Question 1

The Customer Deposits account is reported on the balance sheet as a:

Accepted Answer

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

Question 2

One example of a contra-asset is:

Accepted Answer

A) Sales Discount 
B) Sales Returns and Allowances 
C) Uncollectible Accounts Expense 
D) None of the above are contra assets. 
A) Sales Discount 
B) Sales Returns and Allowances 
C) Uncollectible Accounts Expense 
D) None of the above are contra assets.

Question 3

The sale of merchandise on account to a customer would:

Accepted Answer

A) increase assets 
B) increase liabilities 
C) decrease revenues 
D) decrease stockholders' equity 
A) increase assets 
B) increase liabilities 
C) decrease revenues 
D) decrease stockholders' equity

Question 4

Crete Carrier Corporation reported sales revenue of $1,724,000,accounts receivable of $179,000 at the beginning of the year,and accounts receivable of $201,000 at the end of the year.Cash collections from customers during the year were:

Accepted Answer

A) $1,702,000 
B) $1,724,000 
C) $1,746,000 
D) $1,423,000 
A) $1,702,000 
B) $1,724,000 
C) $1,746,000 
D) $1,423,000

Question 5

Which of the following statements about LIFO is false?

Accepted Answer

A) It results in a higher cost of goods sold during periods of rising prices. 
B) If inventory declines,it will result in a matching of current revenues and old costs 
C) The cost of ending inventory will probably be very different from current replacement cost. 
D) Firms that use LIFO run the risk of inventory obsolescence because they are keeping old goods on hand. 
A) It results in a higher cost of goods sold during periods of rising prices. 
B) If inventory declines,it will result in a matching of current revenues and old costs 
C) The cost of ending inventory will probably be very different from current replacement cost. 
D) Firms that use LIFO run the risk of inventory obsolescence because they are keeping old goods on hand.

Question 6

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 5th sale is:

Accepted Answer

A) $500 
B) $550 
C) $600 
D) $700 
A) $500 
B) $550 
C) $600 
D) $700

Question 7

Use the following to answer questions 
Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June:
  
-The cost of goods sold for the June 21 sale is:

Accepted Answer

A) $480 
B) $400 
C) $440 
D) $560 
A) $480 
B) $400 
C) $440 
D) $560

Question 8

If ending inventory is too big which of the following statements is true?

Accepted Answer

A) Cost of Good Sold is too big and income is too big 
B) Cost of Good Sold is too small and income is too big 
C) Cost of Good Sold is too small and income is too small 
D) Cost of Good Sold is too big and income is too small 
A) Cost of Good Sold is too big and income is too big 
B) Cost of Good Sold is too small and income is too big 
C) Cost of Good Sold is too small and income is too small 
D) Cost of Good Sold is too big and income is too small

Question 9

Under which method are the most recent costs included in ending inventory?

Accepted Answer

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

Question 10

Match between columns
                        Premises: A temporary account that keeps track of the cash discounts taken by customers who purchased merchandise on credit.
A costing method that assumes that the last items purchased will be the first items sold.
A variance created by the difference between the actual selling price and the budgeted sale price.
A temporary account that keeps track of the cost of customer dissatisfaction.
A variance that indicates the difference in revenue due to a change in sales volume.
The amount of total account receivables a company expects to collect after subtracting estimated uncollectible accounts.
Ending inventory will represent the cost of the most recent purchases as a result of this cost flow assumption.
This provides the perfect match of the cost of an inventory item and the revenue it generates.

Accepted Answer

The Answer of Sales returns and allowances and Last-in, last is...

Question 11

The journal entry to record a sales return made by a customer would include:

Accepted Answer

A) A debit to Accounts Receivable and a credit to Sales Returns 
B) A debit to Cash and Sales Returns 
C) A debit to Sales Returns and a credit to Accounts Receivable 
D) A debit to Accounts Receivable and a credit to Cash 
A) A debit to Accounts Receivable and a credit to Sales Returns 
B) A debit to Cash and Sales Returns 
C) A debit to Sales Returns and a credit to Accounts Receivable 
D) A debit to Accounts Receivable and a credit to Cash

Question 12

Constanza Company had a beginning and ending allowance for doubtful accounts balance of $23,000 and $27,000,respectively.If $12,000 of accounts were written off during the period,what was the uncollectible accounts expense?

Accepted Answer

A) $27,000 
B) $16,000 
C) $12,000 
D) $ 4,000 
A) $27,000 
B) $16,000 
C) $12,000 
D) $ 4,000

Question 13

One of the basic principles of accounting is objectivity.Why,then,do businesses estimate their uncollectible accounts expense instead of waiting to see which accounts receivable will not be collected.That would be objective,wouldn't it?

Accepted Answer

The amount of accounts receivable writte

Question 14

For the revenue process which of the following document sequences is correct?

Accepted Answer

A) Customer order,bill or lading,sales order,packing slip 
B) Sales order,packing slip,customer order,bill of lading 
C) Customer order,packing slip,sales order,bill of lading 
D) Customer order,sales order,packing slip,bill of lading 
A) Customer order,bill or lading,sales order,packing slip 
B) Sales order,packing slip,customer order,bill of lading 
C) Customer order,packing slip,sales order,bill of lading 
D) Customer order,sales order,packing slip,bill of lading

Question 15

In the following journal entry,revenue is being recognized: Cash XXX
Unearned Revenue XXX

Accepted Answer

A) after the cash is collected 
B) before the cash is collected 
C) no revenue is being recognized 
D) at the same time cash is collected 
A) after the cash is collected 
B) before the cash is collected 
C) no revenue is being recognized 
D) at the same time cash is collected

Question 16

During the current year,ending inventory was higher under the LIFO method than under the FIFO method.Which of the following statements about price changes is true?

Accepted Answer

A) Prices were unchanged. 
B) Prices were decreasing. 
C) Prices were increasing. 
D) Unable to determine from the information given 
A) Prices were unchanged. 
B) Prices were decreasing. 
C) Prices were increasing. 
D) Unable to determine from the information given

Question 17

Revenues are recognized when they are:

Accepted Answer

A) Earned and have received cash 
B) Received cash 
C) Earned and realized 
D) Realized 
A) Earned and have received cash 
B) Received cash 
C) Earned and realized 
D) Realized

Question 18

In times of rising prices,______ generally result(s)in the ______ ending inventory.

Accepted Answer

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

Question 19

Cady,Inc.,had beginning and ending accounts receivable balances of $35,000 and 32,000,respectively.During the period,$100,000 was collected from credit customers.What was the amount of credit sales during the period?

Accepted Answer

A) $135,000 
B) $132,000 
C) $100,000 
D) $97,000 
A) $135,000 
B) $132,000 
C) $100,000 
D) $97,000

Question 20

The journal entry to record the return of merchandise from a credit customer would include a:

Accepted Answer

A) credit to sales returns and allowances 
B) credit to accounts receivable 
C) debit to sales revenue 
D) debit to cash 
A) credit to sales returns and allowances 
B) credit to accounts receivable 
C) debit to sales revenue 
D) debit to cash

The Customer Deposits account is reported on the balance sheet as a:

One example of a contra-asset is:

The sale of merchandise on account to a customer would:

Crete Carrier Corporation reported sales revenue of $1,724,000,accounts receivable of $179,000 at the beginning of the year,and accounts receivable of $201,000 at the end of the year.Cash collections from customers during the year were:

Which of the following statements about LIFO is false?

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 5th sale is:

Use the following to answer questions Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June: -The cost of goods sold for the June 21 sale is:

If ending inventory is too big which of the following statements is true?

Under which method are the most recent costs included in ending inventory?

The journal entry to record a sales return made by a customer would include:

Constanza Company had a beginning and ending allowance for doubtful accounts balance of $23,000 and $27,000,respectively.If $12,000 of accounts were written off during the period,what was the uncollectible accounts expense?

One of the basic principles of accounting is objectivity.Why,then,do businesses estimate their uncollectible accounts expense instead of waiting to see which accounts receivable will not be collected.That would be objective,wouldn't it?

For the revenue process which of the following document sequences is correct?

In the following journal entry,revenue is being recognized: Cash XXX Unearned Revenue XXX

During the current year,ending inventory was higher under the LIFO method than under the FIFO method.Which of the following statements about price changes is true?

Revenues are recognized when they are:

In times of rising prices, generally result(s)in the ending inventory.

Cady,Inc.,had beginning and ending accounts receivable balances of $35,000 and 32,000,respectively.During the period,$100,000 was collected from credit customers.What was the amount of credit sales during the period?

The journal entry to record the return of merchandise from a credit customer would include 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 Customer Deposits account is reported on the balance sheet as a:

One example of a contra-asset is:

The sale of merchandise on account to a customer would:

Crete Carrier Corporation reported sales revenue of $1,724,000,accounts receivable of $179,000 at the beginning of the year,and accounts receivable of $201,000 at the end of the year.Cash collections from customers during the year were:

Which of the following statements about LIFO is false?

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 5th sale is:

Use the following to answer questions Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June: -The cost of goods sold for the June 21 sale is:

If ending inventory is too big which of the following statements is true?

Under which method are the most recent costs included in ending inventory?

The journal entry to record a sales return made by a customer would include:

Constanza Company had a beginning and ending allowance for doubtful accounts balance of $23,000 and $27,000,respectively.If $12,000 of accounts were written off during the period,what was the uncollectible accounts expense?

One of the basic principles of accounting is objectivity.Why,then,do businesses estimate their uncollectible accounts expense instead of waiting to see which accounts receivable will not be collected.That would be objective,wouldn't it?

For the revenue process which of the following document sequences is correct?

In the following journal entry,revenue is being recognized: Cash XXX Unearned Revenue XXX

During the current year,ending inventory was higher under the LIFO method than under the FIFO method.Which of the following statements about price changes is true?

Revenues are recognized when they are:

In times of rising prices,______ generally result(s)in the ______ ending inventory.

Cady,Inc.,had beginning and ending accounts receivable balances of $35,000 and 32,000,respectively.During the period,$100,000 was collected from credit customers.What was the amount of credit sales during the period?

The journal entry to record the return of merchandise from a credit customer would include 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 rising prices, generally result(s)in the ending inventory.