Question 1

Net Sales + Sales Discounts + Sales Returns and Allowances equals:

Accepted Answer

A) Net Loss. 
B) Gross Sales. 
C) Net Income from Operations. 
D) Gross Profit. 
A) Net Loss. 
B) Gross Sales. 
C) Net Income from Operations. 
D) Gross Profit.

Question 2

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 3

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 4

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 5

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

Accepted Answer

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

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 income statement is prepared from the:

Accepted Answer

A) Post-Closing Trial Balance. 
B) worksheet. 
C) general journal. 
D) statement of owner's equity. 
A) Post-Closing Trial Balance. 
B) worksheet. 
C) general journal. 
D) statement of owner's equity.

Question 8

Liquidity is:

Accepted Answer

A) how quickly loans can be paid. 
B) how easily an asset can be converted to cash. 
C) how much cash a company has on its balance sheet. 
D) None of the above are correct. 
A) how quickly loans can be paid. 
B) how easily an asset can be converted to cash. 
C) how much cash a company has on its balance sheet. 
D) None of the above are correct.

Question 9

Which of the following adjustments may be reserved?

Accepted Answer

A) The adjustment to Record Depreciation Expense 
B) The adjustment to Allocate Prepaid Insurance to the current period 
C) The adjustment to Accrue Salaries Payable 
D) The adjustment to determine Supplies Expense for the period 
A) The adjustment to Record Depreciation Expense 
B) The adjustment to Allocate Prepaid Insurance to the current period 
C) The adjustment to Accrue Salaries Payable 
D) The adjustment to determine Supplies Expense for the period

Question 10

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. This error would cause:

Accepted Answer

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

Question 11

If Net Sales is $8,000, Cost of Goods Sold is $3,000, Gross Profit is $5,000 and Operating Expenses are $1,000, what is the Net Income from Operations?

Accepted Answer

A) $2,000 
B) $4,000 
C) $1,000 
D) $3,000 
A) $2,000 
B) $4,000 
C) $1,000 
D) $3,000

Question 12

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 13

The following amounts are on the Riley's Clothing worksheet for the month ended March 30.
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)$34, b)$

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).
-Prepare the closing entries from the following information on the PC Pros Company worksheet income statement columns.

Accepted Answer

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

Question 15

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 16

The statement of owner's equity ending capital is equal to the capital on the worksheet.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

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

Net Sales + Sales Discounts + Sales Returns and Allowances equals:

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). -

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). -

Merchandise purchased for resale under the periodic inventory method is added 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 income statement is prepared from the:

Liquidity is:

Which of the following adjustments may be reserved?

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. This error would cause:

If Net Sales is $8,000, Cost of Goods Sold is $3,000, Gross Profit is $5,000 and Operating Expenses are $1,000, what is the Net Income from Operations?

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 amounts are on the Riley's Clothing worksheet for the month ended March 30. 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

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 statement of owner's equity ending capital is equal to the capital on the worksheet.

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 balance sheet debit column of worksheet for Merchandise Inventory is:

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

Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.

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

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