Question 1

Accumulated Depreciation-Buildings should be shown on the:

Accepted Answer

A) income statement. 
B) balance sheet. 
C) statement of owner's equity. 
D) The account does not appear on a financial statement since it is a temporary account. 
A) income statement. 
B) balance sheet. 
C) statement of owner's equity. 
D) The account does not appear on a financial statement since it is a temporary account. B

Question 2

Under the accrual system, revenue is recognized when earned.

Accepted Answer

A) True 
 B)False  True

Question 3

The normal balance for Unearned Rent is:

Accepted Answer

A) a credit. 
B) a debit. 
C) zero. 
D) dependent on circumstances. 
A) a credit. 
B) a debit. 
C) zero. 
D) dependent on circumstances. A

Question 4

On the worksheet, purchases appear in the balance sheet columns.

Accepted Answer

A) True 
 B)False

Question 5

On the worksheet the beginning Merchandise Inventory account appears in:

Accepted Answer

A) the adjustment column. 
B) the trial balance and the balance sheet columns. 
C) the trial balance and adjustment columns. 
D) All of these answers are correct. 
A) the adjustment column. 
B) the trial balance and the balance sheet columns. 
C) the trial balance and adjustment columns. 
D) All of these answers are correct.

Question 6

The adjusted trial balance on the worksheet:

Accepted Answer

A) contains balances from the permanent accounts. 
B) contains balances from the temporary accounts. 
C) contains balances for all accounts with balances. 
D) None of the above answers are correct. 
A) contains balances from the permanent accounts. 
B) contains balances from the temporary accounts. 
C) contains balances for all accounts with balances. 
D) None of the above answers are correct.

Question 7

The adjustment for supplies used would be to:

Accepted Answer

A) debit Supplies Expense; credit Supplies. 
B) debit Supplies; credit Cash. 
C) debit Supplies; credit Supplies Expense. 
D) debit Supplies; credit Accounts Payable. 
A) debit Supplies Expense; credit Supplies. 
B) debit Supplies; credit Cash. 
C) debit Supplies; credit Supplies Expense. 
D) debit Supplies; credit Accounts Payable.

Question 8

When the adjustment for depreciation is made:

Accepted Answer

A) total assets decrease. 
B) total expenses decrease. 
C) total liabilities increase. 
D) None of the answers are correct. 
A) total assets decrease. 
B) total expenses decrease. 
C) total liabilities increase. 
D) None of the answers are correct.

Question 9

Calculate: (a)net sales, (b)cost of goods sold, (c)gross profit, and (d)net income from the following:

Accepted Answer

a)$1,280
b

Question 10

Joe received $5,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

Accepted Answer

A) debit Cash; credit Rental Income 
B) debit Cash; credit Unearned Rent 
C) debit Unearned Rent, credit Rental Income 
D) debit Unearned Rent, credit Cash 
A) debit Cash; credit Rental Income 
B) debit Cash; credit Unearned Rent 
C) debit Unearned Rent, credit Rental Income 
D) debit Unearned Rent, credit Cash

Question 11

Gross profit less operating expenses equals:

Accepted Answer

A) Cost of Goods Sold. 
B) net sales. 
C) net purchases. 
D) net income. 
A) Cost of Goods Sold. 
B) net sales. 
C) net purchases. 
D) net income.

Question 12

The financial statement on which Rental Income would appear is the:

Accepted Answer

A) income statement. 
B) owner's equity statement. 
C) balance sheet. 
D) operations statement. 
A) income statement. 
B) owner's equity statement. 
C) balance sheet. 
D) operations statement.

Question 13

On the worksheet, the Beginning Inventory account is found on the Balance Sheet and Income Statement columns.

Accepted Answer

A) True 
 B)False

Question 14

Beginning and ending inventories for Webster's Books are $9,000 and $6,000, respectively. The debit amounts (not including Income Summary)in the income statement columns of the worksheet total $14,000, and the credit amounts (not including Income Summary)total $15,500. The firm has a:

Accepted Answer

A) net income of $1,500. 
B) net loss of $1,500. 
C) net loss of $3,000. 
D) net income of $3,000. 
A) net income of $1,500. 
B) net loss of $1,500. 
C) net loss of $3,000. 
D) net income of $3,000.

Question 15

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s)in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-

Accepted Answer

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

Question 16

When using a periodic inventory method, what account is increased when you buy merchandise inventory?

Accepted Answer

A) Cost of Goods Sold 
B) Beginning Inventory 
C) Ending Inventory 
D) Purchases 
A) Cost of Goods Sold 
B) Beginning Inventory 
C) Ending Inventory 
D) Purchases

Question 17

As the Unearned Rent is earned:

Accepted Answer

A) the liability account is decreased and the revenue account is increased. 
B) the liability account is increased and the revenue account is decreased. 
C) the liability account is decreased and the revenue account is not affected. 
D) the liability account is not affected but the revenue account is decreased. 
A) the liability account is decreased and the revenue account is increased. 
B) the liability account is increased and the revenue account is decreased. 
C) the liability account is decreased and the revenue account is not affected. 
D) the liability account is not affected but the revenue account is decreased.

Question 18

Recording the adjustment for supplies will:

Accepted Answer

A) increase the total liability and increase the total expenses. 
B) increase the total assets and increase the total expenses. 
C) decrease the total assets and increase the total expenses. 
D) decrease the total assets and decrease the total expenses. 
A) increase the total liability and increase the total expenses. 
B) increase the total assets and increase the total expenses. 
C) decrease the total assets and increase the total expenses. 
D) decrease the total assets and decrease the total expenses.

Question 19

A characteristic of a perpetual inventory method is:

Accepted Answer

A) it keeps continual track of inventory. 
B) it records units on hand at the beginning of the period. 
C) it records units sold immediately. 
D) All of these answers are correct. 
A) it keeps continual track of inventory. 
B) it records units on hand at the beginning of the period. 
C) it records units sold immediately. 
D) All of these answers are correct.

Question 20

The normal balance of Income Summary is:

Accepted Answer

A) debit. 
B) credit. 
C) The account does not have a normal balance. 
D) It depends on which financial statement it appears. 
A) debit. 
B) credit. 
C) The account does not have a normal balance. 
D) It depends on which financial statement it appears.

Exam 11: Preparing a Worksheet for a Merchandise Company

Accumulated Depreciation-Buildings should be shown on the:

Under the accrual system, revenue is recognized when earned.

The normal balance for Unearned Rent is:

On the worksheet, purchases appear in the balance sheet columns.

On the worksheet the beginning Merchandise Inventory account appears in:

The adjusted trial balance on the worksheet:

The adjustment for supplies used would be to:

When the adjustment for depreciation is made:

Calculate: (a)net sales, (b)cost of goods sold, (c)gross profit, and (d)net income from the following:

Joe received $5,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

Gross profit less operating expenses equals:

The financial statement on which Rental Income would appear is the:

On the worksheet, the Beginning Inventory account is found on the Balance Sheet and Income Statement columns.

Beginning and ending inventories for Webster's Books are $9,000 and $6,000, respectively. The debit amounts (not including Income Summary)in the income statement columns of the worksheet total $14,000, and the credit amounts (not including Income Summary)total $15,500. The firm has a:

When using a periodic inventory method, what account is increased when you buy merchandise inventory?

As the Unearned Rent is earned:

Recording the adjustment for supplies will:

A characteristic of a perpetual inventory method is:

The normal balance of Income Summary is:

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

Completion of the Accounting Cycle 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

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