Question 1

Discuss the reasons a company would consider using a periodic inventory system.

Accepted Answer

Companies selling a variety of merchandi

Question 2

Interest Expense is:

Accepted Answer

A) a cost of borrowing money. 
B) included in the "Other Expenses" on the income statement. 
C) has a normal debit balance. 
D) All of the above are correct. 
A) a cost of borrowing money. 
B) included in the "Other Expenses" on the income statement. 
C) has a normal debit balance. 
D) All of the above are correct.

Question 3

Unearned Rent results because:

Accepted Answer

A) no fee has been paid, but the service is complete. 
B) the fee is earned but not collected. 
C) the fee has been collected before the service has been provided. 
D) the fee has been paid, and the service is complete. 
A) no fee has been paid, but the service is complete. 
B) the fee is earned but not collected. 
C) the fee has been collected before the service has been provided. 
D) the fee has been paid, and the service is complete.

Question 4

The Income Summary account is used to adjust beginning and ending inventories.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

The goods a company has available to sell to customers are called:

Accepted Answer

A) Supplies. 
B) Sales. 
C) Cost of Goods Sold. 
D) Merchandise Inventory. 
A) Supplies. 
B) Sales. 
C) Cost of Goods Sold. 
D) Merchandise Inventory.

Question 8

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 9

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 10

Sales Discount is used when calculating Net Purchases.

Accepted Answer

A) True 
 B)False

Question 11

The perpetual inventory method is:

Accepted Answer

A) used by companies with a variety of merchandise with low unit prices. 
B) used by companies with high amounts of inventory. 
C) not used by many companies today. 
D) does not ever require a physical inventory. 
A) used by companies with a variety of merchandise with low unit prices. 
B) used by companies with high amounts of inventory. 
C) not used by many companies today. 
D) does not ever require a physical inventory.

Question 12

The adjustment for salaries is necessary:

Accepted Answer

A) because the employer did not have enough cash to write the paychecks. 
B) to recognize the revenue in the period earned. 
C) to recognize the expense in the period incurred. 
D) None of the above answers are correct. 
A) because the employer did not have enough cash to write the paychecks. 
B) to recognize the revenue in the period earned. 
C) to recognize the expense in the period incurred. 
D) None of the above answers are correct.

Question 13

Doug paid $1,200 on a one-year insurance policy on March 1. The entry included a debit to Prepaid Insurance. The adjusting entry on December 31 would include a:

Accepted Answer

A) debit to Prepaid Insurance for $1,000; and a credit to Cash for $1,000. 
B) debit to Insurance Expense for $1,000; and a credit to Prepaid Insurance for $1,000. 
C) debit to Insurance Expense for $1,200; and credit to Prepaid Insurance for $1,200. 
D) debit to Cash for $1,200; and credit to Prepaid Insurance for $1,200. 
A) debit to Prepaid Insurance for $1,000; and a credit to Cash for $1,000. 
B) debit to Insurance Expense for $1,000; and a credit to Prepaid Insurance for $1,000. 
C) debit to Insurance Expense for $1,200; and credit to Prepaid Insurance for $1,200. 
D) debit to Cash for $1,200; and credit to Prepaid Insurance for $1,200.

Question 14

The amount of supplies used causes a decrease in Supplies and an increase in expense.

Accepted Answer

A) True 
 B)False

Question 15

The adjustment for depreciation expense was omitted; this would:

Accepted Answer

A) overstate the period's expenses and overstate the period end liabilities. 
B) overstate the period's expenses and understate the period end liabilities. 
C) understate the period's expenses and overstate the period's assets. 
D) understate the period's expenses and understate the period's assets. 
A) overstate the period's expenses and overstate the period end liabilities. 
B) overstate the period's expenses and understate the period end liabilities. 
C) understate the period's expenses and overstate the period's assets. 
D) understate the period's expenses and understate the period's assets.

Question 16

Calculate the missing figures (a-k)in each of the following independent scenarios.
-

Accepted Answer

The answer of Calculate the missing figures (a-k)in each of...

Question 17

The adjustment for accrued salaries would be to:

Accepted Answer

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

Question 18

Which inventory appears in the balance sheet column of the worksheet?

Accepted Answer

A) Ending inventory 
B) Beginning inventory 
C) Combination of beginning and ending inventories 
D) Inventory does not appear on the balance sheet. 
A) Ending inventory 
B) Beginning inventory 
C) Combination of beginning and ending inventories 
D) Inventory does not appear on the balance sheet.

Question 19

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Accepted Answer

A) Periodic 
B) Perpetual 
C) Net Income 
D) Cost of Goods Sold 
A) Periodic 
B) Perpetual 
C) Net Income 
D) Cost of Goods Sold

Question 20

Calculate the missing figures (a-k)in each of the following independent scenarios.
-

Accepted Answer

The answer of Calculate the missing figures (a-k)in each of...

Exam 11: Preparing a Worksheet for a Merchandise Company

Discuss the reasons a company would consider using a periodic inventory system.

Interest Expense is:

Unearned Rent results because:

The Income Summary account is used to adjust beginning and ending inventories.

The goods a company has available to sell to customers are called:

Sales Discount is used when calculating Net Purchases.

The perpetual inventory method is:

The adjustment for salaries is necessary:

Doug paid $1,200 on a one-year insurance policy on March 1. The entry included a debit to Prepaid Insurance. The adjusting entry on December 31 would include a:

The amount of supplies used causes a decrease in Supplies and an increase in expense.

The adjustment for depreciation expense was omitted; this would:

Calculate the missing figures (a-k)in each of the following independent scenarios. -

The adjustment for accrued salaries would be to:

Which inventory appears in the balance sheet column of the worksheet?

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Calculate the missing figures (a-k)in each of the following independent scenarios. -

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

Filters