Question 1

The journal entry to remove a specific customer's account,once it is identified as uncollectible,would include a:

Accepted Answer

A) credit to allowance for doubtful accounts 
B) debit to uncollectible accounts expense 
C) credit to accounts receivable 
D) debit to sales revenue 
A) credit to allowance for doubtful accounts 
B) debit to uncollectible accounts expense 
C) credit to accounts receivable 
D) debit to sales revenue

Question 2

The inventory method that results in the highest net income during periods of declining prices is

Accepted Answer

A) LIFO 
B) FIFO 
C) Average 
D) Specific identification 
A) LIFO 
B) FIFO 
C) Average 
D) Specific identification

Question 3

Anthony Company sold merchandise on account to a customer at a price of $5,000.The merchandise cost Anthony $4,200.The terms of the sale were 3/10,n/30.If the customer paid within the discount period,by how much did this transaction increase Anthony's net income?

Accepted Answer

A) $5,000 
B) $ 800 
C) $ 650 
D) $ 300 
A) $5,000 
B) $ 800 
C) $ 650 
D) $ 300

Question 4

The journal entry to record a customer's payment within the discount period would include all but one of the following.

Accepted Answer

A) Debit to cash 
B) Debit to sales discount 
C) Credit to sales 
D) Credit to accounts receivable 
A) Debit to cash 
B) Debit to sales discount 
C) Credit to sales 
D) Credit to accounts receivable

Question 5

In times of declining prices,______ generally result(s)in the ______ net income.

Accepted Answer

A) LIFO,lower 
B) FIFO,higher 
C) LIFO,higher 
D) LIFO and FIFO,same 
A) LIFO,lower 
B) FIFO,higher 
C) LIFO,higher 
D) LIFO and FIFO,same

Question 6

The account which is reported at its net realizable value is:

Accepted Answer

A) sales returns and allowances 
B) accounts receivable 
C) notes payable 
D) equipment 
A) sales returns and allowances 
B) accounts receivable 
C) notes payable 
D) equipment

Question 7

Coast Starlight Company reported cash received from customers of $1,358,500 for the year ended June 30,2010.Comparative balance sheets for June 30,2009 and 2010,reported net accounts receivable balances of $85,600 and $79,300,respectively.Net sales reported on the income statement for the year ended June 30,2010 were:

Accepted Answer

A) $1,279,200 
B) $1,352,200 
C) $1,364,800 
D) $1,437,800 
A) $1,279,200 
B) $1,352,200 
C) $1,364,800 
D) $1,437,800

Question 8

Under which method are the most recent costs included in cost of goods sold

Accepted Answer

A) LIFO 
B) FIFO 
C) Average 
D) Specific identification 
A) LIFO 
B) FIFO 
C) Average 
D) Specific identification

Question 9

KPMD is a CPA firm that provides audits,tax work and management advisory services to the Yellowstone region of Wyoming.On December 31,2009 the end of KPMD's fiscal year it had Accounts Receivable of $70,000 and a debit balance in its Allowance for Doubtful Accounts of $1,000.On December 31 KPMD estimated that $4,000 of the accounts receivable would be uncollectible.Then on February 5,2010 they wrote off Shirley Logston's receivable for $500.
Required:
1.Make the entry to record the year end adjustment of Accounts Receivable
2.Show how Accounts Receivable would be presented on the 12/31/09 Balance Sheet
3.Make the entry to write of Shirley Logston's Accounts Receivable on Feb 5,2010.
 4.How much will the assets of KPMD be reduced when Shirely's Accounts Receivable
is written off?

Accepted Answer

The answer of KPMD is a CPA firm that provides...

Question 10

If a firm uses LIFO for income tax purposes,what method must be used for financial accounting purposes?

Accepted Answer

A) Any method may be used 
B) Either FIFO or LIFO 
C) FIFO 
D) LIFO 
A) Any method may be used 
B) Either FIFO or LIFO 
C) FIFO 
D) LIFO

Question 11

Use the following to answer questions 
Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June:
  
-The cost of goods sold for the June 30th sale is:

Accepted Answer

A) $1,320 
B) $1,440 
C) $1,460 
D) $1,680 
A) $1,320 
B) $1,440 
C) $1,460 
D) $1,680

Question 12

The beginning balance in the allowance for uncollectible accounts of Pankhurst Corporation was $26,000.During the period,$17,000 of accounts receivable were written off.At the end of the period,Pankhurst estimates that $30,000 of its accounts receivable will be uncollectible.What amount of uncollectible accounts expense should the firm report?

Accepted Answer

A) $9,000 
B) $17,000 
C) $21,000 
D) $30,000 
A) $9,000 
B) $17,000 
C) $21,000 
D) $30,000

Question 13

In periods of rising prices LIFO result in lower income tax expense than FIFO? Explain why this occurs.

Accepted Answer

LIFO results in lower income tax expense

Question 14

A favorable sales price variance means

Accepted Answer

A) The cost of products have decreased increasing the profit from the product. 
B) The actual selling price is greater than what was budgeted. 
C) The company has sold more products than was anticipated. 
D) The company sales price decreased causing more product to be sold 
A) The cost of products have decreased increasing the profit from the product. 
B) The actual selling price is greater than what was budgeted. 
C) The company has sold more products than was anticipated. 
D) The company sales price decreased causing more product to be sold

Question 15

Use the following to answer questions 
Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June:
  
-The cost of goods sold for the June 21st sale is:

Accepted Answer

A) $1,260 
B) $1,080 
C) $1,065 
D) $ 990 
A) $1,260 
B) $1,080 
C) $1,065 
D) $ 990

Question 16

A data storage device listing each customer,along with all the credit sales made to,as well as payments received on account from that customer is called a(n):

Accepted Answer

A) aging schedule 
B) marketing survey 
C) sales returns and allowances report 
D) subsidiary accounts receivable ledger 
A) aging schedule 
B) marketing survey 
C) sales returns and allowances report 
D) subsidiary accounts receivable ledger

Question 17

The credit terms for an $10,000 sale are 1/10,n/60.The amount of discount allowed on this sale is:

Accepted Answer

A) $1,000 
B) $100 
C) $60 
D) $600 
A) $1,000 
B) $100 
C) $60 
D) $600

Question 18

An unfavorable sale quantity variance reflects

Accepted Answer

A) Fewer units sold than budgeted. 
B) A lower actual selling price than budgeted 
C) An increase in the cost of products causing a decrease in income for the period 
D) An increase in the number of units sold 
A) Fewer units sold than budgeted. 
B) A lower actual selling price than budgeted 
C) An increase in the cost of products causing a decrease in income for the period 
D) An increase in the number of units sold

Question 19

Voyager Products,Inc.reported sales revenue of $295,000,beginning and ending accounts receivable of $24,600 and $31,800,respectively,and beginning and ending customer deposits of $18,600 and $14,500,respectively.Cash collections from customers during the year were:

Accepted Answer

A) $306,300 
B) $295,000 
C) $283,700 
D) $277,700 
A) $306,300 
B) $295,000 
C) $283,700 
D) $277,700

Question 20

The Accounts Receivable account is reported on the balance sheet as a:

Accepted Answer

A) contra asset 
B) current asset 
C) long-term asset 
D) current liability 
A) contra asset 
B) current asset 
C) long-term asset 
D) current liability

The journal entry to remove a specific customer's account,once it is identified as uncollectible,would include a:

The inventory method that results in the highest net income during periods of declining prices is

Anthony Company sold merchandise on account to a customer at a price of $5,000.The merchandise cost Anthony $4,200.The terms of the sale were 3/10,n/30.If the customer paid within the discount period,by how much did this transaction increase Anthony's net income?

The journal entry to record a customer's payment within the discount period would include all but one of the following.

In times of declining prices, generally result(s)in the net income.

The account which is reported at its net realizable value is:

Under which method are the most recent costs included in cost of goods sold

If a firm uses LIFO for income tax purposes,what method must be used for financial accounting purposes?

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The cost of goods sold for the June 30th sale is:

In periods of rising prices LIFO result in lower income tax expense than FIFO? Explain why this occurs.

A favorable sales price variance means

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The cost of goods sold for the June 21st sale is:

A data storage device listing each customer,along with all the credit sales made to,as well as payments received on account from that customer is called a(n):

The credit terms for an $10,000 sale are 1/10,n/60.The amount of discount allowed on this sale is:

An unfavorable sale quantity variance reflects

Voyager Products,Inc.reported sales revenue of $295,000,beginning and ending accounts receivable of $24,600 and $31,800,respectively,and beginning and ending customer deposits of $18,600 and $14,500,respectively.Cash collections from customers during the year were:

The Accounts Receivable account is reported on the balance sheet as a:

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 10: Recording and Evaluating Revenue Process Activities

The journal entry to remove a specific customer's account,once it is identified as uncollectible,would include a:

The inventory method that results in the highest net income during periods of declining prices is

Anthony Company sold merchandise on account to a customer at a price of $5,000.The merchandise cost Anthony $4,200.The terms of the sale were 3/10,n/30.If the customer paid within the discount period,by how much did this transaction increase Anthony's net income?

The journal entry to record a customer's payment within the discount period would include all but one of the following.

In times of declining prices,______ generally result(s)in the ______ net income.

The account which is reported at its net realizable value is:

Under which method are the most recent costs included in cost of goods sold

If a firm uses LIFO for income tax purposes,what method must be used for financial accounting purposes?

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The cost of goods sold for the June 30th sale is:

In periods of rising prices LIFO result in lower income tax expense than FIFO? Explain why this occurs.

A favorable sales price variance means

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The cost of goods sold for the June 21st sale is:

A data storage device listing each customer,along with all the credit sales made to,as well as payments received on account from that customer is called a(n):

The credit terms for an $10,000 sale are 1/10,n/60.The amount of discount allowed on this sale is:

An unfavorable sale quantity variance reflects

Voyager Products,Inc.reported sales revenue of $295,000,beginning and ending accounts receivable of $24,600 and $31,800,respectively,and beginning and ending customer deposits of $18,600 and $14,500,respectively.Cash collections from customers during the year were:

The Accounts Receivable account is reported on the balance sheet as a:

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

In times of declining prices, generally result(s)in the net income.