Question 1

Match the terms below with the correct definitions.
-The ability to convert assets quickly into cash

Accepted Answer

A)  Property and equipment
B)  Reversing entries
C)  Gross profit
D)  Current ratio
E)  Working capitalF) Net income or net lossG) Net salesH) Income from operationsI) Long-term liabilitiesJ) Liquidity J

Question 2

Net Sales is

Accepted Answer

A)   Sales + Sales Returns & Allowances - Sales Discounts
B)   Sales - Sales Returns & Allowances + Sales Discounts
C)   Sales - Sales Returns & Allowances - Sales Discounts
D)   Sales + Sales Returns & Allowances + Sales Discounts C

Question 3

Match between columns
                        Premises:  Unearned Fees
 Supplies
 Building
 Mortgage Payable (due in 5 years)
 Wages Payable
 Accounts Receivable
 Land
 Prepaid Insurance
 Current portion Mortgage Payable
 P. Adams, Capital

Accepted Answer

The Answer of Current Assets and Property and Equipment and is...

Question 4

The calculation of the cost of goods available for sale is not affected by the amount of the beginning merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 5

A decrease in Rent Expense results in a decrease in gross profit.

Accepted Answer

A) True 
 B)False

Question 6

What would be an appropriate account number for Unearned Revenues?

Accepted Answer

A)   12
B)   21
C)   32
D)   42

Question 7

Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE).
 ____Purchases Discounts
____Delivery Expense
____Depreciation Expense, Equipment
____Freight In
____Interest Income ____Sales Returns and Allowances
____Office Salary Expense
____Goods Available for Sale
____Cash Over and Short (credit balance)
____Sales Commissions Expense

Accepted Answer

The answer of Identify each of the following items relating...

Question 8

An increase in Rent Expense results in a decrease in gross profit.

Accepted Answer

A) True 
 B)False

Question 9

Current Assets consist of all of the following EXCEPT

Accepted Answer

A)   Cash
B)   Any asset sold or consumed in more than a year
C)   Accounts Receivable
D)   Merchandise Inventory

Question 10

The following accounts are from the Athletics Store worksheet dated March 31 of the current year:
The data needed for adjustments on March 31 are as follows:
 $\begin{array}{lr}
\text { Cash } & \$ 8,250 \
\text { Accounts Receivable } & 21,400 \
\text { Merchandise Inventory } & 48,700 \
\text { Store Supplies } & 3,106 \
\text { Prepaid Insurance } & 2,380 \
\text { Store Equipment } & 29,400\
\text { Accumulated Depreciation, Store Equipment } & 8,630 \
\text { Accounts Payable } & 16,350 \
\text { T. Phelps, Capital } & 157,900 \
\text { T. Phelps, Drawing } & 32,570 \
\text { Sales } & 203,842 \
\text { Sales Returns and Allowances } & 1,770\
\text { Purchases } & 146,910 \
\text { Purchases Returns and Allowances } & 3,527 \
\text { Purchase Discounts } & 2,615 \
\text { Freight In } & 6,947 \
\text { Wages Expense } & 28,400 \
\text { Advertising Expense } & 3,219 \
\text { Rent Expense } & 19,200
\end{array}$ Instructions: (Note: use t-accounts to assist in calculation the below items.)
 a-b. Merchandise Inventory, March $31 , \$ 46,250$.
c. Insurance expired for the year, $\$ 1,580$.
d. Depreciation for the year, $\$ 4,230$.
e. Accrued wages on January $31 , \$ 2,513$.
f. Supplies used during the year $\$ 950$. 
1.Journalize the adjusting entries.
2.Journalize the closing entries.
3.Journalize the reversing entries.

Accepted Answer

The answer of The following accounts are from the Athletics...

Question 11

Working capital is equal to total assets minus current liabilities.

Accepted Answer

A) True 
 B)False

Question 12

An example of Other Income for a firm other than a bank or real estate office is

Accepted Answer

A)   Rent Income.
B)   Interest Income.
C)   Gain on Disposal of Property and Equipment.
D)   all of these.
E)   none of these.

Question 13

The profit on merchandise sold after expenses is

Accepted Answer

A)   Gross Sales
B)   Gross Profit
C)   Net Sales
D)   Net Income

Question 14

Match the terms below with the correct definitions.
-Sales minus the sum of sales returns and allowances and sales discounts

Accepted Answer

A)  Property and equipment
B)  Reversing entries
C)  Gross profit
D)  Current ratio
E)  Working capitalF) Net income or net lossG) Net salesH) Income from operationsI) Long-term liabilitiesJ) Liquidity

Question 15

Land would appear on the balance sheet as

Accepted Answer

A)   a current asset.
B)   a current liability.
C)   part of property and equipment.
D)   a long-term liability.
E)   either a current asset or a current liability.

Question 16

Working Capital =

Accepted Answer

A)   Current Assets - Long-Term Liabilities
B)   Current Assets - Current Liabilities
C)   Long Term Assets - Long Term Liabilities
D)   Total Assets - Total Liabilities

Question 17

Debts that are due and payable in less than a year

Accepted Answer

A)   Wages Payable
B)   Mortgage Payable
C)   Long-Term Liabilities
D)   All of the above

Question 18

On the income statement, the ending merchandise inventory is deducted from the cost of goods available for sale to yield income from operations.

Accepted Answer

A) True 
 B)False

Question 19

Cost of Goods Sold is an operating expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 20

Income from Operations is Gross Profit minus Operating Expenses.

Accepted Answer

A) True 
 B)False

Exam 12: Financial Statements, Closing Entries, and Reversing Entries

Match the terms below with the correct definitions. -The ability to convert assets quickly into cash

Net Sales is

Identify each of the following items relating to sections of a balance sheet as:

The calculation of the cost of goods available for sale is not affected by the amount of the beginning merchandise inventory.

A decrease in Rent Expense results in a decrease in gross profit.

What would be an appropriate account number for Unearned Revenues?

An increase in Rent Expense results in a decrease in gross profit.

Current Assets consist of all of the following EXCEPT

Working capital is equal to total assets minus current liabilities.

An example of Other Income for a firm other than a bank or real estate office is

The profit on merchandise sold after expenses is

Match the terms below with the correct definitions. -Sales minus the sum of sales returns and allowances and sales discounts

Land would appear on the balance sheet as

Working Capital =

Debts that are due and payable in less than a year

On the income statement, the ending merchandise inventory is deducted from the cost of goods available for sale to yield income from operations.

Cost of Goods Sold is an operating expense on the income statement.

Income from Operations is Gross Profit minus Operating Expenses.