Exam 14: Adjustments and the Work Sheet for a Merchandising Business

If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?

(Multiple Choice)

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Question 61

Unearned Revenue is a liability account.

(True/False)

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Question 62

Only the adjusted credit balance in the merchandise inventory account is extended to the Adjusted Trial Balance columns of the work sheet.

(True/False)

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Question 63

If the ending inventory is understated for any reason,

(Multiple Choice)

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Question 64

Cash received in advance for performing a service or delivering a product is called unearned revenue.

(True/False)

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Question 65

The merchandise inventory account always reflects the current inventory on hand.

(True/False)

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Question 66

Unearned revenue is reported as a(n)

(Multiple Choice)

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Question 67

Match the terms with the definitions. -Accounts that are deducted from Sales on the income statement (i.e., Sales Returns and Allowances, Sales Discounts).

(Multiple Choice)

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Question 68

Under the cash basis of accounting, revenue is recorded when earned regardless of when cash is received.

(True/False)

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Question 69

On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents

(Multiple Choice)

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Question 70

Showing 61 - 70 of 70

If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?

Unearned Revenue is a liability account.

Only the adjusted credit balance in the merchandise inventory account is extended to the Adjusted Trial Balance columns of the work sheet.

If the ending inventory is understated for any reason,

Cash received in advance for performing a service or delivering a product is called unearned revenue.

The merchandise inventory account always reflects the current inventory on hand.

Unearned revenue is reported as a(n)

Match the terms with the definitions. -Accounts that are deducted from Sales on the income statement (i.e., Sales Returns and Allowances, Sales Discounts).

Under the cash basis of accounting, revenue is recorded when earned regardless of when cash is received.

On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

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