Question 1

The ending merchandise inventory was understated.This error would cause:

Accepted Answer

A) assets to be understated. 
B) assets to be overstated. 
C) net income to be overstated. 
D) None of these are correct. 
A) assets to be understated. 
B) assets to be overstated. 
C) net income to be overstated. 
D) None of these are correct.

Question 2

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).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Accounts } & & & & \
\text { Payable } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 3

The following amounts are on the Riley's Clothing worksheet for the month ended March 30.
Required: Calculate the following:
a)Net sales
b)Net purchases
c)Net cost of purchases
d)Cost of goods available for sale
e)Cost of goods sold
f)Gross profit
$$\begin{array} { l c r } 
\text { Account } &{ \text { Income Statement } } \
& \text { Debit } & \text { Credit } \
\hline \hline \text { Sales } & & 40 \
\text { Sales Returns and Allowances } & 4 & \
\text { Sales Discounts } & 2 & \
\text { Income Summary } & 11 & 13 \
\text { Purchases } & 15 & \
\text { Purchases Discount } & & 2 \
\text { Purchases Returns and Allowances } & & 4 \
\text { Freight-In } & 2 &
\end{array}$$

Accepted Answer

a)$34,b)$9

Question 4

Reversing entries are the opposite of adjusting entries.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the purpose of a classified balance sheet.Include a description of the major balance sheet classifications including: current assets,plant and equipment,current liabilities,and long-term liabilities.

Accepted Answer

A classified balance sheet provides more

Question 6

Net Sales - Cost of Goods Sold is equal to:

Accepted Answer

A) Net Income from Operations. 
B) Operating Expenses. 
C) Gross Profit. 
D) Gross Expenses. 
A) Net Income from Operations. 
B) Operating Expenses. 
C) Gross Profit. 
D) Gross Expenses.

Question 7

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Accepted Answer

A) True 
 B)False

Question 8

In what category in a classified balance sheet is Store Equipment found?

Accepted Answer

A) Plant and Equipment 
B) Current Liabilities 
C) Current Assets 
D) Owner's Equity 
A) Plant and Equipment 
B) Current Liabilities 
C) Current Assets 
D) Owner's Equity

Question 9

Prepare the closing entries from the following information on the PC Pros Company worksheet income statement columns.
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Income Statement }$
$\begin{array}{lrr} 
& \text { Debit } & \text { Credit } \
\text { Sales } & & 20 \
\text { Sales Ret. and Allow. } & 1 &  \
\text { Income Summary } & 5 &6 \
\text { Purchases } & 14 & \
\text { Pur. Ret. and Allow. } & &2 \
\text { Insurance Expense } & 3 &\
\text { Office Salaries Expense }&1&
\end{array}$

Accepted Answer

The answer of Prepare the closing entries from the following...

Question 10

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).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Purchases } & & & & \
\text { Returns \& } & & & & \
\text { Allowances } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 11

Gross Profit equals:

Accepted Answer

A) Net sales - Other Expenses. 
B) Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold. 
C) Cost of Goods Sold - Other Expenses. 
D) Cost of Goods Sold - Operating Expenses. 
A) Net sales - Other Expenses. 
B) Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold. 
C) Cost of Goods Sold - Other Expenses. 
D) Cost of Goods Sold - Operating Expenses.

Question 12

When calculating Cost of Goods Sold on the Income Statement,the beginning and ending inventory values are both required.

Accepted Answer

A) True 
 B)False

Question 13

Administrative Expenses include:

Accepted Answer

A) Insurance Expense. 
B) Delivery Expense. 
C) Advertising Expense. 
D) None of the above are correct. 
A) Insurance Expense. 
B) Delivery Expense. 
C) Advertising Expense. 
D) None of the above are correct.

Question 14

All adjusting entries can be reversed.

Accepted Answer

A) True 
 B)False

Question 15

Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 16

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).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column } 4 \
\hline \text { Wages Expense } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 17

Which of the following is an operating expense?

Accepted Answer

A) Salaries Expense 
B) Payroll Tax Expense 
C) Purchases 
D) Both A and B are correct. 
A) Salaries Expense 
B) Payroll Tax Expense 
C) Purchases 
D) Both A and B are correct.

Question 18

After the closing entries have been posted:

Accepted Answer

A) the temporary accounts are zeroed out. 
B) the Capital account includes the current net profit or loss. 
C) the post-closing trial balance is prepared. 
D) All of these answers are correct. 
A) the temporary accounts are zeroed out. 
B) the Capital account includes the current net profit or loss. 
C) the post-closing trial balance is prepared. 
D) All of these answers are correct.

Question 19

The income statement is prepared from the:

Accepted Answer

A) Post-Closing Trial Balance. 
B) worksheet. 
C) general journal. 
D) statement of owner's equity. 
A) Post-Closing Trial Balance. 
B) worksheet. 
C) general journal. 
D) statement of owner's equity.

Question 20

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).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Depreciation } \
\text { Expense }
\end{array} & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

The ending merchandise inventory was understated.This error would cause:

Reversing entries are the opposite of adjusting entries.

Discuss the purpose of a classified balance sheet.Include a description of the major balance sheet classifications including: current assets,plant and equipment,current liabilities,and long-term liabilities.

Net Sales - Cost of Goods Sold is equal to:

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

In what category in a classified balance sheet is Store Equipment found?

Gross Profit equals:

When calculating Cost of Goods Sold on the Income Statement,the beginning and ending inventory values are both required.

Administrative Expenses include:

All adjusting entries can be reversed.

Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.

Which of the following is an operating expense?

After the closing entries have been posted:

The income statement is prepared from the:

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: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet 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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

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

The ending merchandise inventory was understated.This error would cause:

Reversing entries are the opposite of adjusting entries.

Discuss the purpose of a classified balance sheet.Include a description of the major balance sheet classifications including: current assets,plant and equipment,current liabilities,and long-term liabilities.

Net Sales - Cost of Goods Sold is equal to:

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

In what category in a classified balance sheet is Store Equipment found?

Gross Profit equals:

When calculating Cost of Goods Sold on the Income Statement,the beginning and ending inventory values are both required.

Administrative Expenses include:

All adjusting entries can be reversed.

Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.

Which of the following is an operating expense?

After the closing entries have been posted:

The income statement is prepared from the:

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: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet 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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters