Question 1

Interest Expense is

Accepted Answer

A)  a cost of borrowing money. 
B)  included in the "Other Expenses" on the income statement. 
C)  has a normal debit balance. 
D)  All of the above are correct. 
A)  a cost of borrowing money. 
B)  included in the "Other Expenses" on the income statement. 
C)  has a normal debit balance. 
D)  All of the above are correct.

Question 2

Unearned Revenue is a liability account used to record rent fees received in advance.

Accepted Answer

A) True 
 B)False

Question 3

The periodic inventory system updates the record of goods on hand

Accepted Answer

A)  daily. 
B)  weekly. 
C)  as transactions occur. 
D)  at the end of the accounting period. 
A)  daily. 
B)  weekly. 
C)  as transactions occur. 
D)  at the end of the accounting period.

Question 4

Discuss the reasons a company would consider using a periodic inventory system.

Accepted Answer

Companies selling a variety of merchandi

Question 5

The income statement columns on a worksheet have subtotals as follows: debit column, $9,500, and credit column, $9,000. This indicates that

Accepted Answer

A)  the company incurred a net loss of $500. 
B)  the company earned a net income of $500. 
C)  there was an error in the adjustments columns. 
D)  there was an error in the income statement columns. 
A)  the company incurred a net loss of $500. 
B)  the company earned a net income of $500. 
C)  there was an error in the adjustments columns. 
D)  there was an error in the income statement columns.

Question 6

Calculate the missing figures (a-k) in each of the following independent scenarios.

-             Sales       Merchandise Inventory      Physical Inventory Count        Unadjusted Cost of Goods Sold         Inventory Shrinkage      Adjusted Cost of Goods Sold        Gross Profit               64       20      18       26      a)      b)        c)      a) ________
b) ________
c) ________

Accepted Answer

The answer of  
Calculate the missing figures (a-k) in...

Question 7

The entry to adjust for Inventory Shrinkage includes

Accepted Answer

A)  a debit to Inventory. 
B)  a credit to Inventory. 
C)  a credit to Cost of Goods Sold. 
D)  None of these are correct. 
A)  a debit to Inventory. 
B)  a credit to Inventory. 
C)  a credit to Cost of Goods Sold. 
D)  None of these are correct.

Question 8

On the worksheet, Cost of Goods Sold appear in the balance sheet columns.

Accepted Answer

A) True 
 B)False

Question 9

The Balance Sheet columns on the worksheet prepared for the Villeneuve Company had subtotals as follows debit column, $14,000, and credit column, $14,600. This information indicates that

Accepted Answer

A)  the company incurred a net income of $600. 
B)  the company incurred a net loss of $600. 
C)  an error was made when preparing the adjustments in the worksheet. 
D)  a mathematical error was made in the worksheet. 
A)  the company incurred a net income of $600. 
B)  the company incurred a net loss of $600. 
C)  an error was made when preparing the adjustments in the worksheet. 
D)  a mathematical error was made in the worksheet.

Question 10

Unearned Rent results because

Accepted Answer

A)  no fee has been paid, but the service is complete. 
B)  the fee is earned but not collected. 
C)  the fee has been collected before the service has been provided. 
D)  the fee has been paid, and the service is complete. 
A)  no fee has been paid, but the service is complete. 
B)  the fee is earned but not collected. 
C)  the fee has been collected before the service has been provided. 
D)  the fee has been paid, and the service is complete.

Question 11

The normal balance for Unearned Rent is

Accepted Answer

A)  a credit. 
B)  a debit. 
C)  zero. 
D)  dependent on circumstances. 
A)  a credit. 
B)  a debit. 
C)  zero. 
D)  dependent on circumstances.

Question 12

The second two columns of a worksheet are used for

Accepted Answer

A)  the trial balance. 
B)  the income statement. 
C)  the balance sheet. 
D)  adjustments. 
A)  the trial balance. 
B)  the income statement. 
C)  the balance sheet. 
D)  adjustments.

Question 13

The ending inventory figure is shown on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

Mortgage Payable is a liability account.

Accepted Answer

A) True 
 B)False

Question 15

The perpetual inventory system updates the record of goods on hand

Accepted Answer

A)  daily. 
B)  weekly. 
C)  as transactions occur. 
D)  at the end of the accounting period. 
A)  daily. 
B)  weekly. 
C)  as transactions occur. 
D)  at the end of the accounting period.

Question 16

Calculate: (a) net sales, (b) inventory shrinkage, (c) gross profit, and (d) net income from the following:
$$\begin{array} { l r l r } 
\text { Sales } & \$ 3,000 & \text { Cost of Goods Sold (unadjusted) } & \$ 2,000 \
\text { Sales Discount } & 50 & \text { Merchandise Inventory } & 1,400 \
\text { Sales Returns and } & & \text { Physical Inventory Count } & 1,350 \
\text { Allowances } & 80 & \text { Operating Expenses } & 300
\end{array}$$

Accepted Answer

a) $2,870

Question 17

Katelyn Marie's Law Firm's unadjusted trial balance includes the following:
Cash $4,200
Unearned Legal Fees 1,200
Legal Fees Revenue 14,400
Using the above data, record the adjusting entry for $1,000 of the unearned legal fees earned.

Accepted Answer

Unearned Legal Fees

Question 18

Indicate the financial statement(s) on which you would find the following items:
a) Cost of Goods Sold
b) Unearned Rent Revenue
c) Rental Revenue
d) Merchandise Inventory
e) Sales Discount

Accepted Answer

a) Income Statement

Question 19

The adjustment for unearned rent is recorded when

Accepted Answer

A)  cash is received. 
B)  rent is earned. 
C)  revenue is received. 
D)  closing entries are prepared. 
A)  cash is received. 
B)  rent is earned. 
C)  revenue is received. 
D)  closing entries are prepared.

Question 20

During the preparation of the worksheet, the $400 balance of the Dennis, Withdrawal account was extended as a debit to the income statement columns. This error will

Accepted Answer

A)  overstate net income $800. 
B)  understate net income $800. 
C)  overstate net income $400. 
D)  understate net income $400. 
A)  overstate net income $800. 
B)  understate net income $800. 
C)  overstate net income $400. 
D)  understate net income $400.

Interest Expense is

Unearned Revenue is a liability account used to record rent fees received in advance.

The periodic inventory system updates the record of goods on hand

Discuss the reasons a company would consider using a periodic inventory system.

The income statement columns on a worksheet have subtotals as follows: debit column, $9,500, and credit column, $9,000. This indicates that

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Sales Merchandise Inventory Physical Inventory Count Unadjusted Cost of Goods Sold Inventory Shrinkage Adjusted Cost of Goods Sold Gross Profit

64 20 18 26 a) b) c)

a) b) c)

The entry to adjust for Inventory Shrinkage includes

On the worksheet, Cost of Goods Sold appear in the balance sheet columns.

The Balance Sheet columns on the worksheet prepared for the Villeneuve Company had subtotals as follows debit column, $14,000, and credit column, $14,600. This information indicates that

Unearned Rent results because

The normal balance for Unearned Rent is

The second two columns of a worksheet are used for

The ending inventory figure is shown on the balance sheet.

Mortgage Payable is a liability account.

The perpetual inventory system updates the record of goods on hand

Calculate: (a) net sales, (b) inventory shrinkage, (c) gross profit, and (d) net income from the following: Sales \ 3,000 Cost of Goods Sold (unadjusted) \ 2,000 Sales Discount 50 Merchandise Inventory 1,400 Sales Returns and Physical Inventory Count 1,350 Allowances 80 Operating Expenses 300

Katelyn Marie's Law Firm's unadjusted trial balance includes the following: Cash $4,200 Unearned Legal Fees 1,200 Legal Fees Revenue 14,400 Using the above data, record the adjusting entry for $1,000 of the unearned legal fees earned.

Indicate the financial statement(s) on which you would find the following items: a) Cost of Goods Sold b) Unearned Rent Revenue c) Rental Revenue d) Merchandise Inventory e) Sales Discount

The adjustment for unearned rent is recorded when

During the preparation of the worksheet, the $400 balance of the Dennis, Withdrawal account was extended as a debit to the income statement columns. This error will

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

Completion of the Accounting Cycle for a Merchandising Company

Filters

Sales	Merchandise Inventory	Physical Inventory Count	Unadjusted Cost of Goods Sold	Inventory Shrinkage	Adjusted Cost of Goods Sold	Gross Profit
64	20	18	26	a)	b)	c)

Exam 12: Preparing a Worksheet for a Merchandising Company

Interest Expense is

Unearned Revenue is a liability account used to record rent fees received in advance.

The periodic inventory system updates the record of goods on hand

Discuss the reasons a company would consider using a periodic inventory system.

The income statement columns on a worksheet have subtotals as follows: debit column, $9,500, and credit column, $9,000. This indicates that

Calculate the missing figures (a-k) in each of the following independent scenarios. - Sales Merchandise Inventory Physical Inventory Count Unadjusted Cost of Goods Sold Inventory Shrinkage Adjusted Cost of Goods Sold Gross Profit 64 20 18 26 a) b) c) a) ________ b) ________ c) ________

The entry to adjust for Inventory Shrinkage includes

On the worksheet, Cost of Goods Sold appear in the balance sheet columns.

The Balance Sheet columns on the worksheet prepared for the Villeneuve Company had subtotals as follows debit column, $14,000, and credit column, $14,600. This information indicates that

Unearned Rent results because

The normal balance for Unearned Rent is

The second two columns of a worksheet are used for

The ending inventory figure is shown on the balance sheet.

Mortgage Payable is a liability account.

The perpetual inventory system updates the record of goods on hand

Calculate: (a) net sales, (b) inventory shrinkage, (c) gross profit, and (d) net income from the following: Sales \ 3,000 Cost of Goods Sold (unadjusted) \ 2,000 Sales Discount 50 Merchandise Inventory 1,400 Sales Returns and Physical Inventory Count 1,350 Allowances 80 Operating Expenses 300

Katelyn Marie's Law Firm's unadjusted trial balance includes the following: Cash $4,200 Unearned Legal Fees 1,200 Legal Fees Revenue 14,400 Using the above data, record the adjusting entry for $1,000 of the unearned legal fees earned.

Indicate the financial statement(s) on which you would find the following items: a) Cost of Goods Sold b) Unearned Rent Revenue c) Rental Revenue d) Merchandise Inventory e) Sales Discount

The adjustment for unearned rent is recorded when

During the preparation of the worksheet, the $400 balance of the Dennis, Withdrawal account was extended as a debit to the income statement columns. This error will

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

Completion of the Accounting Cycle for a Merchandising Company

Filters

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Sales Merchandise Inventory Physical Inventory Count Unadjusted Cost of Goods Sold Inventory Shrinkage Adjusted Cost of Goods Sold Gross Profit

64 20 18 26 a) b) c)

a) b) c)