Question 1

The left and right columns on the financial statements are used for debits and credits.

Accepted Answer

A) True 
 B)False

Question 2

In which section does Interest Revenue appear in the Income Statement?

Accepted Answer

A)  Other Income 
B)  Other Expense 
C)  Revenue 
D)  Administrative Expenses 
A)  Other Income 
B)  Other Expense 
C)  Revenue 
D)  Administrative Expenses

Question 3

When closing income statement accounts having debit balances, which of the following accounts will also be closed?

Accepted Answer

A)  Purchases Returns and Allowances 
B)  Merchandise Inventory 
C)  Sales Returns and Allowances 
D)  Revenue 
A)  Purchases Returns and Allowances 
B)  Merchandise Inventory 
C)  Sales Returns and Allowances 
D)  Revenue

Question 4

The following amounts are on the Bear Sporting Goods worksheet for the month ended October 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) $52, b)

Question 5

What is the name of the revenue account used by merchandise companies?

Accepted Answer

A)  Sales 
B)  Interest Income 
C)  Merchandise Inventory 
D)  Sales Discount 
A)  Sales 
B)  Interest Income 
C)  Merchandise Inventory 
D)  Sales Discount

Question 6

Determine the ending Capital amount of a business having:
Beginning Capital amount of $25,000
Withdrawals of $ 2,500
Net sales of $250,000
Net purchases of $85,000
Freight-in of $2,000
Beginning inventory of $6,000
Ending inventory of $7,000
Operating expenses of $ 30,000
$ ________

Accepted Answer

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

Question 7

Adjusting journal entries still need to be made after the worksheet is completed; otherwise the account balances will not be correct.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Which of the following accounts will appear on the post-closing trial balance?

Accepted Answer

A)  Capital 
B)  Purchases 
C)  Supplies Expense 
D)  Withdrawals 
A)  Capital 
B)  Purchases 
C)  Supplies Expense 
D)  Withdrawals

Question 10

A company paid next month's rent in advance. This would be classified as a(n):

Accepted Answer

A)  Current asset. 
B)  Expense. 
C)  Revenue. 
D)  Contra-Asset. 
A)  Current asset. 
B)  Expense. 
C)  Revenue. 
D)  Contra-Asset.

Question 11

Other Expense is used to record:

Accepted Answer

A)  selling expenses. 
B)  administrative expenses. 
C)  operating expenses. 
D)  interest expenses. 
A)  selling expenses. 
B)  administrative expenses. 
C)  operating expenses. 
D)  interest expenses.

Question 12

The post-closing trial balance is prepared from:

Accepted Answer

A)  the income statement column on the worksheet. 
B)  the balance sheet columns on the worksheet. 
C)  the trial balance columns on the worksheet. 
D)  the general ledger. 
A)  the income statement column on the worksheet. 
B)  the balance sheet columns on the worksheet. 
C)  the trial balance columns on the worksheet. 
D)  the general ledger.

Question 13

Net Sales - Cost of Goods Sold is equal to:

Accepted Answer

A)  Net Income from Operations. 
B)  Operating Expenses. 
C)  Gross Profit. 
D)  Selling Expenses. 
A)  Net Income from Operations. 
B)  Operating Expenses. 
C)  Gross Profit. 
D)  Selling Expenses.

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 amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is:

Accepted Answer

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

Question 16

Ending inventory is adjusted by debiting Merchandise Inventory and crediting Capital.

Accepted Answer

A) True 
 B)False

Question 17

The adjusting entry to record Service income that is earned would involve a debit to Service Income and a credit to Unearned Service Revenue.

Accepted Answer

A) True 
 B)False

Question 18

Cost of Goods Sold includes:

Accepted Answer

A)  Freight-in. 
B)  Freight-out. 
C)  Supplies Expense. 
D)  Sales Discounts. 
A)  Freight-in. 
B)  Freight-out. 
C)  Supplies Expense. 
D)  Sales Discounts.

Question 19

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

Plant and Equipment includes which of the following?

Accepted Answer

A)  Mortgage Payable 
B)  Supplies 
C)  Accumulated Depreciation on Equipment 
D)  All of these are correct. 
A)  Mortgage Payable 
B)  Supplies 
C)  Accumulated Depreciation on Equipment 
D)  All of these are correct.

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

The left and right columns on the financial statements are used for debits and credits.

In which section does Interest Revenue appear in the Income Statement?

When closing income statement accounts having debit balances, which of the following accounts will also be closed?

The following amounts are on the Bear Sporting Goods worksheet for the month ended October 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

What is the name of the revenue account used by merchandise companies?

Determine the ending Capital amount of a business having: Beginning Capital amount of $25,000 Withdrawals of $ 2,500 Net sales of $250,000 Net purchases of $85,000 Freight-in of $2,000 Beginning inventory of $6,000 Ending inventory of $7,000 Operating expenses of $ 30,000 $ ________

Adjusting journal entries still need to be made after the worksheet is completed; otherwise the account balances will not be correct.

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). -

Which of the following accounts will appear on the post-closing trial balance?

A company paid next month's rent in advance. This would be classified as a(n):

Other Expense is used to record:

The post-closing trial balance is prepared from:

Net Sales - Cost of Goods Sold is equal to:

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 amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is:

Ending inventory is adjusted by debiting Merchandise Inventory and crediting Capital.

The adjusting entry to record Service income that is earned would involve a debit to Service Income and a credit to Unearned Service Revenue.

Cost of Goods Sold includes:

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

Plant and Equipment includes which of the following?

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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