Question 1

The merchandise inventory account is never debited or credited during the year using the periodic method.

Accepted Answer

A) True 
 B)False

Question 2

At the end of the accounting period, the merchandise inventory account is debited for the beginning inventory amount.

Accepted Answer

A) True 
 B)False

Question 3

Two adjustments are made to the merchandise inventory account on the work sheet.

Accepted Answer

A) True 
 B)False

Question 4

The balance of Unearned Revenue is reported on the income statement at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 5

In journalizing adjusting entries, an Unearned Revenue account is debited for any portion earned during the accounting period.

Accepted Answer

A) True 
 B)False

Question 6

If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?

Accepted Answer

A)  Inventory Short and Over 
B)  Purchases 
C)  Accounts Payable 
D)  Accounts Receivable 
A)  Inventory Short and Over 
B)  Purchases 
C)  Accounts Payable 
D)  Accounts Receivable

Question 7

Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called

Accepted Answer

A)  the cost of goods sold. 
B)  the physical inventory. 
C)  freight-in. 
D)  accumulated depreciation. 
A)  the cost of goods sold. 
B)  the physical inventory. 
C)  freight-in. 
D)  accumulated depreciation.

Question 8

On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents

Accepted Answer

A)  an error in the accounting procedures for the period. 
B)  a net loss. 
C)  a net income. 
D)  no gain or loss. 
A)  an error in the accounting procedures for the period. 
B)  a net loss. 
C)  a net income. 
D)  no gain or loss.

Question 9

Which of the following is NOT a formal part of the accounting system?

Accepted Answer

A)  balance sheet 
B)  income statement 
C)  statement of owner's equity 
D)  the work sheet 
A)  balance sheet 
B)  income statement 
C)  statement of owner's equity 
D)  the work sheet

Question 10

If beginning inventory is $30,000 and ending inventory is $25,000, the cost of the inventory on hand at the end of the accounting period is $25,000.

Accepted Answer

A) True 
 B)False

Question 11

The amount of inventory on hand is determined by physically counting the goods on hand and determining the cost of those goods.

Accepted Answer

A) True 
 B)False

Question 12

Purchases Discounts is a contra-cost account.

Accepted Answer

A) True 
 B)False

Question 13

Unearned revenue is reported as a(n)

Accepted Answer

A)  current liability on the balance sheet. 
B)  contra-asset account on the chart of accounts. 
C)  owner's equity account on the work sheet. 
D)  asset on the balance sheet. 
A)  current liability on the balance sheet. 
B)  contra-asset account on the chart of accounts. 
C)  owner's equity account on the work sheet. 
D)  asset on the balance sheet.

Question 14

Purchases Returns and Allowances is a contra-revenue account.

Accepted Answer

A) True 
 B)False

Question 15

Only the debit adjustment amount in the merchandise inventory account is extended to the Adjusted Trial Balance columns of the work sheet.

Accepted Answer

A) True 
 B)False

Question 16

When part of the amount of unearned revenue has been earned and the account adjusted accordingly, a revenue account must be adjusted by that partial amount.

Accepted Answer

A) True 
 B)False

Question 17

Cash received prior to delivering a product or performing a service is called a(n)

Accepted Answer

A)  unearned asset. 
B)  unearned revenue. 
C)  unearned expense. 
D)  unearned contra-asset. 
A)  unearned asset. 
B)  unearned revenue. 
C)  unearned expense. 
D)  unearned contra-asset.

Question 18

Adjustments are made on the work sheet for both beginning and ending Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 19

The income summary account, after adjusting entries are posted, reflects the

Accepted Answer

A)  beginning inventory amount. 
B)  ending inventory amount. 
C)  beginning and ending inventory amounts. 
D)  cash income from business transactions. 
A)  beginning inventory amount. 
B)  ending inventory amount. 
C)  beginning and ending inventory amounts. 
D)  cash income from business transactions.

Question 20

Only the debit amount for the income summary account must be extended in the work sheet.

Accepted Answer

A) True 
 B)False

The merchandise inventory account is never debited or credited during the year using the periodic method.

At the end of the accounting period, the merchandise inventory account is debited for the beginning inventory amount.

Two adjustments are made to the merchandise inventory account on the work sheet.

The balance of Unearned Revenue is reported on the income statement at the end of the accounting period.

In journalizing adjusting entries, an Unearned Revenue account is debited for any portion earned during the accounting period.

If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?

Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called

On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents

Which of the following is NOT a formal part of the accounting system?

If beginning inventory is $30,000 and ending inventory is $25,000, the cost of the inventory on hand at the end of the accounting period is $25,000.

The amount of inventory on hand is determined by physically counting the goods on hand and determining the cost of those goods.

Purchases Discounts is a contra-cost account.

Unearned revenue is reported as a(n)

Purchases Returns and Allowances is a contra-revenue account.

Only the debit adjustment amount in the merchandise inventory account is extended to the Adjusted Trial Balance columns of the work sheet.

When part of the amount of unearned revenue has been earned and the account adjusted accordingly, a revenue account must be adjusted by that partial amount.

Cash received prior to delivering a product or performing a service is called a(n)

Adjustments are made on the work sheet for both beginning and ending Merchandise Inventory.

The income summary account, after adjusting entries are posted, reflects the

Only the debit amount for the income summary account must be extended in the work sheet.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters

Exam 14: Adjustments and the Work Sheet for a Merchandising Business

The merchandise inventory account is never debited or credited during the year using the periodic method.

At the end of the accounting period, the merchandise inventory account is debited for the beginning inventory amount.

Two adjustments are made to the merchandise inventory account on the work sheet.

The balance of Unearned Revenue is reported on the income statement at the end of the accounting period.

In journalizing adjusting entries, an Unearned Revenue account is debited for any portion earned during the accounting period.

If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?

Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called

On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents

Which of the following is NOT a formal part of the accounting system?

If beginning inventory is $30,000 and ending inventory is $25,000, the cost of the inventory on hand at the end of the accounting period is $25,000.

The amount of inventory on hand is determined by physically counting the goods on hand and determining the cost of those goods.

Purchases Discounts is a contra-cost account.

Unearned revenue is reported as a(n)

Purchases Returns and Allowances is a contra-revenue account.

Only the debit adjustment amount in the merchandise inventory account is extended to the Adjusted Trial Balance columns of the work sheet.

When part of the amount of unearned revenue has been earned and the account adjusted accordingly, a revenue account must be adjusted by that partial amount.

Cash received prior to delivering a product or performing a service is called a(n)

Adjustments are made on the work sheet for both beginning and ending Merchandise Inventory.

The income summary account, after adjusting entries are posted, reflects the

Only the debit amount for the income summary account must be extended in the work sheet.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters