Question 1

An account never used in an adjusting entry is:

Accepted Answer

A) Consulting Fees-Revenue. 
B) Interest Payable. 
C) Equipment. 
D) Accumulated Depreciation - Equipment. 
A) Consulting Fees-Revenue. 
B) Interest Payable. 
C) Equipment. 
D) Accumulated Depreciation - Equipment.

Question 2

Indicate the financial statement(s)on which you would find the following items:
a)Cost of goods sold
b)Freight-In
c)Ending Inventory
d)Beginning Inventory
e)Sales Discount

Accepted Answer

a)Income Statement
b)Income St

Question 3

The beginning inventory is adjusted by crediting Merchandise Inventory and debiting Income Summary.

Accepted Answer

A) True 
 B)False

Question 4

The ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 5

Mortgage Payable is found on the income statement.

Accepted Answer

A) True 
 B)False

Question 6

When the adjustment is made for depreciation, both the Depreciation Expense account and Accumulated Depreciation account are increased.

Accepted Answer

A) True 
 B)False

Question 7

Ending inventory:

Accepted Answer

A) increases Cost of Goods Sold. 
B) decreases Cost of Goods Sold. 
C) does not affect Cost of Goods Sold. 
D) increases liabilities. 
A) increases Cost of Goods Sold. 
B) decreases Cost of Goods Sold. 
C) does not affect Cost of Goods Sold. 
D) increases liabilities.

Question 8

Mortgage Payable is an expense account.

Accepted Answer

A) True 
 B)False

Question 9

Rental Income is what type of account?

Accepted Answer

A) Asset 
B) Revenue 
C) Expense 
D) Liability 
A) Asset 
B) Revenue 
C) Expense 
D) Liability

Question 10

Unearned Rent is what type of account?

Accepted Answer

A) Asset 
B) Revenue 
C) Liability 
D) Expense 
A) Asset 
B) Revenue 
C) Liability 
D) Expense

Question 11

The first entry to adjust Merchandise Inventory includes:

Accepted Answer

A) a debit to Merchandise Inventory. 
B) a credit to Merchandise Inventory. 
C) a credit to Income Summary. 
D) None of these are correct. 
A) a debit to Merchandise Inventory. 
B) a credit to Merchandise Inventory. 
C) a credit to Income Summary. 
D) None of these are correct.

Question 12

Which of the following accounts is not a liability?

Accepted Answer

A) Accounts Payable 
B) Salaries Payable 
C) Unearned Rent 
D) All of the above answers are liabilities. 
A) Accounts Payable 
B) Salaries Payable 
C) Unearned Rent 
D) All of the above answers are liabilities.

Question 13

If $6,000 was the beginning inventory, purchases were $10,000 and sales were $7,000. How much was ending inventory last accounting period?

Accepted Answer

A) $9,000 
B) $6,000 
C) $0 
D) $3,000 
A) $9,000 
B) $6,000 
C) $0 
D) $3,000

Question 14

The amount for beginning inventory is needed when calculating Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 15

When counting supplies, several boxes were missed. This would cause:

Accepted Answer

A) Supplies to be overstated. 
B) Supplies Expense to be understated. 
C) Net Income to be overstated. 
D) All of the above are correct. 
A) Supplies to be overstated. 
B) Supplies Expense to be understated. 
C) Net Income to be overstated. 
D) All of the above are correct.

Question 16

The ending inventory in Year 1 is the beginning inventory in Year 2.

Accepted Answer

A) True 
 B)False

Question 17

Use the following information to complete the partial worksheet for Rebecca's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

Accepted Answer

The answer of Use the following information to complete the...

Question 18

Use the following information to complete the partial worksheet for Bill's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

Accepted Answer

The answer of Use the following information to complete the...

Question 19

In the perpetual inventory system, it is necessary to take a physical inventory at the end of the period.

Accepted Answer

A) True 
 B)False

Question 20

The physical count of inventory was incorrect, which overstated the ending inventory. This would cause:

Accepted Answer

A) Cost of Goods Sold to be overstated. 
B) Cost of Goods Sold to be understated. 
C) gross profit to be understated. 
D) net income to be understated. 
A) Cost of Goods Sold to be overstated. 
B) Cost of Goods Sold to be understated. 
C) gross profit to be understated. 
D) net income to be understated.

Exam 11: Preparing a Worksheet for a Merchandise Company

An account never used in an adjusting entry is:

Indicate the financial statement(s)on which you would find the following items: a)Cost of goods sold b)Freight-In c)Ending Inventory d)Beginning Inventory e)Sales Discount

The beginning inventory is adjusted by crediting Merchandise Inventory and debiting Income Summary.

The ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.

Mortgage Payable is found on the income statement.

When the adjustment is made for depreciation, both the Depreciation Expense account and Accumulated Depreciation account are increased.

Ending inventory:

Mortgage Payable is an expense account.

Rental Income is what type of account?

Unearned Rent is what type of account?

The first entry to adjust Merchandise Inventory includes:

Which of the following accounts is not a liability?

If $6,000 was the beginning inventory, purchases were $10,000 and sales were $7,000. How much was ending inventory last accounting period?

The amount for beginning inventory is needed when calculating Cost of Goods Sold.

When counting supplies, several boxes were missed. This would cause:

The ending inventory in Year 1 is the beginning inventory in Year 2.

Use the following information to complete the partial worksheet for Rebecca's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

Use the following information to complete the partial worksheet for Bill's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

In the perpetual inventory system, it is necessary to take a physical inventory at the end of the period.

The physical count of inventory was incorrect, which overstated the ending inventory. This would cause:

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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