Question 1

Which of the following risks is NOT associated with financial information?

Accepted Answer

A) errors in recording and updating the financial accounting information 
B) unauthorized access to the financial accounting records 
C) loss of the data in the financial accounting records 
D) loss of product quality 
A) errors in recording and updating the financial accounting information 
B) unauthorized access to the financial accounting records 
C) loss of the data in the financial accounting records 
D) loss of product quality

Question 2

Record each event in the accounting equation below.Include both amounts and account titles.
  
3.Which of the four financial statements are affected by the adjusting entry to accrue interest?
     4.Would your answer in 2.be different if the note was a $20,000,6-month,9% note instead of a 3-month note?

Accepted Answer

@#IMG-DLM&_TB5475_00 3.
 @#IMG-DLM&_TB54

Question 3

At a fast-food restaurant,employees punch separate keys for each item on the menu that a customer orders.This control is primarily designed to prevent ________.

Accepted Answer

A) errors in recording and updating the financial accounting information 
B) unauthorized access to the financial accounting records 
C) loss of the data in the financial accounting records 
D) incorrect acceptance of material items 
A) errors in recording and updating the financial accounting information 
B) unauthorized access to the financial accounting records 
C) loss of the data in the financial accounting records 
D) incorrect acceptance of material items

Question 4

On May 1,Counts,Inc.has a balance of $1,000 in office supplies.During May,the company buys $500 more of the office supplies.On May 31,the company counts the supplies and finds $200 of supplies remaining.What will the company report on its income statement for the month of May?

Accepted Answer

A) Supplies expense of $1,300 
B) Supplies of $500 
C) Supplies of $1,500 
D) Supplies expense of $500 
A) Supplies expense of $1,300 
B) Supplies of $500 
C) Supplies of $1,500 
D) Supplies expense of $500

Question 5

Accounting software guarantees that all transactions have been recorded properly.

Accepted Answer

A) True 
 B)False

Question 6

A computerized accounting system is completely safe from fraud.

Accepted Answer

A) True 
 B)False

Question 7

Prepaid insurance had a balance of $1,000 on the company's December 31,2011 balance sheet.On June 1,2012,the company paid an additional insurance premium of $3,000.Prepaid insurance had a balance of $1,250 on the company's December 31,2012 balance sheet.How much insurance expense will be reported on the company's income statement for the year ended December 31,2012?

Accepted Answer

A) $3,000 
B) $4,250 
C) $1,000 
D) $2,750 
A) $3,000 
B) $4,250 
C) $1,000 
D) $2,750

Question 8

A deferral is a transaction in which the exchange of dollars comes before the action.

Accepted Answer

A) True 
 B)False

Question 9

Hen House,Inc.collects all subscription revenue in advance.At December 31,2011,the company owed $50,000 to customers for unearned revenue.During 2012,the company received $150,000 in advance from its customers and delivered $190,000 of magazines to its customers.How much subscription revenue will Hen House,Inc.report on its income statement for the year ended December 31,2012?

Accepted Answer

A) $200,000 
B) $190,000 
C) $10,000 
D) $210,000 
A) $200,000 
B) $190,000 
C) $10,000 
D) $210,000

Question 10

The total payroll is $4,000 per day of work.If the accounting period ends on Friday of a given week,what entry must be made to the company's accounting records?

Accepted Answer

A) Decrease Cash by $20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount. 
B) Increase Salaries payable by $20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount. 
C) Increase Salaries payable by $20,000 and increase shareholders' equity by recognizing Salaries expense for the same amount. 
D) Decrease Cash by $4,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount. 
A) Decrease Cash by $20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount. 
B) Increase Salaries payable by $20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount. 
C) Increase Salaries payable by $20,000 and increase shareholders' equity by recognizing Salaries expense for the same amount. 
D) Decrease Cash by $4,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.

Question 11

The profit margin on sales ratio measures the markup on a company's goods.

Accepted Answer

A) True 
 B)False

Question 12

On June 1,Ren,Inc.paid $12,000 for one year of rent in advance.In Ren's information system,the $12,000 was recorded as prepaid rent.Ren forgot to make the necessary adjusting entry before preparing its annual financial statements on December 31.Put an X in the appropriate box to show how each of these line items will be reported on Ren's financial statements.Dollar amounts are not required.

Accepted Answer

The answer of On June 1,Ren,Inc.paid $12,000 for one year...

Question 13

Identify the effects of each of the following items on the accounting equation.Show the correct dollar amount and write in the name of the account involved.The first entry has been done for you.
a.Supplies used up during the period,$100
b.Prepaid rent used up during the period,$320
c.Interest accrued on a note payable but unpaid,$250
d.Depreciation on long-term assets,$6,000
e.The portion of unearned revenue that has been earned,$1,400
f.A $12,000,12-month insurance policy was purchased 3 months ago.An end of the year adjustment must be made

Accepted Answer

The answer of Identify the effects of each of the...

Question 14

Toys for Boys,Inc.had prepaid insurance of $7,200 on January 1,2011.This amount relates to a 12-month insurance policy purchased on July 1,2010 for $14,400.On July 1,2011,Toys for Boys purchased more insurance coverage by paying $9,000 for a new one-year policy.The company's year ends on December 31,2011 and all adjustments for the whole year are made on that date so that financial statements can be prepared.What amount should appear on the December 31,2011 balance sheet as prepaid insurance? What amount should be reported on the year ended December 31,2011 income statement as insurance expense?

Accepted Answer

Prepaid insurance at Dec.31,20

Question 15

Miss Hap,the inexperienced accountant,made the following adjustments to the accounting system of Bank,Rupp,& Baroque,Inc.The adjustments were made based on the information below the accounting equation worksheet.
   a.Unearned revenue has a December 31 balance of $50,000 before adjustment.Sixty percent of the unearned revenue has been earned by the end of the year.
b.before adjustment the office supplies account is $600.Only $200 of the supplies remain as of the end of the year.
c.Depreciated the $100,000 equipment purchased two years ago.The estimated useful life is ten years,and it has $0 residual value.
d.Interest accrues on a $2,000,10% note receivable that has been outstanding the whole year.
e.Salaries and wages earned by employees but unpaid are $4,000.
Required: Cross out any incorrect account titles or dollar amounts in the worksheet shown above.Write in the correct account titles and dollar amounts where needed.

Accepted Answer

The answer of Miss Hap,the inexperienced accountant,made the following adjustments...

Question 16

If a company has Other receivables on its balance sheet it most likely will show ________ on its income statement.

Accepted Answer

A) Interest revenue 
B) Interest expense 
C) Interest receivable 
D) Interest payable 
A) Interest revenue 
B) Interest expense 
C) Interest receivable 
D) Interest payable

Question 17

Using the following income statement,calculate the profit margin on sales ratio.

Accepted Answer

A) 2)5% 
B) 50.0% 
C) 47.5% 
D) 5)0% 
A) 2)5% 
B) 50.0% 
C) 47.5% 
D) 5)0%

Question 18

Details,Inc.paints a truck on May 31.The customer picks up the truck on June 6 and mails the payment to Details on August 5.Details receives the check in the mail on August 8.When should Details record that the revenue was earned?

Accepted Answer

A) May 31 
B) June 6 
C) August 5 
D) August 8 
A) May 31 
B) June 6 
C) August 5 
D) August 8

Question 19

Identify the effects of each of the following items on the accounting equation.Show the correct dollar amount.Account titles are not required.The first entry has been done for you.
a.Prepaid rent used up,$400
b.Only $500 remains unearned of the $3,500 recognized as unearned revenue at the beginning of the period
c.Of the $700 in office supplies on hand at the beginning of the period,only $100 remained at the end of the period
d.Interest accrued but unpaid on a note payable amounts to $120
e.Depreciation of the long-term assets amounts to $12,000
f.Wages and salaries earned by employees but unpaid amount to $10,000

Accepted Answer

The answer of Identify the effects of each of the...

Question 20

Clean Sweep,Inc.started the month of June with $600 worth of cleaning supplies.During the month,Clean Sweep purchased $400 of supplies for cash.At June 30,$300 worth of supplies was unused.How much cleaning supplies expense will the company show on its income statement for the month of June?

Accepted Answer

A) $300 
B) $100 
C) $1,000 
D) $700 
A) $300 
B) $100 
C) $1,000 
D) $700

Which of the following risks is NOT associated with financial information?

Record each event in the accounting equation below.Include both amounts and account titles. 3.Which of the four financial statements are affected by the adjusting entry to accrue interest? 4.Would your answer in 2.be different if the note was a $20,000,6-month,9% note instead of a 3-month note?

At a fast-food restaurant,employees punch separate keys for each item on the menu that a customer orders.This control is primarily designed to prevent ________.

On May 1,Counts,Inc.has a balance of $1,000 in office supplies.During May,the company buys $500 more of the office supplies.On May 31,the company counts the supplies and finds $200 of supplies remaining.What will the company report on its income statement for the month of May?

Accounting software guarantees that all transactions have been recorded properly.

A computerized accounting system is completely safe from fraud.

A deferral is a transaction in which the exchange of dollars comes before the action.

The total payroll is $4,000 per day of work.If the accounting period ends on Friday of a given week,what entry must be made to the company's accounting records?

The profit margin on sales ratio measures the markup on a company's goods.

If a company has Other receivables on its balance sheet it most likely will show ________ on its income statement.

Using the following income statement,calculate the profit margin on sales ratio.

Details,Inc.paints a truck on May 31.The customer picks up the truck on June 6 and mails the payment to Details on August 5.Details receives the check in the mail on August 8.When should Details record that the revenue was earned?

Clean Sweep,Inc.started the month of June with $600 worth of cleaning supplies.During the month,Clean Sweep purchased $400 of supplies for cash.At June 30,$300 worth of supplies was unused.How much cleaning supplies expense will the company show on its income statement for the month of June?

Business: Whats It All About

Qualities of Accounting Information

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 3: Accruals and Deferrals: Timing Is Everything in Accounting

Which of the following risks is NOT associated with financial information?

Record each event in the accounting equation below.Include both amounts and account titles. 3.Which of the four financial statements are affected by the adjusting entry to accrue interest? 4.Would your answer in 2.be different if the note was a $20,000,6-month,9% note instead of a 3-month note?

At a fast-food restaurant,employees punch separate keys for each item on the menu that a customer orders.This control is primarily designed to prevent ________.

On May 1,Counts,Inc.has a balance of $1,000 in office supplies.During May,the company buys $500 more of the office supplies.On May 31,the company counts the supplies and finds $200 of supplies remaining.What will the company report on its income statement for the month of May?

Accounting software guarantees that all transactions have been recorded properly.

A computerized accounting system is completely safe from fraud.

A deferral is a transaction in which the exchange of dollars comes before the action.

The total payroll is $4,000 per day of work.If the accounting period ends on Friday of a given week,what entry must be made to the company's accounting records?

The profit margin on sales ratio measures the markup on a company's goods.

If a company has Other receivables on its balance sheet it most likely will show ________ on its income statement.

Using the following income statement,calculate the profit margin on sales ratio.

Details,Inc.paints a truck on May 31.The customer picks up the truck on June 6 and mails the payment to Details on August 5.Details receives the check in the mail on August 8.When should Details record that the revenue was earned?

Clean Sweep,Inc.started the month of June with $600 worth of cleaning supplies.During the month,Clean Sweep purchased $400 of supplies for cash.At June 30,$300 worth of supplies was unused.How much cleaning supplies expense will the company show on its income statement for the month of June?

Business: Whats It All About

Qualities of Accounting Information

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters