Question 1

Correcting entries are journalized in

Accepted Answer

A)  a special journal. 
B)  the general journal. 
C)  the general ledger. 
D)  a correcting journal. 
A)  a special journal. 
B)  the general journal. 
C)  the general ledger. 
D)  a correcting journal.

Question 2

Lamb Company deposited $15,000 annually for 6 years in an account paying 5% interest compounded annually. What is the balance of the account at the end of the 6th year?

Accepted Answer

in the text
$15,000

Question 3

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

Accepted Answer

A)  Federal income tax 
B)  Federal unemployment tax 
C)  State income tax 
D)  FICA tax 
A)  Federal income tax 
B)  Federal unemployment tax 
C)  State income tax 
D)  FICA tax

Question 4

In concept, estimating Warranty Expense when products are sold with a warranty is similar to estimating Bad Debt Expense based on credit sales.

Accepted Answer

A) True 
 B)False

Question 5

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Accepted Answer

A)  a signature of the accountant doing the posting. 
B)  a date under the double-line total. 
C)  the general ledger account numbers under the double-lined total. 
D)  inspecting the postings in the accounts payable subsidiary ledger. 
A)  a signature of the accountant doing the posting. 
B)  a date under the double-line total. 
C)  the general ledger account numbers under the double-lined total. 
D)  inspecting the postings in the accounts payable subsidiary ledger.

Question 6

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Accepted Answer

A)  Accounts Receivable; accounts receivable subsidiary accounts 
B)  Accounts Receivable subsidiary accounts; Sales Revenue 
C)  Accounts Receivable; Sales Revenue 
D)  Accounts Receivable; Sales Discounts 
A)  Accounts Receivable; accounts receivable subsidiary accounts 
B)  Accounts Receivable subsidiary accounts; Sales Revenue 
C)  Accounts Receivable; Sales Revenue 
D)  Accounts Receivable; Sales Discounts

Question 7

Which of the following is not necessary to know in computing the future value of an annuity?

Accepted Answer

A)  Amount of the periodic payments 
B)  Interest rate 
C)  Number of compounding periods 
D)  Year the payments begin 
A)  Amount of the periodic payments 
B)  Interest rate 
C)  Number of compounding periods 
D)  Year the payments begin

Question 8

The amount you must deposit now in your savings account, paying 6% interest, in order to accumulate $6,000 for a down payment 5 years from now on a new car is

Accepted Answer

A)  $1,200. 
B)  $4,484. 
C)  $4,477. 
D)  $4,200. 
A)  $1,200. 
B)  $4,484. 
C)  $4,477. 
D)  $4,200.

Question 9

Frye Company is considering investing in an annuity contract that will return $50,000 annually at the end of each year for 20 years. What amount should Frye Company pay for this investment if it earns an 8% return?

Accepted Answer

in the text
$50,000

Question 10

Chang Company earns 12% on an investment that will return $400,000 eleven years from now. What is the amount Chang Company should invest now to earn this rate of return?

Accepted Answer

in the text
$400,000

Question 11

(a)What is the present value of $90,000 due 7 years from now, discounted at 9%?
(b) What is the present value of $150,000 due 5 years from now, discounted at 12%?

Accepted Answer

in the text
(a)	$90,000 × .547

Question 12

Postretirement benefits are accounted for on a cash basis.

Accepted Answer

A) True 
 B)False

Question 13

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

Accepted Answer

A) True 
 B)False

Question 14

In a defined-contribution plan, an employer only recognizes pension expense for the amount that the employer is required to contribute under the plan.

Accepted Answer

A) True 
 B)False

Question 15

In computing the present value of an annuity, it is not necessary to know the number of discount periods.

Accepted Answer

A) True 
 B)False

Question 16

The use of special journals often saves time in the _______________ process.

Accepted Answer

The answer of The use of special journals often saves...

Question 17

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Accepted Answer

A) True 
 B)False

Question 18

Journalizing in a sales journal will not

Accepted Answer

A)  require a debit to Accounts Receivable. 
B)  show a sales invoice number. 
C)  affect the reference column of the journal. 
D)  include a credit to the Sales Revenue account. 
A)  require a debit to Accounts Receivable. 
B)  show a sales invoice number. 
C)  affect the reference column of the journal. 
D)  include a credit to the Sales Revenue account.

Question 19

You are purchasing a car for $25,000, and you obtain financing as follows: $2,500 down payment, 12% interest, semiannual payments over 5 years.
Instructions
Compute the payment you will make every 6 months.

Accepted Answer

in the text
$25,000 cost – $2,

Question 20

The process of totaling the columns of a journal is termed

Accepted Answer

A)  ruling. 
B)  columnizing. 
C)  sizing. 
D)  footing. 
A)  ruling. 
B)  columnizing. 
C)  sizing. 
D)  footing.

Correcting entries are journalized in

Lamb Company deposited $15,000 annually for 6 years in an account paying 5% interest compounded annually. What is the balance of the account at the end of the 6th year?

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

In concept, estimating Warranty Expense when products are sold with a warranty is similar to estimating Bad Debt Expense based on credit sales.

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Which of the following is not necessary to know in computing the future value of an annuity?

The amount you must deposit now in your savings account, paying 6% interest, in order to accumulate $6,000 for a down payment 5 years from now on a new car is

Frye Company is considering investing in an annuity contract that will return $50,000 annually at the end of each year for 20 years. What amount should Frye Company pay for this investment if it earns an 8% return?

Chang Company earns 12% on an investment that will return $400,000 eleven years from now. What is the amount Chang Company should invest now to earn this rate of return?

(a)What is the present value of $90,000 due 7 years from now, discounted at 9%? (b) What is the present value of $150,000 due 5 years from now, discounted at 12%?

Postretirement benefits are accounted for on a cash basis.

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

In a defined-contribution plan, an employer only recognizes pension expense for the amount that the employer is required to contribute under the plan.

In computing the present value of an annuity, it is not necessary to know the number of discount periods.

The use of special journals often saves time in the _______________ process.

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Journalizing in a sales journal will not

You are purchasing a car for $25,000, and you obtain financing as follows: $2,500 down payment, 12% interest, semiannual payments over 5 years. Instructions Compute the payment you will make every 6 months.

The process of totaling the columns of a journal is termed

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 15: Accounting Principles and Contingent Liabilities in Business Operations

Correcting entries are journalized in

Lamb Company deposited $15,000 annually for 6 years in an account paying 5% interest compounded annually. What is the balance of the account at the end of the 6th year?

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

In concept, estimating Warranty Expense when products are sold with a warranty is similar to estimating Bad Debt Expense based on credit sales.

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Which of the following is not necessary to know in computing the future value of an annuity?

The amount you must deposit now in your savings account, paying 6% interest, in order to accumulate $6,000 for a down payment 5 years from now on a new car is

Frye Company is considering investing in an annuity contract that will return $50,000 annually at the end of each year for 20 years. What amount should Frye Company pay for this investment if it earns an 8% return?

Chang Company earns 12% on an investment that will return $400,000 eleven years from now. What is the amount Chang Company should invest now to earn this rate of return?

(a)What is the present value of $90,000 due 7 years from now, discounted at 9%? (b) What is the present value of $150,000 due 5 years from now, discounted at 12%?

Postretirement benefits are accounted for on a cash basis.

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

In a defined-contribution plan, an employer only recognizes pension expense for the amount that the employer is required to contribute under the plan.

In computing the present value of an annuity, it is not necessary to know the number of discount periods.

The use of special journals often saves time in the _______________ process.

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Journalizing in a sales journal will not

You are purchasing a car for $25,000, and you obtain financing as follows: $2,500 down payment, 12% interest, semiannual payments over 5 years. Instructions Compute the payment you will make every 6 months.

The process of totaling the columns of a journal is termed

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters