Question 1

Under a perpetual inventory system, a shortage in inventory requires an adjusting entry that

Accepted Answer

A) debits Cost of Goods Sold and credits Accounts Payable. 
B) debits Merchandise Inventory and credits Cost of Goods Sold. 
C) debits Cost of Goods Sold and credits Merchandise Inventory. 
D) debits Accounts Payable and credits Merchandise Inventory. 
E) debits Accounts Payable and credits Cost of Goods Sold. 
A) debits Cost of Goods Sold and credits Accounts Payable. 
B) debits Merchandise Inventory and credits Cost of Goods Sold. 
C) debits Cost of Goods Sold and credits Merchandise Inventory. 
D) debits Accounts Payable and credits Merchandise Inventory. 
E) debits Accounts Payable and credits Cost of Goods Sold.

Question 2

Net income appears on the work sheet in the

Accepted Answer

A) Adjusted Trial Balance Debit column. 
B) Balance Sheet Debit column. 
C) Income Statement Debit column. 
D) Income Statement Credit column. 
E) Adjustments Debit column. 
A) Adjusted Trial Balance Debit column. 
B) Balance Sheet Debit column. 
C) Income Statement Debit column. 
D) Income Statement Credit column. 
E) Adjustments Debit column.

Question 3

This inventory system will debit Purchases when goods are bought

Accepted Answer

A) Periodic Inventory System 
B) Purchase Inventory System 
C) Perpetual Inventory System 
D) All of the above 
A) Periodic Inventory System 
B) Purchase Inventory System 
C) Perpetual Inventory System 
D) All of the above

Question 4

The inventory system where a business continually maintains a cost record of each item in stock

Accepted Answer

A) Periodic Inventory System 
B) Perpetual Inventory System 
C) Inventory Cost Control System 
D) None of the above. 
A) Periodic Inventory System 
B) Perpetual Inventory System 
C) Inventory Cost Control System 
D) None of the above.

Question 5

On the work sheet, Purchases Discounts appears in the

Accepted Answer

A) Trial Balance Debit column and the Income Statement Credit column. 
B) Trial Balance Credit column and the Balance Sheet Credit column. 
C) Trial Balance Debit column and the Income Statement Debit column. 
D) Trial Balance Credit column and the Income Statement Credit column. 
E) Adjustments Debit column and the Income Statement Credit column. 
A) Trial Balance Debit column and the Income Statement Credit column. 
B) Trial Balance Credit column and the Balance Sheet Credit column. 
C) Trial Balance Debit column and the Income Statement Debit column. 
D) Trial Balance Credit column and the Income Statement Credit column. 
E) Adjustments Debit column and the Income Statement Credit column.

Question 6

Adjusting entries are journalized and posted in a noncomputerized system

Accepted Answer

A) after the closing entries have been journalized. 
B) after the trial balance is prepared but before the work sheet is completed. 
C) after the worksheet is completed but before the financial statements are prepared. 
D) after the adjustments are entered in the work sheet but before the work sheet is completed. 
E) at none of these times. 
A) after the closing entries have been journalized. 
B) after the trial balance is prepared but before the work sheet is completed. 
C) after the worksheet is completed but before the financial statements are prepared. 
D) after the adjustments are entered in the work sheet but before the work sheet is completed. 
E) at none of these times.

Question 7

The Accounts Receivable balance would appear in which column of the worksheet

Accepted Answer

A) Income Statement, DR 
B) Income Statement, CR 
C) Balance Sheet, DR 
D) Balance Sheet, CR 
A) Income Statement, DR 
B) Income Statement, CR 
C) Balance Sheet, DR 
D) Balance Sheet, CR

Question 8

In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?

Accepted Answer

A) Adjustments and Balance Sheet columns 
B) Trial Balance and Adjustments columns 
C) Adjustments and Income Statement columns 
D) Trial Balance and Income Statement columns 
E) Trial Balance and Balance Sheet columns 
A) Adjustments and Balance Sheet columns 
B) Trial Balance and Adjustments columns 
C) Adjustments and Income Statement columns 
D) Trial Balance and Income Statement columns 
E) Trial Balance and Balance Sheet columns

Question 9

Unearned Revenue appears in the

Accepted Answer

A) Trial Balance Credit column, Adjustments Debit column, Income Statement Debit column, and Balance Sheet Debit column of a work sheet. 
B) Trial Balance Debit column, Adjustments Credit column, Adjusted Trial Balance Debit column, and Balance Sheet Credit column of a work sheet. 
C) Trial Balance Credit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet. 
D) Trial Balance Credit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Income Statement Credit column of a work sheet. 
E) Trial Balance Debit column, Adjustments Debit column, Adjusted Trial Balance Debit column, and Balance Sheet Debit column of a work sheet. 
A) Trial Balance Credit column, Adjustments Debit column, Income Statement Debit column, and Balance Sheet Debit column of a work sheet. 
B) Trial Balance Debit column, Adjustments Credit column, Adjusted Trial Balance Debit column, and Balance Sheet Credit column of a work sheet. 
C) Trial Balance Credit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet. 
D) Trial Balance Credit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Income Statement Credit column of a work sheet. 
E) Trial Balance Debit column, Adjustments Debit column, Adjusted Trial Balance Debit column, and Balance Sheet Debit column of a work sheet.

Question 10

Zamora Corporation uses the perpetual inventory system. The following information is presented as of December 31, the end of its fiscal year:
Beginning inventory, January 1
$147,572
Merchandise purchased during the year
68,950
Merchandise sold during the year
112,341
Physical count of ending inventory, December 31
102,789
Instructions:
Prepare the journal entry to adjust Merchandise Inventory at year end on page 10.

Accepted Answer

The answer of Zamora Corporation uses the perpetual inventory system....

Question 11

The Income Summary account is used to adjust inventory (with the perpetual inventory system) and record closing entries.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following account types are NOT located on the worksheet's balance sheet?

Accepted Answer

A) Assets 
B) Drawing 
C) Purchase Discounts 
D) Liabilities 
A) Assets 
B) Drawing 
C) Purchase Discounts 
D) Liabilities

Question 13

For companies using the periodic inventory system, explain how the Merchandise Inventory account is handled in the accounting records through the journal entries and the work sheet.

Accepted Answer

Merchandise Inventory is adjusted at yea

Question 14

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Accepted Answer

A) True 
 B)False

Question 15

Sales appear under which worksheet column and has the following normal balance:

Accepted Answer

A) Income Statement, DR 
B) Income Statement, CR 
C) Balance Sheet, CR 
D) Balance Sheet, DR 
A) Income Statement, DR 
B) Income Statement, CR 
C) Balance Sheet, CR 
D) Balance Sheet, DR

Question 16

When goods are bought under the perpetual inventory system, Merchandise Inventory is credited.

Accepted Answer

A) True 
 B)False

Question 17

If the physical count of inventory is more than the amount on the accounting records, what account is debited?

Accepted Answer

A) Merchandise Inventory 
B) Cost of Goods Sold 
C) Sales 
D) Misc.Expense 
A) Merchandise Inventory 
B) Cost of Goods Sold 
C) Sales 
D) Misc.Expense

Question 18

If the Income Summary account has a debit of $60,000 and a credit of $65,000 after adjusting entries have been journalized and posted, $65,000 represents the ending inventory.

Accepted Answer

A) True 
 B)False

Question 19

Interest Income would appear under which column of the worksheet

Accepted Answer

A) Income Statement, DR 
B) Balance Sheet, DR 
C) Income Statement, CR 
D) Balance Sheet, CR 
A) Income Statement, DR 
B) Balance Sheet, DR 
C) Income Statement, CR 
D) Balance Sheet, CR

Question 20

Discuss the accounting principle served by crediting amounts received (which will not be earned during the present fiscal period) to an Unearned Revenue account instead of to the Revenue account. Give an example of a business in which this might occur. Explain how failure to make an adjustment to the Unearned Revenue account and the Revenue account would affect the financial statements.

Accepted Answer

The revenue recognition principle record

Under a perpetual inventory system, a shortage in inventory requires an adjusting entry that

Net income appears on the work sheet in the

This inventory system will debit Purchases when goods are bought

The inventory system where a business continually maintains a cost record of each item in stock

On the work sheet, Purchases Discounts appears in the

Adjusting entries are journalized and posted in a noncomputerized system

The Accounts Receivable balance would appear in which column of the worksheet

In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?

Unearned Revenue appears in the

The Income Summary account is used to adjust inventory (with the perpetual inventory system) and record closing entries.

Which of the following account types are NOT located on the worksheet's balance sheet?

For companies using the periodic inventory system, explain how the Merchandise Inventory account is handled in the accounting records through the journal entries and the work sheet.

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Sales appear under which worksheet column and has the following normal balance:

When goods are bought under the perpetual inventory system, Merchandise Inventory is credited.

If the physical count of inventory is more than the amount on the accounting records, what account is debited?

If the Income Summary account has a debit of $60,000 and a credit of $65,000 after adjusting entries have been journalized and posted, $65,000 represents the ending inventory.

Interest Income would appear under which column of the worksheet

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance Including Appendix

Bank Accounts and Cash Funds

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Financial Statements, Closing Entries, and Reversing Entries

Filters

Exam 11: Work Sheet and Adjusting Entries

Under a perpetual inventory system, a shortage in inventory requires an adjusting entry that

Net income appears on the work sheet in the

This inventory system will debit Purchases when goods are bought

The inventory system where a business continually maintains a cost record of each item in stock

On the work sheet, Purchases Discounts appears in the

Adjusting entries are journalized and posted in a noncomputerized system

The Accounts Receivable balance would appear in which column of the worksheet

In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?

Unearned Revenue appears in the

The Income Summary account is used to adjust inventory (with the perpetual inventory system) and record closing entries.

Which of the following account types are NOT located on the worksheet's balance sheet?

For companies using the periodic inventory system, explain how the Merchandise Inventory account is handled in the accounting records through the journal entries and the work sheet.

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Sales appear under which worksheet column and has the following normal balance:

When goods are bought under the perpetual inventory system, Merchandise Inventory is credited.

If the physical count of inventory is more than the amount on the accounting records, what account is debited?

If the Income Summary account has a debit of $60,000 and a credit of $65,000 after adjusting entries have been journalized and posted, $65,000 represents the ending inventory.

Interest Income would appear under which column of the worksheet

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance Including Appendix

Bank Accounts and Cash Funds

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Financial Statements, Closing Entries, and Reversing Entries

Filters