Question 1

Which of the following transactions could cause the Income Summary account to be debited and Capital to be credited?

Accepted Answer

A)  The business earned a net loss for the period. 
B)  The business earned a net income for the period. 
C)  Closed the Owner's Capital account 
D)  A credit balance in the Owner's Withdrawals account 
A)  The business earned a net loss for the period. 
B)  The business earned a net income for the period. 
C)  Closed the Owner's Capital account 
D)  A credit balance in the Owner's Withdrawals account

Question 2

Administrative Expenses include:

Accepted Answer

A)  Sales - Salaries Expense. 
B)  Delivery Expense. 
C)  Advertising Expense. 
D)  Accounting - Staff Salaries Expenses. 
A)  Sales - Salaries Expense. 
B)  Delivery Expense. 
C)  Advertising Expense. 
D)  Accounting - Staff Salaries Expenses.

Question 3

The amount for Cost of Goods Sold is found on the worksheet after Revenue.

Accepted Answer

A) True 
 B)False

Question 4

The following accounts are on the Balance Sheet section of Scents Galore worksheet for the date November 30, 201X. Please prepare a Classified Balance Sheet using the information below.
Additional information: Withdrawals for the period are $4, and Net Income is $12.

Accepted Answer

The answer of The following accounts are on the Balance...

Question 5

When calculating Cost of Goods Sold on the Income Statement, the beginning inventory and not the ending inventory value is required.

Accepted Answer

A) True 
 B)False

Question 6

Which amount is directly found on the worksheet?

Accepted Answer

A)  Cost of Goods Sold 
B)  Gross Profit 
C)  Net Sales 
D)  None of the above 
A)  Cost of Goods Sold 
B)  Gross Profit 
C)  Net Sales 
D)  None of the above

Question 7

Merchandise purchased for resale under the perpetual inventory method is added to:

Accepted Answer

A)  Merchandise Inventory. 
B)  Supplies. 
C)  Purchases. 
D)  Inventory Expense. 
A)  Merchandise Inventory. 
B)  Supplies. 
C)  Purchases. 
D)  Inventory Expense.

Question 8

The post-closing trial balance contains:

Accepted Answer

A)  assets and liabilities. 
B)  all accounts with balances. 
C)  only permanent accounts. 
D)  All of these answers are correct. 
A)  assets and liabilities. 
B)  all accounts with balances. 
C)  only permanent accounts. 
D)  All of these answers are correct.

Question 9

The amount shown in the balance sheet debit column of worksheet for Merchandise Inventory is:

Accepted Answer

A)  the Cost of Goods Sold. 
B)  net purchases + beginning merchandise inventory. 
C)  the ending inventory. 
D)  the beginning inventory. 
A)  the Cost of Goods Sold. 
B)  net purchases + beginning merchandise inventory. 
C)  the ending inventory. 
D)  the beginning inventory.

Question 10

Which of the following accounts will NOT appear on the post-closing trial balance?

Accepted Answer

A)  Accounts Receivable 
B)  Cash 
C)  Accounts Payable 
D)  Revenue 
A)  Accounts Receivable 
B)  Cash 
C)  Accounts Payable 
D)  Revenue

Question 11

Beginning inventory is adjusted by debiting Merchandise Inventory and crediting Income Summary.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following could appear in an adjusting entry, closing entry, and reversing entry?

Accepted Answer

A)  Salary Expense 
B)  Withdrawals 
C)  Depreciation Expense, Buildings 
D)  Cash 
A)  Salary Expense 
B)  Withdrawals 
C)  Depreciation Expense, Buildings 
D)  Cash

Question 13

Selling expenses include:

Accepted Answer

A)  Advertising Expense. 
B)  Freight-in. 
C)  Office Supplies Expense. 
D)  Sales Returns and Allowances. 
A)  Advertising Expense. 
B)  Freight-in. 
C)  Office Supplies Expense. 
D)  Sales Returns and Allowances.

Question 14

The following amounts are on the John's Clothing worksheet for the month ended March 31
Required: Calculate the following:
a) Net sales
b) Net purchases
c) Net cost of purchases
d) Cost of goods available for sale
e) Cost of goods sold
f) Gross profit

Accepted Answer

a) $44, b)

Question 15

After the closing entries have been posted:

Accepted Answer

A)  the temporary accounts are zeroed out. 
B)  the Capital account includes the current net profit or loss. 
C)  the post-closing trial balance is prepared. 
D)  All of these answers are correct. 
A)  the temporary accounts are zeroed out. 
B)  the Capital account includes the current net profit or loss. 
C)  the post-closing trial balance is prepared. 
D)  All of these answers are correct.

Question 16

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 17

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 18

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 19

The following accounts are on the Balance Sheet section of Great Plains Camping worksheet for the month ended January 31, 201x. Required: Prepare a classified balance sheet.   Additional information: Withdrawals for the period are $2, and Net Income is $3.

Accepted Answer

The answer of The following accounts are on the Balance...

Question 20

Which of the following could be recorded as a reversing entry?

Accepted Answer

A)  Depreciation of building 
B)  Accrual of salary expense 
C)  Allocation of prepaid rent in the current period 
D)  Cash 
A)  Depreciation of building 
B)  Accrual of salary expense 
C)  Allocation of prepaid rent in the current period 
D)  Cash

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

Which of the following transactions could cause the Income Summary account to be debited and Capital to be credited?

Administrative Expenses include:

The amount for Cost of Goods Sold is found on the worksheet after Revenue.

The following accounts are on the Balance Sheet section of Scents Galore worksheet for the date November 30, 201X. Please prepare a Classified Balance Sheet using the information below. Additional information: Withdrawals for the period are $4, and Net Income is $12.

When calculating Cost of Goods Sold on the Income Statement, the beginning inventory and not the ending inventory value is required.

Which amount is directly found on the worksheet?

Merchandise purchased for resale under the perpetual inventory method is added to:

The post-closing trial balance contains:

The amount shown in the balance sheet debit column of worksheet for Merchandise Inventory is:

Which of the following accounts will NOT appear on the post-closing trial balance?

Beginning inventory is adjusted by debiting Merchandise Inventory and crediting Income Summary.

Which of the following could appear in an adjusting entry, closing entry, and reversing entry?

Selling expenses include:

The following amounts are on the John's Clothing worksheet for the month ended March 31 Required: Calculate the following: a) Net sales b) Net purchases c) Net cost of purchases d) Cost of goods available for sale e) Cost of goods sold f) Gross profit

After the closing entries have been posted:

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). -

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

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 following accounts are on the Balance Sheet section of Great Plains Camping worksheet for the month ended January 31, 201x. Required: Prepare a classified balance sheet. Additional information: Withdrawals for the period are $2, and Net Income is $3.

Which of the following could be recorded as a reversing entry?

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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