income statement columns. 
D)  adjustment, adjusted trial balance, and balance sheet column. 
A)  adjusted trial balance and balance sheet columns. 
B)  adjustment column. 
C)  adjustment, adjusted trial balance, and income statement columns. 
D)  adjustment, adjusted trial balance, and balance sheet column. C

Question 2

Owner's Capital would be found on the worksheet in the

Accepted Answer

A)  income statement debit column. 
B)  income statement credit column. 
C)  balance sheet debit column. 
D)  balance sheet credit column. 
A)  income statement debit column. 
B)  income statement credit column. 
C)  balance sheet debit column. 
D)  balance sheet credit column. D

Question 3

When counting supplies, several boxes were missed. This would cause

Accepted Answer

A)  Supplies to be overstated. 
B)  Supplies Expense to be understated. 
C)  Net Income to be overstated. 
D)  All of the above are correct. 
A)  Supplies to be overstated. 
B)  Supplies Expense to be understated. 
C)  Net Income to be overstated. 
D)  All of the above are correct. B

Question 4

Net Income equals

Accepted Answer

A)  Net Sales - Cost of goods sold - Operating expenses. 
B)  Gross Profit - Operating expenses. 
C)  Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses. 
D)  All of the above are correct. 
A)  Net Sales - Cost of goods sold - Operating expenses. 
B)  Gross Profit - Operating expenses. 
C)  Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses. 
D)  All of the above are correct.

Question 5

Unearned Rent is one type of unearned revenue.

Accepted Answer

A) True 
 B)False

Question 6

In the perpetual inventory system, it is not necessary to take a physical inventory at the end of the period.

Accepted Answer

A) True 
 B)False

Question 7

If $4,000 was the beginning inventory, $10,000 in new inventory purchases were made and the cost of goods sold were $7,000. How much was ending inventory last accounting period?

Accepted Answer

A)  $7,000 
B)  $4,000 
C)  $14,000 
D)  $3,000 
A)  $7,000 
B)  $4,000 
C)  $14,000 
D)  $3,000

Question 8

Unearned Rent is a balance sheet account.

Accepted Answer

A) True 
 B)False

Question 9

At the end of the fiscal period the merchandise inventory account

Accepted Answer

A)  will have a zero balance. 
B)  will have the same balance as the beginning inventory. 
C)  will have been transferred to the balance sheet credit column. 
D)  will have been transferred to the balance sheet debit column. 
A)  will have a zero balance. 
B)  will have the same balance as the beginning inventory. 
C)  will have been transferred to the balance sheet credit column. 
D)  will have been transferred to the balance sheet debit column.

Question 10

The financial statement on which Unearned Rent would appear is

Accepted Answer

A)  the income statement. 
B)  the balance sheet. 
C)  the owner's equity statement. 
D)  Unearned Rent is not reported until earned. 
A)  the income statement. 
B)  the balance sheet. 
C)  the owner's equity statement. 
D)  Unearned Rent is not reported until earned.

Question 11

Calculate the missing figures (a-k) in each of the following independent scenarios.

-             Sales       Merchandise Inventory      Physical Inventory Count        Unadjusted Cost of Goods Sold         Inventory Shrinkage      Adjusted Cost of Goods Sold        Gross Profit              400      125      130      325      a)      b)        c)      a) ________
b) ________
c) ________

Accepted Answer

a) $(5)
b)

Question 12

If a physical count is not completed and shrinkage has occured, beginning inventory will be overstated in the next period.

Accepted Answer

A) True 
 B)False

Question 13

Mortgage Payable

Accepted Answer

A)  has a debit balance. 
B)  has a credit balance. 
C)  shows the amount owed on a mortgage. 
D)  Both B and C are correct. 
A)  has a debit balance. 
B)  has a credit balance. 
C)  shows the amount owed on a mortgage. 
D)  Both B and C are correct.

Question 14

The adjusted trial balance on the worksheet

Accepted Answer

A)  contains balances from the permanent accounts. 
B)  contains balances from the temporary accounts. 
C)  contains balances for all accounts with balances. 
D)  None of the above answers are correct. 
A)  contains balances from the permanent accounts. 
B)  contains balances from the temporary accounts. 
C)  contains balances for all accounts with balances. 
D)  None of the above answers are correct.

Question 15

Merchandise Inventory appears on both the Income Statement and the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 16

An adjustment can be made on the worksheet when the perpetual inventory system is used if the physical count of inventory differs from the records.

Accepted Answer

A) True 
 B)False

Question 17

Net income is added to the worksheet credit column of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

When completing a worksheet,

Accepted Answer

A)  the inventory amount appears in the income statement debit column. 
B)  the inventory amount appears in the adjustment credit column. 
C)  the inventory amount appears in the unadjusted trial balance debit column of the worksheet. 
D)  the inventory amount appears in the balance sheet debit column of the worksheet. 
A)  the inventory amount appears in the income statement debit column. 
B)  the inventory amount appears in the adjustment credit column. 
C)  the inventory amount appears in the unadjusted trial balance debit column of the worksheet. 
D)  the inventory amount appears in the balance sheet debit column of the worksheet.

Question 19

Adjustments are journalized before recording them in the worksheet.

Accepted Answer

A) True 
 B)False

Question 20

The entry to adjust for Unearned Rent becoming earned includes

Accepted Answer

A)  a debit to Unearned Rent. 
B)  a credit to Unearned Rent. 
C)  a debit to Income Summary. 
D)  None of these are correct. 
A)  a debit to Unearned Rent. 
B)  a credit to Unearned Rent. 
C)  a debit to Income Summary. 
D)  None of these are correct.

On the worksheet the Cost of Goods Sold account appears in the

Owner's Capital would be found on the worksheet in the

When counting supplies, several boxes were missed. This would cause

Net Income equals

Unearned Rent is one type of unearned revenue.

In the perpetual inventory system, it is not necessary to take a physical inventory at the end of the period.

If $4,000 was the beginning inventory, $10,000 in new inventory purchases were made and the cost of goods sold were $7,000. How much was ending inventory last accounting period?

Unearned Rent is a balance sheet account.

At the end of the fiscal period the merchandise inventory account

The financial statement on which Unearned Rent would appear is

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Sales Merchandise Inventory Physical Inventory Count Unadjusted Cost of Goods Sold Inventory Shrinkage Adjusted Cost of Goods Sold Gross Profit

400 125 130 325 a) b) c)

a) b) c)

If a physical count is not completed and shrinkage has occured, beginning inventory will be overstated in the next period.

Mortgage Payable

The adjusted trial balance on the worksheet

Merchandise Inventory appears on both the Income Statement and the Balance Sheet.

An adjustment can be made on the worksheet when the perpetual inventory system is used if the physical count of inventory differs from the records.

Net income is added to the worksheet credit column of the balance sheet.

When completing a worksheet,

Adjustments are journalized before recording them in the worksheet.

The entry to adjust for Unearned Rent becoming earned includes

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Completion of the Accounting Cycle for a Merchandising Company

Filters

Sales	Merchandise Inventory	Physical Inventory Count	Unadjusted Cost of Goods Sold	Inventory Shrinkage	Adjusted Cost of Goods Sold	Gross Profit
400	125	130	325	a)	b)	c)

Exam 12: Preparing a Worksheet for a Merchandising Company

On the worksheet the Cost of Goods Sold account appears in the

Owner's Capital would be found on the worksheet in the

When counting supplies, several boxes were missed. This would cause

Net Income equals

Unearned Rent is one type of unearned revenue.

In the perpetual inventory system, it is not necessary to take a physical inventory at the end of the period.

If $4,000 was the beginning inventory, $10,000 in new inventory purchases were made and the cost of goods sold were $7,000. How much was ending inventory last accounting period?

Unearned Rent is a balance sheet account.

At the end of the fiscal period the merchandise inventory account

The financial statement on which Unearned Rent would appear is

Calculate the missing figures (a-k) in each of the following independent scenarios. - Sales Merchandise Inventory Physical Inventory Count Unadjusted Cost of Goods Sold Inventory Shrinkage Adjusted Cost of Goods Sold Gross Profit 400 125 130 325 a) b) c) a) ________ b) ________ c) ________

If a physical count is not completed and shrinkage has occured, beginning inventory will be overstated in the next period.

Mortgage Payable

The adjusted trial balance on the worksheet

Merchandise Inventory appears on both the Income Statement and the Balance Sheet.

An adjustment can be made on the worksheet when the perpetual inventory system is used if the physical count of inventory differs from the records.

Net income is added to the worksheet credit column of the balance sheet.

When completing a worksheet,

Adjustments are journalized before recording them in the worksheet.

The entry to adjust for Unearned Rent becoming earned includes

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Completion of the Accounting Cycle for a Merchandising Company

Filters

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Sales Merchandise Inventory Physical Inventory Count Unadjusted Cost of Goods Sold Inventory Shrinkage Adjusted Cost of Goods Sold Gross Profit

400 125 130 325 a) b) c)

a) b) c)