Question 1

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

The answer of Calculate the missing figures (a-k) in each...

Question 2

Beginning Merchandise Inventory 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 3

The Income Summary account is used to adjust beginning and ending inventories.

Accepted Answer

A) True 
 B)False

Question 4

Mortgage Payable is what type of account?

Accepted Answer

A)  Asset 
B)  Liability 
C)  Revenue 
D)  Contra-Asset 
A)  Asset 
B)  Liability 
C)  Revenue 
D)  Contra-Asset

Question 5

Rental Income is what type of account?

Accepted Answer

A)  Asset 
B)  Revenue 
C)  Expense 
D)  Contra-Sales 
A)  Asset 
B)  Revenue 
C)  Expense 
D)  Contra-Sales

Question 6

The income summary amounts in the income statement columns of the worksheet represent:

Accepted Answer

A)  income for the period. 
B)  adjustment for unearned revenue. 
C)  closing of the Capital account. 
D)  beginning and ending inventory. 
A)  income for the period. 
B)  adjustment for unearned revenue. 
C)  closing of the Capital account. 
D)  beginning and ending inventory.

Question 7

The beginning inventory is assumed to be sold; therefore, it is added to cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 8

Net Income equals:

Accepted Answer

A)  Net Sales - Cost of Goods Sold - Operating Expenses. 
B)  Gross Profit - Operating Expenses. 
C)  Sales - Sales Returns & Allowances - Sales Discounts - Cost of Goods Sold - Operating Expenses. 
D)  All of the above are correct. 
A)  Net Sales - Cost of Goods Sold - Operating Expenses. 
B)  Gross Profit - Operating Expenses. 
C)  Sales - Sales Returns & Allowances - Sales Discounts - Cost of Goods Sold - Operating Expenses. 
D)  All of the above are correct.

Question 9

The goods a company has available to sell to customers are called:

Accepted Answer

A)  Supplies. 
B)  Freight-in. 
C)  Cost of Goods Sold. 
D)  Merchandise Inventory. 
A)  Supplies. 
B)  Freight-in. 
C)  Cost of Goods Sold. 
D)  Merchandise Inventory.

Question 10

The adjustment for depreciation expense was omitted; this would:

Accepted Answer

A)  overstate the period's expenses and overstate the period end liabilities. 
B)  overstate the period's expenses and understate the period end liabilities. 
C)  understate the period's expenses and overstate the period's assets. 
D)  understate the period's expenses and understate the period's assets. 
A)  overstate the period's expenses and overstate the period end liabilities. 
B)  overstate the period's expenses and understate the period end liabilities. 
C)  understate the period's expenses and overstate the period's assets. 
D)  understate the period's expenses and understate the period's assets.

Question 11

Unearned Rent is what type of account?

Accepted Answer

A)  Asset 
B)  Revenue 
C)  Liability 
D)  Contra-Asset 
A)  Asset 
B)  Revenue 
C)  Liability 
D)  Contra-Asset

Question 12

The amount for beginning inventory is used when calculating Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 13

Interest Expense:

Accepted Answer

A)  is a cost of borrowing money. 
B)  is included in the "Other Expenses" on the Income Statement. 
C)  has a normal debit balance. 
D)  All of the above are correct. 
A)  is a cost of borrowing money. 
B)  is included in the "Other Expenses" on the Income Statement. 
C)  has a normal debit balance. 
D)  All of the above are correct.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

If ending inventory is overstated this period, beginning inventory will be understated in the next period.

Accepted Answer

A) True 
 B)False

Question 16

The balance sheet columns on the worksheet prepared for Cleveland Goods had subtotals as follows: debit column, $13,000, and credit column, $10,600. This information indicates that:

Accepted Answer

A)  the company incurred a net income of $2,400. 
B)  the company incurred a net loss of $2,400. 
C)  an error was made when preparing the adjustments in the worksheet. 
D)  the unadjusted trial balance has an error. 
A)  the company incurred a net income of $2,400. 
B)  the company incurred a net loss of $2,400. 
C)  an error was made when preparing the adjustments in the worksheet. 
D)  the unadjusted trial balance has an error.

Question 17

The physical count of inventory was incorrect, which overstated the ending inventory. This would cause:

Accepted Answer

A)  Cost of Goods Sold to be overstated. 
B)  Cost of Goods Sold to be understated. 
C)  gross profit to be understated. 
D)  operating expenses to be understated. 
A)  Cost of Goods Sold to be overstated. 
B)  Cost of Goods Sold to be understated. 
C)  gross profit to be understated. 
D)  operating expenses to be understated.

Question 18

If $6,700 was the beginning inventory, purchases were $12,000 and sales were $6,000. How much was ending inventory last accounting period?

Accepted Answer

A)  $12,700 
B)  $6,700 
C)  $0 
D)  $6,000 
A)  $12,700 
B)  $6,700 
C)  $0 
D)  $6,000

Question 19

As Unearned Rent Revenue is earned, it becomes:

Accepted Answer

A)  an asset. 
B)  a revenue. 
C)  a liability. 
D)  an expense. 
A)  an asset. 
B)  a revenue. 
C)  a liability. 
D)  an expense.

Question 20

When using a periodic inventory method, what account is increased when you buy merchandise inventory?

Accepted Answer

A)  Cost of Goods Sold 
B)  Inventory 
C)  Supplies 
D)  Purchases 
A)  Cost of Goods Sold 
B)  Inventory 
C)  Supplies 
D)  Purchases

Exam 11: Preparing a Worksheet for a Merchandise Company

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

Beginning Merchandise Inventory would be found on the worksheet in the:

The Income Summary account is used to adjust beginning and ending inventories.

Mortgage Payable is what type of account?

Rental Income is what type of account?

The income summary amounts in the income statement columns of the worksheet represent:

The beginning inventory is assumed to be sold; therefore, it is added to cost of goods sold.

Net Income equals:

The goods a company has available to sell to customers are called:

The adjustment for depreciation expense was omitted; this would:

Unearned Rent is what type of account?

The amount for beginning inventory is used when calculating Cost of Goods Sold.

Interest Expense:

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

If ending inventory is overstated this period, beginning inventory will be understated in the next period.

The balance sheet columns on the worksheet prepared for Cleveland Goods had subtotals as follows: debit column, $13,000, and credit column, $10,600. This information indicates that:

The physical count of inventory was incorrect, which overstated the ending inventory. This would cause:

If $6,700 was the beginning inventory, purchases were $12,000 and sales were $6,000. How much was ending inventory last accounting period?

As Unearned Rent Revenue is earned, it becomes:

When using a periodic inventory method, what account is increased when you buy merchandise inventory?

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

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