Question 1

The balance of the owner's drawing account is

Accepted Answer

A)  listed in the Other Expenses section of the income statement. 
B)  listed in the Current Assets section of the balance sheet. 
C)  used in the calculation of ending capital on a statement of owner's equity. 
D)  listed in the Operating Expenses section of the income statement. 
A)  listed in the Other Expenses section of the income statement. 
B)  listed in the Current Assets section of the balance sheet. 
C)  used in the calculation of ending capital on a statement of owner's equity. 
D)  listed in the Operating Expenses section of the income statement. C

Question 2

The adjusting entry to record depreciation should be reversed at the start of a new fiscal period to make subsequent financial record keeping easier.

Accepted Answer

A) True 
 B)False  False

Question 3

The owner of a firm had capital of $85,000 on January 1, 2013, and made withdrawals of $33,000 during 2013. The business earned a net income of $45,000 for the year.
1. What amount of capital was shown as of December 31, 2013, on the statement of owner's equity?
2. How much was the increase or decrease in capital for the year?

Accepted Answer

1. $97,000; 2. $12,000 increase

Question 4

The beginning capital balance shown on a statement of owner's equity is $86,000. Net income for the period is $36,000. The owner withdrew $44,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

Accepted Answer

A)  $78,000. 
B)  $94,000. 
C)  $122,000. 
D)  $166,000. 
A)  $78,000. 
B)  $94,000. 
C)  $122,000. 
D)  $166,000.

Question 5

After the ____________________ entries are posted, the Sales account will have a zero balance.

Accepted Answer

The answer of After the ____________________ entries are posted, the...

Question 6

The inventory ____________________ represents the time period it takes from the purchase of the inventory until it is sold.

Accepted Answer

The answer of The inventory ____________________ represents the time period...

Question 7

The entry to reverse the adjustment for accrued interest income consists of a debit to

Accepted Answer

A)  Interest Income and a credit to Income Summary. 
B)  Interest Income and a credit to Interest Receivable. 
C)  Interest Income and a credit to Interest Expense. 
D)  Interest Receivable and a credit to Interest Income. 
A)  Interest Income and a credit to Income Summary. 
B)  Interest Income and a credit to Interest Receivable. 
C)  Interest Income and a credit to Interest Expense. 
D)  Interest Receivable and a credit to Interest Income.

Question 8

Brianna Graham is the owner of a dress shop. The firm had a net loss of $9,000 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

Accepted Answer

Debit Brianna Graham

Question 9

The entry to reverse the adjusting entry for accrued payroll taxes expense includes

Accepted Answer

A)  a debit to Payroll Taxes Expense. 
B)  a debit to Employee Income Tax Payable. 
C)  a credit to Social Security Tax Payable and a credit to Medicare Tax Payable. 
D)  a debit to Social Security Tax Payable and a debit to Medicare Tax Payable. 
A)  a debit to Payroll Taxes Expense. 
B)  a debit to Employee Income Tax Payable. 
C)  a credit to Social Security Tax Payable and a credit to Medicare Tax Payable. 
D)  a debit to Social Security Tax Payable and a debit to Medicare Tax Payable.

Question 10

The statement of owner's equity is prepared before the balance sheet so that the beginning owner's equity balance is available for the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Cost of Goods Sold is classified as a(n)

Accepted Answer

A)  Revenue account 
B)  Asset account 
C)  Expense account 
D)  Owner's Equity account 
A)  Revenue account 
B)  Asset account 
C)  Expense account 
D)  Owner's Equity account

Question 12

The current ratio is calculated by

Accepted Answer

A)  dividing current assets by current liabilities. 
B)  dividing current liabilities by current assets. 
C)  dividing total assets by total current assets. 
D)  dividing current assets by total assets. 
A)  dividing current assets by current liabilities. 
B)  dividing current liabilities by current assets. 
C)  dividing total assets by total current assets. 
D)  dividing current assets by total assets.

Question 13

The difference between net sales and the cost of goods sold is called the ____________________ on sales.

Accepted Answer

The answer of The difference between net sales and the...

Question 14

For the current fiscal year, Purchases were $245,000, Purchase Returns and Allowances were $8,600, Purchase Discounts were $2,200 and Freight In was $32,000. If the beginning merchandise inventory was $60,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:

Accepted Answer

A)  $266,200 
B)  $281,200 
C)  $272,800 
D)  $251,200 
A)  $266,200 
B)  $281,200 
C)  $272,800 
D)  $251,200

Question 15

At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 16

Match the accounting terms with the description by entering the proper number.

Accepted Answer

The answer of Match the accounting terms with the description...

Question 17

A. Check all of the following accounts that would be classified as a current asset.
 $$\begin{array} { | l | l | } 
\hline \text { Store Equipment } & \
\hline \text { Cash } & \
\hline \text { Land } & \
\hline \text { Petty Cash } & \
\hline \text { Interest Receivable } & \
\hline \text { Accounts Receivable } & \
\hline \text { Building } & \
\hline \text { Merchandise Inventory } & \
\hline \text { Office Equipment } & \
\hline \text { Notes Receivable } & \
\hline
\end{array}$$ 
B. Check all of the following accounts that would be classified as a current liability.

Accepted Answer

The answer of A. Check all of the following accounts...

Question 18

Which of the following accounts will appear on the postclosing trial balance?

Accepted Answer

A)  Capital 
B)  Depreciation Expense 
C)  Sales 
D)  Payroll Tax Expense 
A)  Capital 
B)  Depreciation Expense 
C)  Sales 
D)  Payroll Tax Expense

Question 19

Which of the following groups of accounts will have zero balances after the closing process is completed?

Accepted Answer

A)  Allowance for Doubtful Accounts and Uncollectible Accounts Expense 
B)  Purchases and Purchases Returns and Allowances 
C)  Merchandise Inventory and Sales 
D)  Depreciation Expense and Accumulated Depreciation-Equipment 
A)  Allowance for Doubtful Accounts and Uncollectible Accounts Expense 
B)  Purchases and Purchases Returns and Allowances 
C)  Merchandise Inventory and Sales 
D)  Depreciation Expense and Accumulated Depreciation-Equipment

Question 20

A firm had merchandise inventory of $30,000 on January 1, 2013, and had purchases of $45,000, freight in of $600, purchases returns and allowances of $2,300, and purchases discounts of $1,000 during 2013. The firm had merchandise inventory of $27,000 on December 31, 2013.
1. What net delivered cost of purchases was shown for the year ended December 31, 2013, on the classified income statement?
2. What was the cost of goods sold?

Accepted Answer

1. $42,300

The balance of the owner's drawing account is

The adjusting entry to record depreciation should be reversed at the start of a new fiscal period to make subsequent financial record keeping easier.

The beginning capital balance shown on a statement of owner's equity is $86,000. Net income for the period is $36,000. The owner withdrew $44,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

After the ____________________ entries are posted, the Sales account will have a zero balance.

The inventory ____________________ represents the time period it takes from the purchase of the inventory until it is sold.

The entry to reverse the adjustment for accrued interest income consists of a debit to

Brianna Graham is the owner of a dress shop. The firm had a net loss of $9,000 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

The entry to reverse the adjusting entry for accrued payroll taxes expense includes

The statement of owner's equity is prepared before the balance sheet so that the beginning owner's equity balance is available for the balance sheet.

Cost of Goods Sold is classified as a(n)

The current ratio is calculated by

The difference between net sales and the cost of goods sold is called the ____________________ on sales.

For the current fiscal year, Purchases were $245,000, Purchase Returns and Allowances were $8,600, Purchase Discounts were $2,200 and Freight In was $32,000. If the beginning merchandise inventory was $60,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:

At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.

Match the accounting terms with the description by entering the proper number.

Which of the following accounts will appear on the postclosing trial balance?

Which of the following groups of accounts will have zero balances after the closing process is completed?

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters

Exam 13: Financial Statements and Closing Procedures

The balance of the owner's drawing account is

The adjusting entry to record depreciation should be reversed at the start of a new fiscal period to make subsequent financial record keeping easier.

The beginning capital balance shown on a statement of owner's equity is $86,000. Net income for the period is $36,000. The owner withdrew $44,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

After the ____________________ entries are posted, the Sales account will have a zero balance.

The inventory ____________________ represents the time period it takes from the purchase of the inventory until it is sold.

The entry to reverse the adjustment for accrued interest income consists of a debit to

Brianna Graham is the owner of a dress shop. The firm had a net loss of $9,000 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

The entry to reverse the adjusting entry for accrued payroll taxes expense includes

The statement of owner's equity is prepared before the balance sheet so that the beginning owner's equity balance is available for the balance sheet.

Cost of Goods Sold is classified as a(n)

The current ratio is calculated by

The difference between net sales and the cost of goods sold is called the ____________________ on sales.

For the current fiscal year, Purchases were $245,000, Purchase Returns and Allowances were $8,600, Purchase Discounts were $2,200 and Freight In was $32,000. If the beginning merchandise inventory was $60,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:

At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.

Match the accounting terms with the description by entering the proper number.

Which of the following accounts will appear on the postclosing trial balance?

Which of the following groups of accounts will have zero balances after the closing process is completed?

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters