Question 1

Young Corporation has Current Assets of $125,000, Current Liabilities of $50,000, Long-Term Liabilities of $25,000 and Total Assets of $300,000. What is the working capital of Young Corporation?

Accepted Answer

A) $75,000 
B) $150,000 
C) $425,000 
D) $500,000

Question 2

General journal entries that are the exact opposite of a previously completed adjusting entry are known as

Accepted Answer

A) Closing Entries 
B) General Adjustments 
C) Reversing Entries 
D) Fiscal Entries

Question 3

Assume Net Sales are $225,000, Cost of Goods Sold is $75,000, Selling Expenses are $24,000 and General Expenses are $30,000. Calculate Net Income:

Accepted Answer

A) $150,000 
B) $126,000 
C) $246,000 
D) $96,000

Question 4

The adjusting entry for supplies on hand is always reversed.

Accepted Answer

A) True 
 B)False

Question 5

A relatively long-lived asset that is held for use in the production or sale of other assets or services

Accepted Answer

A) Current Asset 
B) Note Receivable (Current) 
C) Accounts Receivable 
D) Property and Equipment

Question 6

Assuming Net Sales is $180,000, Cost of Goods Sold is $79,000, Selling Expenses are $28,500, and General Expenses are $22,800, then Gross Profit is

Accepted Answer

A) $27,700. 
B) $207,700. 
C) $101,000. 
D) $95,300. 
E) $72,500.

Question 7

Cost of goods available for sale is equal to

Accepted Answer

A) delivered cost of purchases minus Freight In. 
B) delivered cost of purchases plus Freight In. 
C) delivered cost of purchases plus beginning inventory. 
D) delivered cost of purchases minus beginning inventory. 
E) Freight In plus ending inventory.

Question 8

What two measures tell management and short-term creditors if the firm has sufficient capital and can pay its debts?

Accepted Answer

A) Working Capital Ratio 
B) Current Ratio 
C) Organizational Ratio 
D) A & B

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Assuming Net Sales is $180,000, Cost of Goods Sold is $79,000, Selling Expenses are $28,500, General Expenses are $22,800, and Interest Expense is $2,000, then Income from Operations is

Accepted Answer

A) $27,700. 
B) $49,700. 
C) $101,000. 
D) $95,300. 
E) $72,500.

Question 11

Sales plus Sales Returns and Allowances minus Sales Discounts equals Net Sales on the income statement.

Accepted Answer

A) True 
 B)False

Question 12

Match the terms below with the correct definitions.
 
-Long-lived assets

Accepted Answer

The answer of Match the terms below with the correct...

Question 13

What would be an appropriate account number for Cash?

Accepted Answer

A) 11 
B) 21 
C) 31 
D) 41

Question 14

Match the terms below with the correct definitions.
 
-The firm's excess of its current assets over its current liabilities

Accepted Answer

The answer of Match the terms below with the correct...

Question 15

What are reversing entries? Which adjusting entries can be reversed?

Accepted Answer

The answer of What are reversing entries? Which adjusting entries...

Question 16

Which of the following accounts is debited in the closing entries?

Accepted Answer

A) Sales 
B) Unearned Subscriptions 
C) Sales Returns and Allowances 
D) Sales Discounts 
E) Insurance Expense

Question 17

The Purchases account is not classified as a selling expense.

Accepted Answer

A) True 
 B)False

Question 18

Long-Term Liabilities are usually listed in the order of their expected payment.

Accepted Answer

A) True 
 B)False

Question 19

Net Sales is Sales minus Sales Returns and Allowances plus Sales Discounts.

Accepted Answer

A) True 
 B)False

Question 20

Net purchases is equal to

Accepted Answer

A) Purchases minus Purchases Returns and Allowances plus Purchases Discounts. 
B) Purchases plus Purchases Returns and Allowances plus Purchases Discounts. 
C) Purchases minus Purchases Returns and Allowances minus Purchases Discounts. 
D) Purchases plus Freight In minus Purchases Discounts. 
E) Purchases minus Freight In plus Purchases Returns and Allowances.

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

Young Corporation has Current Assets of $125,000, Current Liabilities of $50,000, Long-Term Liabilities of $25,000 and Total Assets of $300,000. What is the working capital of Young Corporation?

General journal entries that are the exact opposite of a previously completed adjusting entry are known as

Assume Net Sales are $225,000, Cost of Goods Sold is $75,000, Selling Expenses are $24,000 and General Expenses are $30,000. Calculate Net Income:

The adjusting entry for supplies on hand is always reversed.

A relatively long-lived asset that is held for use in the production or sale of other assets or services

Assuming Net Sales is $180,000, Cost of Goods Sold is $79,000, Selling Expenses are $28,500, and General Expenses are $22,800, then Gross Profit is

Cost of goods available for sale is equal to

What two measures tell management and short-term creditors if the firm has sufficient capital and can pay its debts?

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

Assuming Net Sales is $180,000, Cost of Goods Sold is $79,000, Selling Expenses are $28,500, General Expenses are $22,800, and Interest Expense is $2,000, then Income from Operations is

Sales plus Sales Returns and Allowances minus Sales Discounts equals Net Sales on the income statement.

Match the terms below with the correct definitions. -Long-lived assets

What would be an appropriate account number for Cash?

Match the terms below with the correct definitions. -The firm's excess of its current assets over its current liabilities

What are reversing entries? Which adjusting entries can be reversed?

Which of the following accounts is debited in the closing entries?

The Purchases account is not classified as a selling expense.

Long-Term Liabilities are usually listed in the order of their expected payment.

Net Sales is Sales minus Sales Returns and Allowances plus Sales Discounts.

Net purchases is equal to