Please let me know how soon you can have this back to me if you are requesting to shake hands.<\/p>\n
I need this back within 1 hour and 30 minutes it is timed. Respond quickly. Needs to be a perfect 100!<\/p>\n
1. <\/b>How does the purchase of supplies on account affect the accounting equation? (Points : 3)<\/p>\n
assets increase; owner’s equity decreases<\/p>\n
assets increase; liabilities increase<\/p>\n
assets increase; liabilities decrease<\/p>\n
liabilities increase; owner’s equity decreases<\/p>\n
2. <\/b>Which of the following is not a true statement about the accounting equation and its elements? (Points : 3)<\/p>\n
The accounting equation is Assets = Liabilities – Owners’ Equity.<\/p>\n
Assets are the resources a business possesses.<\/p>\n
Liabilities represent debts of a business.<\/p>\n
Examples of assets are cash, land, buildings, and equipment.<\/p>\n
Owners’ equity are the rights of the owners.<\/p>\n
3. <\/b>For accounting purposes, the business entity should be considered separate from its owners if the entity is (Points : 3)<\/p>\n
a corporation<\/p>\n
a proprietorship<\/p>\n
a partnership<\/p>\n
all of the above<\/p>\n
4. <\/b>Which of the following are guidelines for behaving ethically? I. Identify the consequences of a decision and its effect on others. II. Consider your obligations and responsibilities to those affected by the decision. III. Identify your decision based on personal standards of honesty and fairness. (Points : 3)<\/p>\n
I and II.<\/p>\n
II and III.<\/p>\n
I and III.<\/p>\n
I, II, and III.<\/p>\n
5. <\/b>The payment for the monthly rent will require the following entry (Points : 3)<\/p>\n
Debit Cash and Debit Rent Expense<\/p>\n
Credit Cash and Credit Rent Expense<\/p>\n
Debit Rent Expense and Credit Cash<\/p>\n
Credit Rent Expense and Debit Cash<\/p>\n
6. <\/b>Randomly listed below are the steps for preparing a trial balance: (1.) Verify that the total of the Debit column equals the total of the Credit column. (2.) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance. (3.) List the name of the company, the title of the trial balance, and the date the trial balance is prepared. (4.) Total the Debit and Credit columns of the trial balance. (Points : 3)<\/p>\n
(3), (2), (4), (1)<\/p>\n
(2), (3), (4), (1)<\/p>\n
(3), (2), (1), (4)<\/p>\n
(4), (3), (2), (1)<\/p>\n
7. <\/b>Prairie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be (Points : 3)<\/p>\n
Equipment<\/p>\n
1,275<\/p>\n
Cash<\/p>\n
1,275<\/p>\n
Cash<\/p>\n
1,275<\/p>\n
Accounts Payable<\/p>\n
2,725<\/p>\n
Equipment<\/p>\n
4,000<\/p>\n
Equipment Expense<\/p>\n
4,000<\/p>\n
Accounts Payable<\/p>\n
1,275<\/p>\n
Cash<\/p>\n
2,725<\/p>\n
Equipment<\/p>\n
4,000<\/p>\n
Accounts Payable<\/p>\n
2,725<\/p>\n
Cash<\/p>\n
1,275<\/p>\n
8. <\/b>A credit balance in which of the following accounts would indicate a likely error? (Points : 3)<\/p>\n
Fees Earned<\/p>\n
Salary Expense<\/p>\n
Janet James, Capital<\/p>\n
Accounts Payable<\/p>\n
9. <\/b>Which of the following is not a characteristic of accrual basis of accounting? (Points : 3)<\/p>\n
Revenues and expenses are reported in the period in which cash is received or paid<\/p>\n
Revenues are reported in the income statement in the period in which they are earned<\/p>\n
Supports the matching concept<\/p>\n
All are correct.<\/p>\n
10. <\/b>The net income reported on the income statement is $85,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $800. Net income, as corrected, is (Points : 3)<\/p>\n
$84,200<\/p>\n
$85,000<\/p>\n
$82,800<\/p>\n
$82,000<\/p>\n
11. <\/b>The matching concept (Points : 3)<\/p>\n
addresses the relationship between the journal and the balance sheet<\/p>\n
determines whether the normal balance of an account is a debit or credit<\/p>\n
requires that the dollar amount of debits equal the dollar amount of credits on a trial balance<\/p>\n
determines that expenses related to revenue be reported at the same time the revenue is reported<\/p>\n
12. <\/b>The entry to adjust for the cost of supplies used during the accounting period is (Points : 3)<\/p>\n
Supplies Expense, debit; Supplies, credit<\/p>\n
James Smith, Capital, debit; Supplies, credit<\/p>\n
Accounts Payable, debit; Supplies, credit<\/p>\n
Supplies, debit; credit James Smith, Capital<\/p>\n
13. <\/b>Which of the accounts below would be closed by posting a debit to the account? (Points : 3)<\/p>\n
Unearned Revenue<\/p>\n
Fees Earned<\/p>\n
Josh Morton, Drawing<\/p>\n
Rent Expense<\/p>\n
14. <\/b>What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance? (Points : 3)<\/p>\n
The Adjusted Trial Balance will show the net income (loss) as an additional account.<\/p>\n
Both will need to be in balance in order to continue with the end-of-period processing<\/p>\n
The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts.<\/p>\n
The Unadjusted Trial Balance will be used to record the adjustments for the period.<\/p>\n
15. <\/b>The Statement of Owner’s Equity should be prepared (Points : 3)<\/p>\n
before the income statement and after the balance sheet<\/p>\n
before the income statement and balance sheet<\/p>\n
after the income statement and balanace sheet<\/p>\n
after the income statement and before the balance sheet<\/p>\n
16. <\/b>A summary of selected ledger accounts appear below for Alberto’s Plumbing Services for the 2009 calendar year end. <\/p>\n
Alberto, Capital <\/p>\n
31-Dec DEBIT 8,500<\/p>\n
1-Jan CREDIT 6,500<\/p>\n
31-Dec CREDIT 18,500<\/p>\n
Alberto, Drawing<\/p>\n
30-Jun DEBIT 3,500<\/p>\n
31-Dec CREDIT 8,500<\/p>\n
30-Nov DEBIT 5,000<\/p>\n
Income Summary<\/p>\n
31-Dec DEBIT 15,000<\/p>\n
31-Dec CREDIT 33,500<\/p>\n
31-Dec DEBIT 18,500<\/p>\n
Net income for the period is (Points : 3)<\/p>\n
$16,500<\/p>\n
$33,500<\/p>\n
$18,500<\/p>\n
$15,000<\/p>\n
17. <\/b>After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $85,300, respectively. What is the amount of the net income or net loss for the period? (Points : 3)<\/p>\n
$7,800 net income<\/p>\n
$7,800 net loss<\/p>\n
$85,300 net income<\/p>\n
$77,500 net loss<\/p>\n
18. <\/b>The following are steps to the accounting cycle. Of the following, which step should be done first? (Points : 3)<\/p>\n
Closing entries are journalized and posted to the ledger.<\/p>\n
Transactions are posted to the ledger.<\/p>\n
Adjusting entries are journalized and posted to the ledger.<\/p>\n
Financial statements are prepared.<\/p>\n
19. <\/b>A work sheet includes columns for (Points : 3)<\/p>\n
adjusting entries<\/p>\n
closing entries<\/p>\n
reversing entries<\/p>\n
adjusting and closing entries<\/p>\n
20. <\/b>Net income appears on the work sheet in the (Points : 3)<\/p>\n
debit column of the Balance Sheet columns<\/p>\n
debit column of the Adjustments columns<\/p>\n
debit column of the Income Statement columns<\/p>\n
credit column of the Income Statement columns<\/p>\n
21. <\/b>A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is (Points : 3)<\/p>\n
$970<\/p>\n
$650<\/p>\n
$300<\/p>\n
$620<\/p>\n
22. <\/b>When merchandise is returned under the perpetual inventory system, the buyer would credit (Points : 3)<\/p>\n
Merchandise Inventory<\/p>\n
Purchases Returns and Allowances<\/p>\n
Accounts Payable<\/p>\n
depending on the inventory system used.<\/p>\n
23. <\/b>Multiple-step income statements show (Points : 3)<\/p>\n
gross profit but not income from operations<\/p>\n
neither gross profit nor income from operations<\/p>\n
both gross profit and income from operations<\/p>\n
income from operations but not gross profit<\/p>\n
24. <\/b>The primary difference between a periodic and perpetual inventory system is that a (Points : 3)<\/p>\n
periodic system determines the inventory on hand only at the end of the accounting period<\/p>\n
periodic system keeps a record showing the inventory on hand at all times<\/p>\n
periodic system provides an easy means to determine inventory shrinkage<\/p>\n
periodic system records the cost of the sale on the date the sale is made<\/p>\n
25. <\/b>Beginning inventory, purchases and sales data for tennis rackets are as follows:<\/p>\n
Apr 3<\/p>\n
Inventory<\/p>\n
12 units<\/p>\n
@<\/p>\n
$45<\/p>\n
11<\/p>\n
Purchase<\/p>\n
13 units<\/p>\n
@<\/p>\n
$47<\/p>\n
14<\/p>\n
Sale<\/p>\n
18 units<\/p>\n
21<\/p>\n
Purchase<\/p>\n
9 units<\/p>\n
@<\/p>\n
$60<\/p>\n
25<\/p>\n
Sale<\/p>\n
10 units<\/p>\n
Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out: (Points : 3)<\/p>\n
cost of merchandise sold $1,151; ending inventory $180<\/p>\n
cost of merchandise sold $180; ending inventory $1,151<\/p>\n
cost of merchandise sold $1,331; ending inventory $360<\/p>\n
cost of merchandise sold $360; ending inventory $1,331<\/p>\n
26. <\/b>The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May.<\/p>\n
Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the FIFO inventory cost method. (Points : 3)<\/p>\n
$264<\/p>\n
$502<\/p>\n
$400<\/p>\n
$790<\/p>\n
27. <\/b>The inventory system employing accounting records that continuously disclose the amount of inventory is called (Points : 3)<\/p>\n
Retail<\/p>\n
Periodic<\/p>\n
Physical<\/p>\n
Perpetual<\/p>\n
28. <\/b>When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called (Points : 3)<\/p>\n
first-in, last-out<\/p>\n
last-in, first-out<\/p>\n
first-in, first-out<\/p>\n
average cost<\/p>\n
29. <\/b>The following lots of a particular commodity were available for sale during the year:<\/p>\n
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the average cost method? (Points : 3)<\/p>\n
$1,380<\/p>\n
$1,375<\/p>\n
$1,510<\/p>\n
$1,220<\/p>\n
30. <\/b>On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 by the retail method?<\/p>\n
(Points : 3)<\/p>\n
$250,000<\/p>\n
$360,000<\/p>\n
$172,500<\/p>\n
$187,500<\/p>\n
31. <\/b>Inventory turnover (Points : 3)<\/p>\n
is computed by dividing average inventory by cost of merchandise sold<\/p>\n
measures the relationship between the volume of goods sold and amount of inventory carried<\/p>\n
increases the risk of loss from damaged merchandise<\/p>\n
is computed by dividing the beginning inventory plus the ending inventory by two<\/p>\n
32. <\/b>Garrison Company uses the retail method of inventory costing. They started the year with an inventory that had a retail cost of $45,000. During the year they purchased an inventory with a retail cost of $300,000. After performing a physical inventory, they calculated their inventory at $80,000. The mark up is 100% of cost. Determine the ending inventory at its estimated cost. (Points : 3)<\/p>\n
$160,000<\/p>\n
$80,000<\/p>\n
$40,000<\/p>\n
33. <\/b>If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line? (Points : 3)<\/p>\n
No change to net income.<\/p>\n
Net income will be overstated<\/p>\n
Net income will be understated.<\/p>\n
Only gross profit will be affected.<\/p>\n
34. <\/b>Too much inventory on hand (Points : 3)<\/p>\n
reduces solvency<\/p>\n
increases the cost to safeguard the assets<\/p>\n
increases the losses due to price declines<\/p>\n
all of the above<\/p>\n
35. <\/b>Under a periodic inventory system (Points : 3)<\/p>\n
accounting records continuously disclose the amount of inventory<\/p>\n
a separate account for each type of merchandise is maintained in a subsidiary ledger<\/p>\n
a physical inventory is taken at the end of the period<\/p>\n
merchandise inventory is debited when goods are returned to vendors<\/p>\n","protected":false},"excerpt":{"rendered":"
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