Exam 12: Completion of the Accounting Cycle for a Merchandise Company

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Sales Discounts

Which of the following adjustments may be reserved?

The entry to close the Withdrawals account to Capital was omitted.This error would cause:

Reversing entries are done when assets or liabilities are increasing and have no previous balance.

Net Purchases are:

Liquidity is:

The left and right columns on the financial statements are used for debits and credits.

Other Expense is used to record:

If beginning inventory is $5,000,ending inventory is $3,000,net purchases is $12,000 and Freight-in is $400,what is the Cost of Goods Available for Sale?

The entry to record the adjustment for depreciation on equipment would be a debit to Depreciation Expense-Equipment and a credit to Equipment.

The amount found in the Income Statement debit column on the worksheet for Income Summary is the:

The calculation of Net Purchases does not include:

The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is:

Net Sales + Sales Discounts + Sales Returns and Allowances equals:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Cash

Which of the following is an operating expense?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Accumulated Depr. Equip.

Net Sales are:

Identify the category(s)of each of the accounts below. Current Asset Plant and Equipment Current Liabilities Long-Term Liabilities 0) Cash Current Asset a) Accts. Receivable b) Accts. Payable c) Mortgage Payable d)Unearned Revenue e)Accounts Receivable.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Purchases