Question
Question 1
3 out of 3 points
Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?
Question 2
3 out of 3 points
The first step in posting involves
Question 3
3 out of 3 points
Credits
Question 4
3 out of 3 points
The first step in the recording process is to
Question 5
3 out of 3 points
Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a
Question 6
3 out of 3 points
The chart of accounts is a
Question 7
3 out of 3 points
Equipment is classified in the balance sheet as
Question 8
3 out of 3 points
The first required step in the accounting cycle is
Question 9
3 out of 3 points
The operating cycle of a company is the average time that is required to go from cash to
Question 10
3 out of 3 points
Correcting entries are made
Question 11
3 out of 3 points
The information for preparing a trial balance on a worksheet is obtained from
Question 12
3 out of 3 points
A post-closing trial balance will show
Question 13
3 out of 3 points
All of the following statements about the post-closing trial balance are correct except it
Question 14
3 out of 3 points
Which one of the following is not an enhancing quality of useful information?
Question 15
3 out of 3 points
Accounts often need to be adjusted because
Question 16
3 out of 3 points
Dinosaur Junior Corporation purchased a one-year insurance policy in January 2015 for $75,000. The insurance policy is in effect from May 2015 through April 2016. If the company neglects to make the proper year-end adjustment for the expired insurance
Question 17
3 out of 3 points
The balance in the Prepaid Rent account before adjustment at the end of the year is $21,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is to
Question 18
3 out of 3 points
A law firm received $3,000 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause
Question 19
0 out of 3 points
If an adjusting entry is not made for an accrued revenue
Question 20
3 out of 3 points
Financial information that is capable of making a difference in a decision is
0 out of 3 points
Fat Possum’s Service Shop started the year with total assets of $330,000 and total liabilities of $2400,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum’s Service Shop for the year was
Question 22
3 out of 3 points
The accounting process involves all of the following except
Question 23
3 out of 3 points
Accounting consists of three basic activities which are related to economic events of an organization. These include
Question 24
3 out of 3 points
The final step in solving an ethical dilemma is to
Question 25
3 out of 3 points
Revenues would not result from
Question 1
3 out of 3 points
Sales revenue less cost of goods sold is called
Question 2
3 out of 3 points
The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit
Question 3
3 out of 3 points
A merchandising company using a perpetual system will make
Question 4
3 out of 3 points
Net income is gross profit less
Question 5
3 out of 3 points
Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using
Question 6
3 out of 3 points
A company just starting business made the following four inventory purchases in June:
June 1 150 units $ 390
June 10 200 units 585
June 15 200 units 630
June 28 150 units 510
$2,115
A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
Question 7
3 out of 3 points
Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories:
Product Cost Market
A $112,000 $120,000
B 80,000 76,000
C 155,000 162,000
If Alfalfa applies the LCM basis, the value of the inventory reported on the balance sheet would be Question 8
3 out of 3 points
Inventoriable costs include all of the following except the
Question 9
3 out of 3 points
Romanoff Industries had the following inventory transactions occur during 2015:
Units Cost/unit
2/1/15 Purchase 54 $45
3/14/15 Purchase 93 $47
5/1/15 Purchase 66 $49
The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars)
Question 10
3 out of 3 points
To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a
Question 11
3 out of 3 points
Which of the following receivables would not be classified as an “other receivable”?
Question 12
3 out of 3 points
When a note receivable is dishonored
Question 13
3 out of 3 points
Claims for which formal instruments of credit are issued as proof of the debt are
Question 14
3 out of 3 points
The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts receivable of $60,000 and $90,000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Danielle?
Question 15
3 out of 3 points
Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?
Question 16
3 out of 3 points
A customer charges a treadmill at Annie’s Sport Shop. The price is $4,000 and the financing charge is 6% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer’s account.
What is the amount of the finance charge?
Question 17
3 out of 3 points
If a company sells its accounts receivables to a factor
Question 18
3 out of 3 points
Maximum benefit from independent internal verification is obtained when
Question 19
3 out of 3 points
The daily cash count of cash register receipts made by department supervisors is an example of
Question 20
3 out of 3 points
Control over cash disbursements is generally more effective when
Question 21
3 out of 3 points
Cash equivalents could include each of the following except
Question 22
3 out of 3 points
The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer’s check for $1,300 was returned because it was NSF. A customer’s check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was
Question 23
3 out of 3 points
Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation:
Cash balance per books, 8/31 $19,500
Deposits in transit 900
Notes receivable and interest collected by bank 4,800
Bank charge for check printing 120
Outstanding checks 12,000
NSF check 1,020
The adjusted cash balance per books on August 31 is
Question 24
3 out of 3 points
The custodian of a company asset should
Question 25
3 out of 3 points
A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would
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