Question 1

Inventory Shrinkage

Accepted Answer

A)  adds to the Cost of Goods Sold. 
B)  reduces the Cost of Goods Sold. 
C)  does not affect Cost of Goods Sold. 
D)  depends on the circumstances. 
A)  adds to the Cost of Goods Sold. 
B)  reduces the Cost of Goods Sold. 
C)  does not affect Cost of Goods Sold. 
D)  depends on the circumstances.

Question 2

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Accepted Answer

A)  Periodic 
B)  Perpetual 
C)  Net Income 
D)  Cost of Goods Sold 
A)  Periodic 
B)  Perpetual 
C)  Net Income 
D)  Cost of Goods Sold

Question 3

Rental Income is what type of account?

Accepted Answer

A)  Asset 
B)  Revenue 
C)  Expense 
D)  Liability 
A)  Asset 
B)  Revenue 
C)  Expense 
D)  Liability

Question 4

Which of the following items generally has a credit balance in the income statement columns of the worksheet?

Accepted Answer

A)  Sales Returns and Allowances 
B)  Inventory 
C)  Accumulated Depreciation 
D)  Sales 
A)  Sales Returns and Allowances 
B)  Inventory 
C)  Accumulated Depreciation 
D)  Sales

Question 5

When using a perpetual inventory method, what account is increased when you buy merchandise inventory?

Accepted Answer

A)  Cost of Goods Sold 
B)  Inventory 
C)  Prepaid Assets 
D)  Merchandise Expense 
A)  Cost of Goods Sold 
B)  Inventory 
C)  Prepaid Assets 
D)  Merchandise Expense

Question 6

The adjustment for depreciation expense was omitted; this would

Accepted Answer

A)  overstate the period's expenses and overstate the period end liabilities. 
B)  overstate the period's expenses and understate the period end liabilities. 
C)  understate the period's expenses and overstate the period's assets. 
D)  understate the period's expenses and understate the period's assets. 
A)  overstate the period's expenses and overstate the period end liabilities. 
B)  overstate the period's expenses and understate the period end liabilities. 
C)  understate the period's expenses and overstate the period's assets. 
D)  understate the period's expenses and understate the period's assets.

Question 7

Gross profit less operating expenses equals

Accepted Answer

A)  Cost of Goods Sold. 
B)  net sales. 
C)  net revenue. 
D)  net income. 
A)  Cost of Goods Sold. 
B)  net sales. 
C)  net revenue. 
D)  net income.

Question 8

Prepare the general journal entry to record the adjustment for inventory:
Merchandise Inventory account balance $5,000
Physical Count of inventory 4,995

Accepted Answer

Cost of Go

Inventory Shrinkage

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Rental Income is what type of account?

Which of the following items generally has a credit balance in the income statement columns of the worksheet?

When using a perpetual inventory method, what account is increased when you buy merchandise inventory?

The adjustment for depreciation expense was omitted; this would

Gross profit less operating expenses equals

Prepare the general journal entry to record the adjustment for inventory: Merchandise Inventory account balance $5,000 Physical Count of inventory 4,995

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

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Exam 12: Preparing a Worksheet for a Merchandising Company

Inventory Shrinkage

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Rental Income is what type of account?

Which of the following items generally has a credit balance in the income statement columns of the worksheet?

When using a perpetual inventory method, what account is increased when you buy merchandise inventory?

The adjustment for depreciation expense was omitted; this would

Gross profit less operating expenses equals

Prepare the general journal entry to record the adjustment for inventory: Merchandise Inventory account balance $5,000 Physical Count of inventory 4,995

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