Question 1

As supplies are used,they become:

Accepted Answer

A) inventory. 
B) a liability. 
C) an expense. 
D) a revenue. 
A) inventory. 
B) a liability. 
C) an expense. 
D) a revenue.

Question 2

The beginning inventory is assumed to be sold;therefore,it is added to cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 3

The ending inventory in Year 1 is not the beginning inventory in Year 2.

Accepted Answer

A) True 
 B)False

Question 4

Owner's Withdrawals 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.

Question 5

Why is beginning and ending inventory kept as two separate figures in the cost of goods sold section?

Accepted Answer

When the income statement is prepared,th

Question 6

If ending inventory is overstated this period,beginning inventory will be overstated in the next period.

Accepted Answer

A) True 
 B)False

Question 7

As Unearned Rent Revenue is earned,it becomes:

Accepted Answer

A) an asset. 
B) a revenue. 
C) a liability. 
D) an expense. 
A) an asset. 
B) a revenue. 
C) a liability. 
D) an expense.

Question 8

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \begin{array} { l } 
\text { Unearned Rent } \
\text { Revenue }
\end{array} & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 9

Beginning inventory was $3,000,purchases totaled $20,000 and sales were $17,000.What is the ending inventory? Assume gross profit is $0.

Accepted Answer

A) $2,000 
B) $4,000 
C) $6,000 
D) $8,000 
A) $2,000 
B) $4,000 
C) $6,000 
D) $8,000

Question 10

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Salaries payable } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 11

From the following items,which would most likely cause the recording of unearned revenue?

Accepted Answer

A) Potential sale of merchandise 
B) Purchase of merchandise on account 
C) Legal fees collected after work is performed 
D) Subscriptions collected in advance for a magazine 
A) Potential sale of merchandise 
B) Purchase of merchandise on account 
C) Legal fees collected after work is performed 
D) Subscriptions collected in advance for a magazine

Question 12

The adjustment for accrued salaries would be to:

Accepted Answer

A) debit Salaries Expense;credit Cash. 
B) debit Salaries Payable;credit Salaries Expense. 
C) debit Salaries Expense;credit Salaries Payable. 
D) debit Salaries Payable;credit Cash. 
A) debit Salaries Expense;credit Cash. 
B) debit Salaries Payable;credit Salaries Expense. 
C) debit Salaries Expense;credit Salaries Payable. 
D) debit Salaries Payable;credit Cash.

Question 13

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

Accepted Answer

The answer of Calculate the missing figures (a-k) in each...

Question 14

At the start of the year,Northern Lights had $8,000 worth of merchandise.This is called:

Accepted Answer

A) Cost of Goods Sold. 
B) beginning inventory. 
C) ending inventory. 
D) Purchases. 
A) Cost of Goods Sold. 
B) beginning inventory. 
C) ending inventory. 
D) Purchases.

Question 15

Which inventory appears in the balance sheet column of the worksheet?

Accepted Answer

A) Ending inventory 
B) Beginning inventory 
C) Combination of beginning and ending inventories 
D) Purchases 
A) Ending inventory 
B) Beginning inventory 
C) Combination of beginning and ending inventories 
D) Purchases

Question 16

Under the periodic inventory method,the ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 17

As the Unearned Rent Revenue is earned:

Accepted Answer

A) the liability account is decreased and the revenue account is increased. 
B) the liability account is increased and the revenue account is decreased. 
C) the liability account is decreased and the revenue account is not affected. 
D) the liability account is not affected but the revenue account is decreased. 
A) the liability account is decreased and the revenue account is increased. 
B) the liability account is increased and the revenue account is decreased. 
C) the liability account is decreased and the revenue account is not affected. 
D) the liability account is not affected but the revenue account is decreased.

Question 18

Beginning Merchandise Inventory 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.

Question 19

Beginning and ending inventories for John's Books are $12,000 and $9,000,respectively.The debit amounts (not including Income Summary)in the income statement columns of the worksheet total $13,000,and the credit amounts (not including Income Summary)total $14,500.The firm has a:

Accepted Answer

A) net income of $1,500. 
B) net loss of $1,500. 
C) net loss of $3,000. 
D) net income of $3,000. 
A) net income of $1,500. 
B) net loss of $1,500. 
C) net loss of $3,000. 
D) net income of $3,000.

Question 20

Unearned Rent Revenue results because:

Accepted Answer

A) no fee has been paid,and the service is not complete. 
B) the fee is earned but not collected. 
C) the fee has been collected before the service has been provided. 
D) the fee has been paid,and the service is complete. 
A) no fee has been paid,and the service is not complete. 
B) the fee is earned but not collected. 
C) the fee has been collected before the service has been provided. 
D) the fee has been paid,and the service is complete.

Exam 11: Preparing a Worksheet for a Merchandise Company

As supplies are used,they become:

The beginning inventory is assumed to be sold;therefore,it is added to cost of goods sold.

The ending inventory in Year 1 is not the beginning inventory in Year 2.

Owner's Withdrawals would be found on the worksheet in the:

Why is beginning and ending inventory kept as two separate figures in the cost of goods sold section?

If ending inventory is overstated this period,beginning inventory will be overstated in the next period.

As Unearned Rent Revenue is earned,it becomes:

Beginning inventory was $3,000,purchases totaled $20,000 and sales were $17,000.What is the ending inventory? Assume gross profit is $0.

From the following items,which would most likely cause the recording of unearned revenue?

The adjustment for accrued salaries would be to:

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

At the start of the year,Northern Lights had $8,000 worth of merchandise.This is called:

Which inventory appears in the balance sheet column of the worksheet?

Under the periodic inventory method,the ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

As the Unearned Rent Revenue is earned:

Beginning Merchandise Inventory would be found on the worksheet in the:

Beginning and ending inventories for John's Books are $12,000 and $9,000,respectively.The debit amounts (not including Income Summary)in the income statement columns of the worksheet total $13,000,and the credit amounts (not including Income Summary)total $14,500.The firm has a:

Unearned Rent Revenue results because:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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