Question 1

Freight-in is

Accepted Answer

A)  a Cost of Selling Goods. 
B)  a Cost of Purchasing Goods. 
C)  recorded as an Operating Expense. 
D)  recorded as an asset. 
A)  a Cost of Selling Goods. 
B)  a Cost of Purchasing Goods. 
C)  recorded as an Operating Expense. 
D)  recorded as an asset. B

Question 2

Other Expense is used to record

Accepted Answer

A)  selling expenses. 
B)  administrative expenses. 
C)  operating expenses. 
D)  non-operating expenses. 
A)  selling expenses. 
B)  administrative expenses. 
C)  operating expenses. 
D)  non-operating expenses. D

Question 3

Accounts payable is a(n)

Accepted Answer

A)  current liability. 
B)  long-term liability. 
C)  current asset. 
D)  operating expense. 
A)  current liability. 
B)  long-term liability. 
C)  current asset. 
D)  operating expense. A

Question 4

In what category in a classified balance sheet is Store Equipment found?

Accepted Answer

A)  Plant and Equipment 
B)  Current Liabilities 
C)  Current Assets 
D)  Owner's Equity 
A)  Plant and Equipment 
B)  Current Liabilities 
C)  Current Assets 
D)  Owner's Equity

Question 5

Operating expenses that are not related to the selling of goods are administrative expenses.

Accepted Answer

A) True 
 B)False

Question 6

Other Income is used to

Accepted Answer

A)  record income from sales. 
B)  record any revenue from activities other than sales. 
C)  record all revenue. 
D)  record owner investments. 
A)  record income from sales. 
B)  record any revenue from activities other than sales. 
C)  record all revenue. 
D)  record owner investments.

Question 7

Net income from operations plus other income minus other expenses equals net income.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following could be recorded as a reversing entry?

Accepted Answer

A)  Depreciation of building 
B)  Accrual of interest expense 
C)  Allocation of prepaid rent in the current period 
D)  Correction of an error 
A)  Depreciation of building 
B)  Accrual of interest expense 
C)  Allocation of prepaid rent in the current period 
D)  Correction of an error

Question 9

To determine how much a company has discounted payments from its customers, it should review the

Accepted Answer

A)  Cost of Goods Sold account. 
B)  Inventory account. 
C)  Sales Returns & Allowances account. 
D)  Sales Discounts account. 
A)  Cost of Goods Sold account. 
B)  Inventory account. 
C)  Sales Returns & Allowances account. 
D)  Sales Discounts account.

Question 10

The capital account in the ledger agrees with the balance sheet

Accepted Answer

A)  after the adjusting entries have been posted. 
B)  after the closing entries have been posted. 
C)  after the income statement has been prepared. 
D)  after posting the reversing entries. 
A)  after the adjusting entries have been posted. 
B)  after the closing entries have been posted. 
C)  after the income statement has been prepared. 
D)  after posting the reversing entries.

Question 11

If Net Sales is $7,000, Cost of Goods Sold is $3,000, Gross Profit is $4,000 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

To determine how much merchandise a company has had returned from its customers, it should review the

Accepted Answer

A)  Cost of Goods Sold account. 
B)  Inventory account. 
C)  Sales Returns & Allowances account. 
D)  Sales Discounts account. 
A)  Cost of Goods Sold account. 
B)  Inventory account. 
C)  Sales Returns & Allowances account. 
D)  Sales Discounts account.

Question 13

In closing entries, the Income Summary account is closed to the Capital account after Withdrawals.

Accepted Answer

A) True 
 B)False

Question 14

When calculating Gross Profit on the Income Statement, the Net Sales and Cost of Goods Sold values are both required.

Accepted Answer

A) True 
 B)False

Question 15

The income statement lists regular business expenses under the heading

Accepted Answer

A)  current expenses. 
B)  operating debts. 
C)  liabilities. 
D)  operating expenses. 
A)  current expenses. 
B)  operating debts. 
C)  liabilities. 
D)  operating expenses.

Question 16

The entry to adjust salaries was done twice. This error would cause

Accepted Answer

A)  liabilities to be understated. 
B)  liabilities to be overstated. 
C)  expenses to be understated. 
D)  Capital to be overstated. 
A)  liabilities to be understated. 
B)  liabilities to be overstated. 
C)  expenses to be understated. 
D)  Capital to be overstated.

Question 17

Determine the ending Capital amount of a business having:
Beginning Capital amount of $25,000
Withdrawals of $1,500
Net sales of $150,000
Cost of Goods Sold of $80,000
Interest expense of $1,500
Prepaid rent of $6,000
Payroll liabilities of $7,000
Operating expenses of $32,000

Accepted Answer

The answer of Determine the ending Capital amount of a...

Question 18

Income Summary, before closing to Capital, contains a debit balance of $86 and a credit balance of $100. What is the entry to close Income Summary to Capital?

Accepted Answer

A)  Debit Income Summary $100; credit Capital $100 
B)  Debit Income Summary $86; credit Capital $86 
C)  Debit Capital $14; credit Income Summary $14 
D)  Debit Income Summary $14; credit Capital $14 
A)  Debit Income Summary $100; credit Capital $100 
B)  Debit Income Summary $86; credit Capital $86 
C)  Debit Capital $14; credit Income Summary $14 
D)  Debit Income Summary $14; credit Capital $14

Question 19

Which of the following accounts will appear on the post-closing trial balance?

Accepted Answer

A)  Capital 
B)  Cost of Goods Sold 
C)  Sales 
D)  Withdrawals 
A)  Capital 
B)  Cost of Goods Sold 
C)  Sales 
D)  Withdrawals

Question 20

Land is listed first under Plant and Equipment.

Accepted Answer

A) True 
 B)False

Freight-in is

Other Expense is used to record

Accounts payable is a(n)

In what category in a classified balance sheet is Store Equipment found?

Operating expenses that are not related to the selling of goods are administrative expenses.

Other Income is used to

Net income from operations plus other income minus other expenses equals net income.

Which of the following could be recorded as a reversing entry?

To determine how much a company has discounted payments from its customers, it should review the

The capital account in the ledger agrees with the balance sheet

If Net Sales is $7,000, Cost of Goods Sold is $3,000, Gross Profit is $4,000 and Operating Expenses are $1,000, what is the Net Income from Operations?

To determine how much merchandise a company has had returned from its customers, it should review the

In closing entries, the Income Summary account is closed to the Capital account after Withdrawals.

When calculating Gross Profit on the Income Statement, the Net Sales and Cost of Goods Sold values are both required.

The income statement lists regular business expenses under the heading

The entry to adjust salaries was done twice. This error would cause

Determine the ending Capital amount of a business having: Beginning Capital amount of $25,000 Withdrawals of $1,500 Net sales of $150,000 Cost of Goods Sold of $80,000 Interest expense of $1,500 Prepaid rent of $6,000 Payroll liabilities of $7,000 Operating expenses of $32,000

Income Summary, before closing to Capital, contains a debit balance of $86 and a credit balance of $100. What is the entry to close Income Summary to Capital?

Which of the following accounts will appear on the post-closing trial balance?

Land is listed first under Plant and Equipment.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Filters

Exam 13: Completion of the Accounting Cycle for a Merchandising Company

Freight-in is

Other Expense is used to record

Accounts payable is a(n)

In what category in a classified balance sheet is Store Equipment found?

Operating expenses that are not related to the selling of goods are administrative expenses.

Other Income is used to

Net income from operations plus other income minus other expenses equals net income.

Which of the following could be recorded as a reversing entry?

To determine how much a company has discounted payments from its customers, it should review the

The capital account in the ledger agrees with the balance sheet

If Net Sales is $7,000, Cost of Goods Sold is $3,000, Gross Profit is $4,000 and Operating Expenses are $1,000, what is the Net Income from Operations?

To determine how much merchandise a company has had returned from its customers, it should review the

In closing entries, the Income Summary account is closed to the Capital account after Withdrawals.

When calculating Gross Profit on the Income Statement, the Net Sales and Cost of Goods Sold values are both required.

The income statement lists regular business expenses under the heading

The entry to adjust salaries was done twice. This error would cause

Determine the ending Capital amount of a business having: Beginning Capital amount of $25,000 Withdrawals of $1,500 Net sales of $150,000 Cost of Goods Sold of $80,000 Interest expense of $1,500 Prepaid rent of $6,000 Payroll liabilities of $7,000 Operating expenses of $32,000

Income Summary, before closing to Capital, contains a debit balance of $86 and a credit balance of $100. What is the entry to close Income Summary to Capital?

Which of the following accounts will appear on the post-closing trial balance?

Land is listed first under Plant and Equipment.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Filters