Exam 3: The Accounting Cycle

Cosmos Computer Consulting (CCC) is preparing its year-end financial statements.They completed two projects in the last month: one worth $12,000 that has been invoiced to the customer but has not yet been paid, and one worth $18,000 that has not yet been invoiced to the customer.In the case of the second contract CCC received a $3,000 deposit at the beginning of the contract.With respect to these two contracts what amount would be recorded as accounts receivable for Cosmos at year-end?

Which accounting record is a listing of all the accounts and their balances?

Geneva Inc, had opened for business on September 1st but did not pay rent until September 15th, when they paid $6,000 in rent for the three months of September, October and November.How would the event be recorded on the September 30?

Recording a transaction in two places in the accounts is an example of which principle?

Which of the following would be used to record the sale of goods on credit for the period?

A company purchased and received $2,500 worth of goods on credit to be sold in their stores.How would the event be recorded?

At the end of the accounting period, closing entries are used to reset the balance of the temporary accounts to zero.Into what account are the balances of the temporary accounts transferred?

Cosmos Computer Consulting is preparing their year-end financial statements.They completed two projects in the last month: one worth $12,000 that they have billed the customer for but not yet been paid, and one worth $18,000 that they have not yet had a chance to bill the customer for.In the case of the second contract they had received a $3,000 deposit at the beginning of the contract.With respect to these two contracts what amount would be recorded as Revenue for Cosmos at year-end?

On May 15th Bain Bathtubs signed a lease to rent a storefront starting on June 1st for the next two years at $1,000 per month.They paid the first two months' rent in advance on signing the lease.On May 15th how would the transaction be recorded?

On which of the following businesses' balance sheets would you most likely expect to see an unearned revenue account?

Which action describes "posting"?

Which of the following is an example of a deferred expense adjusting entry?

Which of the following is an advantage of accrual accounting?

Pear Inc declared and paid a $10,000 dividend at the end of the year.How would the transaction be recorded?

Which of the following correctly describes the order of the accounting cycle?

Which of the following account balances increases with credits?

Identify three different points in time that revenue could be recognized relative to when the payment is received.Give an example of each.

From the following data what is the cost of sales? Beginning inventory $12,000, purchases $128,000, ending inventory $14,000.

Which of the following is a temporary account?

A company made the following entry in their books: Dr.Cash $25,000, Cr.Accounts receivable $25,000.What is the event that most likely occurred?