Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Accepted Answer

A) True 
 B)False  True

Question 3

If beginning inventory is $6,000,ending inventory is $3,000,net purchases are $12,000 and Freight-in is $400,what is the Cost of Goods Sold?

Accepted Answer

A) $17,400 
B) $17,000 
C) $15,400 
D) $14,000 
A) $17,400 
B) $17,000 
C) $15,400 
D) $14,000 C

Question 4

The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is:

Accepted Answer

A) beginning inventory. 
B) ending inventory. 
C) total purchases. 
D) Cost of Goods Sold. 
A) beginning inventory. 
B) ending inventory. 
C) total purchases. 
D) Cost of Goods Sold.

Question 5

Beginning inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 6

Gross Profit equals:

Accepted Answer

A) Net sales - Net Purchases. 
B) Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold. 
C) Cost of Goods Sold - Other Expenses. 
D) Cost of Goods Sold - Operating Expenses. 
A) Net sales - Net Purchases. 
B) Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold. 
C) Cost of Goods Sold - Other Expenses. 
D) Cost of Goods Sold - Operating Expenses.

Question 7

The following amounts are on the Bear Sporting Goods worksheet for the month ended October 31.Required: Calculate the following:
a)Net sales
b)Net purchases
c)Net cost of purchases
d)Cost of goods available for sale
e)Cost of goods sold
f)Gross profit

Accepted Answer

a)$52,b)$2

Question 8

The information to prepare the Statement of Owner's Equity comes from the:

Accepted Answer

A) income statement columns on the worksheet. 
B) adjustments columns on the worksheet. 
C) balance sheet columns on the worksheet. 
D) general ledger. 
A) income statement columns on the worksheet. 
B) adjustments columns on the worksheet. 
C) balance sheet columns on the worksheet. 
D) general ledger.

Question 9

Identify the category(s)of each of the accounts below.
Current Asset
Plant and Equipment
Current Liabilities
Long-Term Liabilities

Accepted Answer

The answer of Identify the category(s)of each of the accounts...

Question 10

Determine the ending Capital balance of a business having:
Beginning Capital of $50,000
No investments or withdrawals
Beginning inventory of $10,000
Net Purchases of $90,000
Ending inventory of $12,000
Operating expenses of $72,000
Net sales $190,000
$ ________

Accepted Answer

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

Question 11

The ending merchandise inventory was understated.This error would cause:

Accepted Answer

A) assets to be understated. 
B) assets to be overstated. 
C) net income to be overstated. 
D) None of these is correct. 
A) assets to be understated. 
B) assets to be overstated. 
C) net income to be overstated. 
D) None of these is correct.

Question 12

The calculation of Net Purchases does NOT include:

Accepted Answer

A) Purchases Returns and Allowances. 
B) Purchases Discounts. 
C) Purchases. 
D) Merchandise Inventory. 
A) Purchases Returns and Allowances. 
B) Purchases Discounts. 
C) Purchases. 
D) Merchandise Inventory.

Question 13

The entry to close the Income Summary to Capital was omitted,there was a net income.This error would cause:

Accepted Answer

A) the Capital account to be understated. 
B) net income to be overstated. 
C) Revenue to be understated. 
D) the Capital account to be overstated. 
A) the Capital account to be understated. 
B) net income to be overstated. 
C) Revenue to be understated. 
D) the Capital account to be overstated.

Question 14

How is Income Summary closed if the company had a net loss?

Accepted Answer

A) Credit Income Summary;debit Capital 
B) Debit Income Summary;credit Capital 
C) Debit Capital;credit Revenue 
D) Debit Withdrawals;credit Capital 
A) Credit Income Summary;debit Capital 
B) Debit Income Summary;credit Capital 
C) Debit Capital;credit Revenue 
D) Debit Withdrawals;credit Capital

Question 15

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) Cash 
A) Salary Expense 
B) Withdrawals 
C) Depreciation Expense,Buildings 
D) Cash

Question 16

Administrative Expenses include:

Accepted Answer

A) Sales - Salaries Expense. 
B) Delivery Expense. 
C) Advertising Expense. 
D) None of the above is correct. 
A) Sales - Salaries Expense. 
B) Delivery Expense. 
C) Advertising Expense. 
D) None of the above is correct.

Question 17

Net Sales are:

Accepted Answer

A) Gross Sales + Sales Discounts + Sales Returns and Allowances. 
B) Gross Sales - Sales Discounts - Sales Returns and Allowances. 
C) Revenue - Sales Discounts + Sales Returns and Allowances. 
D) Gross Sales + Sales Discounts - Sales Returns and Allowances. 
A) Gross Sales + Sales Discounts + Sales Returns and Allowances. 
B) Gross Sales - Sales Discounts - Sales Returns and Allowances. 
C) Revenue - Sales Discounts + Sales Returns and Allowances. 
D) Gross Sales + Sales Discounts - Sales Returns and Allowances.

Question 18

To determine how much merchandise was returned from a company's customers,the company should review the:

Accepted Answer

A) Purchases Returns and Allowances Account. 
B) Merchandise Inventory Account. 
C) Sales Returns and Allowances Account. 
D) Freight-In. 
A) Purchases Returns and Allowances Account. 
B) Merchandise Inventory Account. 
C) Sales Returns and Allowances Account. 
D) Freight-In.

Question 19

The entry to close the owner's Withdrawals account will include which of the following?

Accepted Answer

A) A debit to Income Summary 
B) A credit to Capital 
C) A credit to Withdrawals 
D) A debit to Withdrawals 
A) A debit to Income Summary 
B) A credit to Capital 
C) A credit to Withdrawals 
D) A debit to Withdrawals

Question 20

The goal of closing entries does NOT include:

Accepted Answer

A) to clear revenue and expense accounts. 
B) to update the Capital account balance. 
C) to clear the Withdrawals account. 
D) to adjust assets and liability accounts to their beginning balances. 
A) to clear revenue and expense accounts. 
B) to update the Capital account balance. 
C) to clear the Withdrawals account. 
D) to adjust assets and liability accounts to their beginning balances.

Exam 12: Completion of the Accounting Cycle for a Merchandise Company

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

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

If beginning inventory is $6,000,ending inventory is $3,000,net purchases are $12,000 and Freight-in is $400,what is the Cost of Goods Sold?

The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is:

Beginning inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

Gross Profit equals:

The following amounts are on the Bear Sporting Goods worksheet for the month ended October 31.Required: Calculate the following: a)Net sales b)Net purchases c)Net cost of purchases d)Cost of goods available for sale e)Cost of goods sold f)Gross profit

The information to prepare the Statement of Owner's Equity comes from the:

Identify the category(s)of each of the accounts below. Current Asset Plant and Equipment Current Liabilities Long-Term Liabilities

Determine the ending Capital balance of a business having: Beginning Capital of $50,000 No investments or withdrawals Beginning inventory of $10,000 Net Purchases of $90,000 Ending inventory of $12,000 Operating expenses of $72,000 Net sales $190,000 $ ________

The ending merchandise inventory was understated.This error would cause:

The calculation of Net Purchases does NOT include:

The entry to close the Income Summary to Capital was omitted,there was a net income.This error would cause:

How is Income Summary closed if the company had a net loss?

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

Administrative Expenses include:

Net Sales are:

To determine how much merchandise was returned from a company's customers,the company should review the:

The entry to close the owner's Withdrawals account will include which of the following?

The goal of closing entries does NOT include:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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