Question 1

A merchandise company's interest expense is a(n)

Accepted Answer

A)  selling expense. 
B)  administrative expense. 
C)  contra-revenue. 
D)  other expense. 
A)  selling expense. 
B)  administrative expense. 
C)  contra-revenue. 
D)  other expense.

Question 2

Determine the ending Capital balance of a business having:
Beginning Capital of $40,000
No investments or withdrawals
Inventory of $10,000
Cost of Goods Sold of $90,000
Prepaid Insurance of $12,000
Operating expenses of $72,000
Net sales $180,000

Accepted Answer

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

Question 3

Which of the following steps of the accounting cycle comes last?

Accepted Answer

A)  Journalize and post adjusting entries 
B)  Journalize and post closing entries 
C)  Prepare financial statements 
D)  Post closing trial balance 
A)  Journalize and post adjusting entries 
B)  Journalize and post closing entries 
C)  Prepare financial statements 
D)  Post closing trial balance

Question 4

Reversing entries help reduce potential errors and simplify the record-keeping process.

Accepted Answer

A) True 
 B)False

Question 5

Plant and Equipment is usually listed

Accepted Answer

A)  in alphabetical order. 
B)  in order of liquidity. 
C)  by how long they will last. 
D)  None of these are correct. 
A)  in alphabetical order. 
B)  in order of liquidity. 
C)  by how long they will last. 
D)  None of these are correct.

Question 6

Adjusting journal entries still need to be made after the worksheet; otherwise the account balances will not be correct.

Accepted Answer

A) True 
 B)False

Question 7

The following accounts are on the Balance Sheet section of Appleton Company worksheet for the month ended July 31, 2019. Required: Prepare a classified $$\begin{array}{l}
\text { BALANCE SHEET }\
\begin{array} { l r r } 
\text { ACCOUNT } & \text { Debit } & \text { Credit } \
\hline \text { Cash } & 3 & \
\text { Accounts Receivable } & 5 & \
\text { Merchandise Inventory } & 7 & \
\text { Store Equipment } & 15 & \
\text { Accum. Dep., Store Equip. } & & 3 \
\text { Accounts Payable } & & 7 \
\text { Mortgage Payable } & & 12 \
\text { Appleton, Capital } & & 4 \
\hline
\end{array}
\end{array}$$ Additional information Withdrawals for the period are $2, and Net Income is $6.

Accepted Answer

The answer of The following accounts are on the Balance...

Question 8

Not all adjusting entries are reversed.

Accepted Answer

A) True 
 B)False

Question 9

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

The adjusting entry to record rental income that is earned would be a debit to Rental Income and a credit to Unearned Rent.

Accepted Answer

A) True 
 B)False

Question 11

Adjusting entries from the worksheet

Accepted Answer

A)  are journalized and posted to the ledger. 
B)  are posted directly to the ledger. 
C)  are closed to the Income Summary account. 
D)  affect only balance sheet accounts. 
A)  are journalized and posted to the ledger. 
B)  are posted directly to the ledger. 
C)  are closed to the Income Summary account. 
D)  affect only balance sheet accounts.

Question 12

Merchandise Inventory would be classified as a current asset.

Accepted Answer

A) True 
 B)False

Question 13

In which section does Interest Revenue appear in the Income Statement?

Accepted Answer

A)  Other Income 
B)  Other Expense 
C)  Selling Expenses 
D)  Administrative Expenses 
A)  Other Income 
B)  Other Expense 
C)  Selling Expenses 
D)  Administrative Expenses

Question 14

The goal of closing entries is

Accepted Answer

A)  to clear revenue and expense accounts. 
B)  to update the Capital account balance. 
C)  to clear the Withdrawal account. 
D)  All of these answers are correct. 
A)  to clear revenue and expense accounts. 
B)  to update the Capital account balance. 
C)  to clear the Withdrawal account. 
D)  All of these answers are correct.

Question 15

The left and right columns on the financial statements are used for debits and credits.

Accepted Answer

A) True 
 B)False

Question 16

When closing sales, which of the following accounts will also be closed?

Accepted Answer

A)  Sales Returns and Allowances 
B)  Rental Income 
C)  Sales Discounts 
D)  Owner's Capital 
A)  Sales Returns and Allowances 
B)  Rental Income 
C)  Sales Discounts 
D)  Owner's Capital

Question 17

Reversing entries are the opposite of adjusting entries.

Accepted Answer

A) True 
 B)False

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

All adjusting entries can be reversed.

Accepted Answer

A) True 
 B)False

Question 20

The formal income statement can be prepared from the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

A merchandise company's interest expense is a(n)

Determine the ending Capital balance of a business having: Beginning Capital of $40,000 No investments or withdrawals Inventory of $10,000 Cost of Goods Sold of $90,000 Prepaid Insurance of $12,000 Operating expenses of $72,000 Net sales $180,000

Which of the following steps of the accounting cycle comes last?

Reversing entries help reduce potential errors and simplify the record-keeping process.

Plant and Equipment is usually listed

Adjusting journal entries still need to be made after the worksheet; otherwise the account balances will not be correct.

Not all adjusting entries are reversed.

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

The adjusting entry to record rental income that is earned would be a debit to Rental Income and a credit to Unearned Rent.

Adjusting entries from the worksheet

Merchandise Inventory would be classified as a current asset.

In which section does Interest Revenue appear in the Income Statement?

The goal of closing entries is

The left and right columns on the financial statements are used for debits and credits.

When closing sales, which of the following accounts will also be closed?

Reversing entries are the opposite of adjusting entries.

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

All adjusting entries can be reversed.

The formal income statement can be prepared from the income statement columns of the worksheet.

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

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

A merchandise company's interest expense is a(n)

Determine the ending Capital balance of a business having: Beginning Capital of $40,000 No investments or withdrawals Inventory of $10,000 Cost of Goods Sold of $90,000 Prepaid Insurance of $12,000 Operating expenses of $72,000 Net sales $180,000

Which of the following steps of the accounting cycle comes last?

Reversing entries help reduce potential errors and simplify the record-keeping process.

Plant and Equipment is usually listed

Adjusting journal entries still need to be made after the worksheet; otherwise the account balances will not be correct.

Not all adjusting entries are reversed.

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

The adjusting entry to record rental income that is earned would be a debit to Rental Income and a credit to Unearned Rent.

Adjusting entries from the worksheet

Merchandise Inventory would be classified as a current asset.

In which section does Interest Revenue appear in the Income Statement?

The goal of closing entries is

The left and right columns on the financial statements are used for debits and credits.

When closing sales, which of the following accounts will also be closed?

Reversing entries are the opposite of adjusting entries.

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

All adjusting entries can be reversed.

The formal income statement can be prepared from the income statement columns of the worksheet.

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

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