Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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)$42, b)$

Question 4

The post-closing trial balance would include Sales and Purchases.

Accepted Answer

A) True 
 B)False

Question 5

Determine the beginning inventory of a business having:
Beginning Capital balance of $11,000
No additional investments or withdrawals
Net sales of $43,500
Net purchases $26,000
Ending inventory of $4,250
Ending Capital balance of $10,000
Operating expenses of $16,500
$ ________

Accepted Answer

The answer of Determine the beginning inventory of a business...

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 calculation of Net Purchases does not include:

Accepted Answer

A) Purchases Returns and Allowances. 
B) Purchases Discounts. 
C) Purchases. 
D) Freight-in. 
A) Purchases Returns and Allowances. 
B) Purchases Discounts. 
C) Purchases. 
D) Freight-in.

Question 8

Reversing entries occur at the beginning of the accounting period and:

Accepted Answer

A) help to reduce potential errors. 
B) simplify the bookkeeping associated with accruals from the prior period. 
C) reverse the adjusting entries. 
D) All of the above are correct. 
A) help to reduce potential errors. 
B) simplify the bookkeeping associated with accruals from the prior period. 
C) reverse the adjusting entries. 
D) All of the above are correct.

Question 9

Land is listed first under Plant, Property and Equipment.

Accepted Answer

A) True 
 B)False

Question 10

The entry to close the Income Summary to Capital was omitted, there was a net income. This error would cause:

Accepted Answer

A) the Capital account to be understated. 
B) net income to be overstated. 
C) net income to be understated. 
D) the Capital account to be overstated. 
A) the Capital account to be understated. 
B) net income to be overstated. 
C) net income to be understated. 
D) the Capital account to be overstated.

Question 11

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 12

Net Sales - Cost of Goods Sold is equal to:

Accepted Answer

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

Question 13

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 14

The general ledger balances are used to prepare the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 15

Reversing entries are done when assets or liabilities are increasing and have no previous balance.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an operating expense?

Accepted Answer

A) Salaries Expense 
B) Payroll Tax Expense 
C) Purchases 
D) Both A and B are correct. 
A) Salaries Expense 
B) Payroll Tax Expense 
C) Purchases 
D) Both A and B are correct.

Question 17

Discuss the purpose of a detailed income statement. Briefly describe the major kinds of business activities covered on a detailed income statement.

Accepted Answer

A detailed income statement provides inf

Question 18

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

Question 19

Which of the following is not an operating expense?

Accepted Answer

A) Payroll Tax Expense 
B) Freight-in 
C) Supplies Expense 
D) Salaries Expense 
A) Payroll Tax Expense 
B) Freight-in 
C) Supplies Expense 
D) Salaries Expense

Question 20

Net Sales are:

Accepted Answer

A) Gross Sales + Sales Discounts + Sales Returns and Allowances. 
B) Gross Sales - Sales Discounts - Sales Returns and Allowances. 
C) Revenue - Sales Discounts + Sales Returns and Allowances. 
D) Gross Sales + Sales Discounts - Sales Returns and Allowances. 
A) Gross Sales + Sales Discounts + Sales Returns and Allowances. 
B) Gross Sales - Sales Discounts - Sales Returns and Allowances. 
C) Revenue - Sales Discounts + Sales Returns and Allowances. 
D) Gross Sales + Sales Discounts - Sales Returns and Allowances.

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

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

Other Income is used to:

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

The post-closing trial balance would include Sales and Purchases.

Determine the beginning inventory of a business having: Beginning Capital balance of $11,000 No additional investments or withdrawals Net sales of $43,500 Net purchases $26,000 Ending inventory of $4,250 Ending Capital balance of $10,000 Operating expenses of $16,500 $ ________

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 calculation of Net Purchases does not include:

Reversing entries occur at the beginning of the accounting period and:

Land is listed first under Plant, Property and Equipment.

The entry to close the Income Summary to Capital was omitted, there was a net income. 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). -

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 general ledger balances are used to prepare the post-closing trial balance.

Reversing entries are done when assets or liabilities are increasing and have no previous balance.

Which of the following is an operating expense?

Discuss the purpose of a detailed income statement. Briefly describe the major kinds of business activities covered on a detailed income statement.

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

Which of the following is not an operating expense?

Net Sales are:

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

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters