Question 1

The adjustment for Unearned Rent Revenue is recorded when:

Accepted Answer

A)  cash is received. 
B)  rent is earned. 
C)  revenue is received. 
D)  payment is made for rent. 
A)  cash is received. 
B)  rent is earned. 
C)  revenue is received. 
D)  payment is made for rent.

Question 2

Calculate: (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income from the following:

Accepted Answer

a) $1,680

Question 3

Calculate the missing figures (a-k) in each of the following independent scenarios.
-

Accepted Answer

i) $32; j)

Question 4

Under the periodic inventory system, an adjustment is not made on the worksheet for inventory.

Accepted Answer

A) True 
 B)False

Question 5

On the worksheet the ending Merchandise Inventory account appears in the:

Accepted Answer

A)  adjusted trial balance and trial balance columns. 
B)  adjustment column. 
C)  adjustment, trial balance, and income statement columns. 
D)  adjustment, adjusted trial balance, and balance sheet columns. 
A)  adjusted trial balance and trial balance columns. 
B)  adjustment column. 
C)  adjustment, trial balance, and income statement columns. 
D)  adjustment, adjusted trial balance, and balance sheet columns.

Question 6

As the Unearned Rent Revenue is earned:

Accepted Answer

A)  the liability account is decreased and the revenue account is increased. 
B)  the asset account is increased and the revenue account is decreased. 
C)  the revenue account is decreased and the revenue account is not affected. 
D)  the liability account is not affected but the revenue account is decreased. 
A)  the liability account is decreased and the revenue account is increased. 
B)  the asset account is increased and the revenue account is decreased. 
C)  the revenue account is decreased and the revenue account is not affected. 
D)  the liability account is not affected but the revenue account is decreased.

Question 7

When the adjustment for depreciation is made:

Accepted Answer

A)  total assets decrease. 
B)  total expenses decrease. 
C)  total liabilities increase. 
D)  total revenue decreases. 
A)  total assets decrease. 
B)  total expenses decrease. 
C)  total liabilities increase. 
D)  total revenue decreases.

Question 8

Sales Discount is used when calculating Gross Profit.

Accepted Answer

A) True 
 B)False

Question 9

The adjusted trial balance represents the combination of the unadjusted trial balance and the adjustments columns.

Accepted Answer

A) True 
 B)False

Question 10

The amount of supplies used causes an increase in Supplies and a decrease in Expense.

Accepted Answer

A) True 
 B)False

Question 11

Under the accrual system, expenses are recorded when incurred.

Accepted Answer

A) True 
 B)False

Question 12

Owner's Withdrawals would be found on the worksheet in the:

Accepted Answer

A)  income statement debit column. 
B)  income statement credit column. 
C)  balance sheet debit column. 
D)  balance sheet credit column. 
A)  income statement debit column. 
B)  income statement credit column. 
C)  balance sheet debit column. 
D)  balance sheet credit column.

Question 13

Cost of Goods Sold (under the Periodic Method) equals:

Accepted Answer

A)  Beginning Inventory + Net Purchases + Freight-in + Freight-out + Ending Inventory. 
B)  Beginning Inventory - Net Purchases - Freight-in + Ending Inventory. 
C)  Beginning Inventory + Net Purchases + Freight-in - Ending Inventory. 
D)  Beginning Inventory - Net Purchases + Freight-in + Ending Inventory. 
A)  Beginning Inventory + Net Purchases + Freight-in + Freight-out + Ending Inventory. 
B)  Beginning Inventory - Net Purchases - Freight-in + Ending Inventory. 
C)  Beginning Inventory + Net Purchases + Freight-in - Ending Inventory. 
D)  Beginning Inventory - Net Purchases + Freight-in + Ending Inventory.

Question 14

The trial balance columns on the worksheet are populated using the:

Accepted Answer

A)  general journal. 
B)  general ledger. 
C)  subsidiary ledger. 
D)  None of the above 
A)  general journal. 
B)  general ledger. 
C)  subsidiary ledger. 
D)  None of the above

Question 15

The adjustment for supplies used would be to:

Accepted Answer

A)  debit Supplies Expense; credit Supplies. 
B)  debit Supplies; credit Cash. 
C)  debit Supplies Expense; credit Inventory. 
D)  debit Inventory; credit Supplies. 
A)  debit Supplies Expense; credit Supplies. 
B)  debit Supplies; credit Cash. 
C)  debit Supplies Expense; credit Inventory. 
D)  debit Inventory; credit Supplies.

Question 16

Calculate the missing figures (a-k) in each of the following independent scenarios.
-

Accepted Answer

a) $10; b)

Question 17

When counting supplies, several boxes were missed. This would cause:

Accepted Answer

A)  Supplies to be overstated. 
B)  Supplies Expense to be overstated. 
C)  net income to be overstated. 
D)  Inventory to be understated. 
A)  Supplies to be overstated. 
B)  Supplies Expense to be overstated. 
C)  net income to be overstated. 
D)  Inventory to be understated.

Question 18

An account never used in an adjusting entry is:

Accepted Answer

A)  Consulting Fees-Revenue. 
B)  Interest Payable. 
C)  Cash. 
D)  Accumulated Depreciation - Equipment. 
A)  Consulting Fees-Revenue. 
B)  Interest Payable. 
C)  Cash. 
D)  Accumulated Depreciation - Equipment.

Question 19

The adjustment for salaries is necessary:

Accepted Answer

A)  because the employer did not have enough cash to write the paychecks. 
B)  to recognize the revenue in the period earned. 
C)  to recognize the expense in the period incurred. 
D)  only in the month of a holiday. 
A)  because the employer did not have enough cash to write the paychecks. 
B)  to recognize the revenue in the period earned. 
C)  to recognize the expense in the period incurred. 
D)  only in the month of a holiday.

Question 20

Gross profit less operating expenses equals:

Accepted Answer

A)  Cost of Goods Sold. 
B)  general administrative expenses. 
C)  net purchases. 
D)  net income. 
A)  Cost of Goods Sold. 
B)  general administrative expenses. 
C)  net purchases. 
D)  net income.

Exam 11: Preparing a Worksheet for a Merchandise Company

The adjustment for Unearned Rent Revenue is recorded when:

Calculate: (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income from the following:

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Under the periodic inventory system, an adjustment is not made on the worksheet for inventory.

On the worksheet the ending Merchandise Inventory account appears in the:

As the Unearned Rent Revenue is earned:

When the adjustment for depreciation is made:

Sales Discount is used when calculating Gross Profit.

The adjusted trial balance represents the combination of the unadjusted trial balance and the adjustments columns.

The amount of supplies used causes an increase in Supplies and a decrease in Expense.

Under the accrual system, expenses are recorded when incurred.

Owner's Withdrawals would be found on the worksheet in the:

Cost of Goods Sold (under the Periodic Method) equals:

The trial balance columns on the worksheet are populated using the:

The adjustment for supplies used would be to:

Calculate the missing figures (a-k) in each of the following independent scenarios. -

When counting supplies, several boxes were missed. This would cause:

An account never used in an adjusting entry is:

The adjustment for salaries is necessary:

Gross profit less operating expenses equals:

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

Completion of the Accounting Cycle 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

Filters