Question 1

Freight-in is:

Accepted Answer

A)  a Cost of Selling Goods. 
B)  a Cost of Purchasing Goods. 
C)  recorded as an Operating Expense. 
D)  a Selling Expense. 
A)  a Cost of Selling Goods. 
B)  a Cost of Purchasing Goods. 
C)  recorded as an Operating Expense. 
D)  a Selling Expense. B

Question 2

Identify the category(s) of each of the accounts below.
Current Asset
Plant and Equipment
Current Liabilities
Long-Term Liabilities

Accepted Answer

The answer of Identify the category(s) of each of the...

Question 3

If Net Sales is $10,500, Cost of Goods Sold is $5,400, Gross Profit is $5,100 and Operating Expenses are $1,800, what is the Net Income from Operations?

Accepted Answer

A)  $6,900 
B)  $3,300 
C)  $1,800 
D)  $5,100 
A)  $6,900 
B)  $3,300 
C)  $1,800 
D)  $5,100 B

Question 4

Cost of Goods Sold is calculated on the:

Accepted Answer

A)  Post-Closing Trial Balance. 
B)  Trial Balance. 
C)  Income Statement. 
D)  Balance Sheet. 
A)  Post-Closing Trial Balance. 
B)  Trial Balance. 
C)  Income Statement. 
D)  Balance Sheet.

Question 5

Determine the ending Capital balance of a business having:
Beginning Capital of $75,000
No investments or withdrawals
Beginning inventory of $10,000
Net Purchases of $100,000
Ending inventory of $12,000
Operating expenses of $70,000
Net sales $107,000
$ ________

Accepted Answer

The answer of Determine the ending Capital balance of a...

Question 6

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

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

Question 7

The ending merchandise inventory was understated. This error would cause:

Accepted Answer

A)  assets to be understated. 
B)  assets to be overstated. 
C)  net income to be overstated. 
D)  Cost of Goods Sold to be overstated. 
A)  assets to be understated. 
B)  assets to be overstated. 
C)  net income to be overstated. 
D)  Cost of Goods Sold to be overstated.

Question 8

Which of the following is an operating expense?

Accepted Answer

A)  Salaries Expense 
B)  Payroll Tax Expense 
C)  Freight-in 
D)  Both A and B are correct. 
A)  Salaries Expense 
B)  Payroll Tax Expense 
C)  Freight-in 
D)  Both A and B are correct.

Question 9

Reversing entries are the opposite of adjusting entries.

Accepted Answer

A) True 
 B)False

Question 10

The Statement of Owner's Equity ending capital is equal to the capital on the worksheet.

Accepted Answer

A) True 
 B)False

Question 11

Other Income is used to:

Accepted Answer

A)  record payments from sales customers. 
B)  record any revenue from activities other than sales. 
C)  record all revenue. 
D)  record owner investments. 
A)  record payments from sales customers. 
B)  record any revenue from activities other than sales. 
C)  record all revenue. 
D)  record owner investments.

Question 12

Discuss the purpose of a classified balance sheet. Include a description of the major balance sheet classifications including: current assets, plant and equipment, current liabilities, and long-term liabilities.

Accepted Answer

A classified balance sheet provides more

Question 13

How is Income Summary closed if the company had a net income?

Accepted Answer

A)  Debit Capital; credit Income Summary 
B)  Debit Income Summary; credit Capital 
C)  Debit Capital; credit Withdrawals 
D)  Debit Withdrawals; credit Capital 
A)  Debit Capital; credit Income Summary 
B)  Debit Income Summary; credit Capital 
C)  Debit Capital; credit Withdrawals 
D)  Debit Withdrawals; credit Capital

Question 14

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

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

Question 15

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. This error would cause:

Accepted Answer

A)  assets to be overstated. 
B)  liabilities to be overstated. 
C)  the Capital account to be understated. 
D)  the Capital account to be overstated. 
A)  assets to be overstated. 
B)  liabilities to be overstated. 
C)  the Capital account to be understated. 
D)  the Capital account to be overstated.

Question 16

Barnes' Shoes allows a customer a discount from the original price for a defective product; Barnes issues the customer a(n):

Accepted Answer

A)  credit memorandum. 
B)  debit memorandum. 
C)  sales invoice. 
D)  inventory slip. 
A)  credit memorandum. 
B)  debit memorandum. 
C)  sales invoice. 
D)  inventory slip.

Question 17

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Accepted Answer

A) True 
 B)False

Question 18

Gross profit equals Net Sales minus Inventory Available for Sale.

Accepted Answer

A) True 
 B)False

Question 19

The entry to adjust salaries was done twice. This error would cause:

Accepted Answer

A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  revenue to be understated. 
D)  assets to be overstated. 
A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  revenue to be understated. 
D)  assets to be overstated.

Question 20

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

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

Exam 12: Completion of the Accounting Cycle for a Merchandise Company

Freight-in is:

Identify the category(s) of each of the accounts below. Current Asset Plant and Equipment Current Liabilities Long-Term Liabilities

If Net Sales is $10,500, Cost of Goods Sold is $5,400, Gross Profit is $5,100 and Operating Expenses are $1,800, what is the Net Income from Operations?

Cost of Goods Sold is calculated on the:

Determine the ending Capital balance of a business having: Beginning Capital of $75,000 No investments or withdrawals Beginning inventory of $10,000 Net Purchases of $100,000 Ending inventory of $12,000 Operating expenses of $70,000 Net sales $107,000 $ ________

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

The ending merchandise inventory was understated. This error would cause:

Which of the following is an operating expense?

Reversing entries are the opposite of adjusting entries.

The Statement of Owner's Equity ending capital is equal to the capital on the worksheet.

Other Income is used to:

Discuss the purpose of a classified balance sheet. Include a description of the major balance sheet classifications including: current assets, plant and equipment, current liabilities, and long-term liabilities.

How is Income Summary closed if the company had a net income?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. This error would cause:

Barnes' Shoes allows a customer a discount from the original price for a defective product; Barnes issues the customer a(n):

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Gross profit equals Net Sales minus Inventory Available for Sale.

The entry to adjust salaries was done twice. This error would cause:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

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

Preparing a Worksheet 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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