Question 1

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 2

Joe received $5,000 in advance for renting part of his building for 4 months.What is the entry to record the adjustment after one month has passed?

Accepted Answer

A) debit Cash; credit Rental Income 
B) debit Cash; credit Unearned Rent 
C) debit Unearned Rent,credit Rental Income 
D) debit Unearned Rent,credit Cash 
A) debit Cash; credit Rental Income 
B) debit Cash; credit Unearned Rent 
C) debit Unearned Rent,credit Rental Income 
D) debit Unearned Rent,credit Cash

Question 3

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 4

The first entry to adjust Merchandise Inventory includes:

Accepted Answer

A) a debit to Merchandise Inventory. 
B) a credit to Merchandise Inventory. 
C) a credit to Income Summary. 
D) None of these are correct. 
A) a debit to Merchandise Inventory. 
B) a credit to Merchandise Inventory. 
C) a credit to Income Summary. 
D) None of these are correct.

Question 5

The financial statement on which Unearned Rent would appear is:

Accepted Answer

A) the income statement. 
B) the balance sheet. 
C) the owner's equity statement. 
D) Unearned Rent is not reported until earned. 
A) the income statement. 
B) the balance sheet. 
C) the owner's equity statement. 
D) Unearned Rent is not reported until earned.

Question 6

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).
-$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Purchase discounts } & & & \
\hline
\end{array}$

Accepted Answer

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

Question 7

When counting supplies,several boxes were missed.This would cause:

Accepted Answer

A) Supplies to be overstated. 
B) Supplies Expense to be understated. 
C) Net Income to be overstated. 
D) All of the above are correct. 
A) Supplies to be overstated. 
B) Supplies Expense to be understated. 
C) Net Income to be overstated. 
D) All of the above are correct.

Question 8

The trial balance columns on the worksheet are populated using the:

Accepted Answer

A) general journal. 
B) general ledger. 
C) subsidiary ledger. 
D) None of the above. 
A) general journal. 
B) general ledger. 
C) subsidiary ledger. 
D) None of the above.

Question 9

On December 1,Phone Center received $4,800 for two years' rent in advance from Garrison Company.The December 31 adjusting entry that Phone Center should make is to:

Accepted Answer

A) debit Rental Income; credit Unearned Rent $2,400. 
B) debit Cash; credit Rental Income $2,400. 
C) debit Unearned Rent; credit Rental Income $200. 
D) debit Unearned Rent; credit Rent Expense $200. 
A) debit Rental Income; credit Unearned Rent $2,400. 
B) debit Cash; credit Rental Income $2,400. 
C) debit Unearned Rent; credit Rental Income $200. 
D) debit Unearned Rent; credit Rent Expense $200.

Question 10

Beginning and ending inventories are $700 and $600,respectively.The income statement debit and credit columns of the worksheet total $2,500 and $2,500,respectively,not including the adjustment amounts for beginning and ending inventories.The net income or loss for the period is:

Accepted Answer

A) $150 net income. 
B) $150 net loss. 
C) $100 net income. 
D) $100 net loss. 
A) $150 net income. 
B) $150 net loss. 
C) $100 net income. 
D) $100 net loss.

Question 11

Unearned Rent Revenue is a balance sheet account.

Accepted Answer

A) True 
 B)False

Question 12

If $6,000 was the beginning inventory,purchases were $10,000 and sales were $7,000.How much was ending inventory last accounting period?

Accepted Answer

A) $9,000 
B) $6,000 
C) $0 
D) $3,000 
A) $9,000 
B) $6,000 
C) $0 
D) $3,000

Question 13

Net Income equals:

Accepted Answer

A) Net Sales - Cost of goods sold - Operating expenses. 
B) Gross Profit - Operating expenses. 
C) Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses. 
D) All of the above are correct. 
A) Net Sales - Cost of goods sold - Operating expenses. 
B) Gross Profit - Operating expenses. 
C) Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses. 
D) All of the above are correct.

Question 14

The financial statement on which Rental Income would appear is the:

Accepted Answer

A) income statement. 
B) owner's equity statement. 
C) balance sheet. 
D) operations statement. 
A) income statement. 
B) owner's equity statement. 
C) balance sheet. 
D) operations statement.

Question 15

Interest Expense is:

Accepted Answer

A) a cost of borrowing money. 
B) included in the "Other Expenses" on the income statement. 
C) has a normal debit balance. 
D) All of the above are correct. 
A) a cost of borrowing money. 
B) included in the "Other Expenses" on the income statement. 
C) has a normal debit balance. 
D) All of the above are correct.

Question 16

Gross profit less operating expenses equals:

Accepted Answer

A) Cost of Goods Sold. 
B) net sales. 
C) net purchases. 
D) net income. 
A) Cost of Goods Sold. 
B) net sales. 
C) net purchases. 
D) net income.

Question 17

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 18

The amount of supplies used causes a decrease in Supplies and an increase in expense.

Accepted Answer

A) True 
 B)False

Question 19

When using a periodic inventory method,what account is increased when you buy merchandise inventory?

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 20

Unearned Rent is what type of account?

Accepted Answer

A) Asset 
B) Revenue 
C) Liability 
D) Expense 
A) Asset 
B) Revenue 
C) Liability 
D) Expense

Exam 11: Preparing a Worksheet for a Merchandise Company

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

Joe received $5,000 in advance for renting part of his building for 4 months.What is the entry to record the adjustment after one month has passed?

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

The first entry to adjust Merchandise Inventory includes:

The financial statement on which Unearned Rent would appear is:

When counting supplies,several boxes were missed.This would cause:

The trial balance columns on the worksheet are populated using the:

On December 1,Phone Center received $4,800 for two years' rent in advance from Garrison Company.The December 31 adjusting entry that Phone Center should make is to:

Beginning and ending inventories are $700 and $600,respectively.The income statement debit and credit columns of the worksheet total $2,500 and $2,500,respectively,not including the adjustment amounts for beginning and ending inventories.The net income or loss for the period is:

Unearned Rent Revenue is a balance sheet account.

If $6,000 was the beginning inventory,purchases were $10,000 and sales were $7,000.How much was ending inventory last accounting period?

Net Income equals:

The financial statement on which Rental Income would appear is the:

Interest Expense is:

Gross profit less operating expenses equals:

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

The amount of supplies used causes a decrease in Supplies and an increase in expense.

When using a periodic inventory method,what account is increased when you buy merchandise inventory?

Unearned Rent is what type of account?

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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