Accounting Principles chapter 4 PDF

Preview

Summary

CHAPTER 4: COMPLETING THE ACCOUNTING CYCLE On May 25, Mt. Hood Company received a $370 check from Douglas Fir for services to be performed in the future. The bookkeeper for Mt. Wood Company incorrectly debited Cash for $370 and credited Accounts Receivable for $370. The amounts have been posted to t...

Description

CHAPTER 4: COMPLETING THE ACCOUNTING CYCLE 1. On May 25, Mt. Hood Company received a $370 check from Douglas Fir for services to be performed in the future. The bookkeeper for Mt. Wood Company incorrectly debited Cash for $370 and credited Accounts Receivable for $370. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should: Select one: a. Debit Accounts Receivable $370 and credit Unearned Service Revenue $370. Debit Accounts Receivable $370 and credit Service Revenue $370. c. Debit Cash $370 and credit Unearned Service Revenue $370. d. Debit Accounts Receivable $370 and credit Cash $370. The correct answer is: Debit Accounts Receivable $370 and credit Unearned Service Revenue $370. Question 2 Incorrect Mark 0.00 out of 1.00 Flag question

Question text Intangible assets include each of the following except: Select one: a. Land improvements. b. Goodwill. c. Copyrights. d. Patents.

Feedback The correct answer is: Land improvements. Question 3 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)T HE ENTRY TO CLOSE THE EXPENSE ACCOUNTS INCLUDES A Select one: a. Debit to Income Summary for $79,500. b.

Credit to Income Summary for $6,500. c. Debit to Utilities Expense for $3,500. d. Debit to Income Summary for $6,500.

Feedback The correct answer is: Debit to Income Summary for $79,500. Question 4 Correct Mark 1.00 out of 1.00 Flag question

Question text Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet? Select one: a. Income statement columns b. Adjusted trial balance columns c. Trial balance columns d. Adjustments columns

Feedback The correct answer is: Income statement columns Question 5 Correct Mark 1.00 out of 1.00 Flag question

Question text Bonita Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $45,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $23,000 had been accrued at year end on December 31. The correcting entry is Select one: a. Dr Salaries and Wages paybale, 23,000/ Cr Salaries and Wages Expense, 23,000 b. Dr Salaries and Wages paybale, 23,000/ Cr Cash, 23,000 c. Dr Cash, 22,000/ Cr Salaries and Wages Expense 22,000 d. Dr Cash, 23,000/ Cr Salaries and Wages Expense 23,000

Feedback The correct answer is: Dr Salaries and Wages paybale, 23,000/ Cr Salaries and Wages Expense, 23,000 Question 6

Correct Mark 1.00 out of 1.00 Flag question

Question text Truffles Company paid $860 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $680 and a credit to Accounts Receivable, $680. The correcting entry is Select one: a. Dr Accounts Receivable, 680/ Cr Cash 680 b. Dr Accounts Receivable, 680/ Cr Accounts paybale, 680 c. Dr Accounts paybale, 860/ Cr Cash, 860 d. Dr Accounts Receivable, 680, Dr Accounts paybale, 860/ Cr Cash 1,540

Feedback The correct answer is: Dr Accounts Receivable, 680, Dr Accounts paybale, 860/ Cr Cash 1,540 Question 7 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)AF TER ALL CLOSING ENTRIES HAVE BEEN POSTED, THE INCOME SUMMARY ACCOUNT WILL HAVE A BALANCE OF Select one: a. $79,500 credit. b. $6,500 credit. c. $6,500 debit. d. $0.

Feedback The correct answer is: $0. Question 8 Correct Mark 1.00 out of 1.00 Flag question

Question text

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the: Select one: a. Adjustments columns of the worksheet. b. Post-closing trial balance. c. Adjusted trial balance. d. The general journal.

Feedback The correct answer is: Adjusted trial balance. Question 9 Correct Mark 1.00 out of 1.00 Flag question

Question text The account, Supplies, will appear in the following debit columns of the worksheet. Select one: a. Balance sheet b. All of these answer choices are correct c. Trial balance d. Adjusted trial balance

Feedback The correct answer is: All of these answer choices are correct Question 10 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insuarance Expense Total ExpenseNet income $3,0001,300700200100 $7,300 5,300$2,000AFTER THE REVENUE AND EXPENSE ACCOUNTS HAVE BEEN CLOSED, THE BALANCE IN INCOME SUMMARY WILL BE: Select one: a. Debit balance of $7,300.

b. Debit balance of $2,000. c. Credit balance of $2,000. d. Credit balance of $7,300

Feedback The correct answer is: Credit balance of $2,000. Question 11 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT AND BALANCE SHEET COLUMNS OF BEER AND NUTS COMPANY’S WORKSHEET REFLECT THE FOLLOWING TOTALS: INCOME STATEMENTBALANCE SHEET DR.CR.DR.CR.TOTALS$75,000$48,000$60,000$87,000TO ENTER THE NET INCOME (OR LOSS) FOR THE PERIOD INTO THE ABOVE WORKSHEET REQUIRES AN ENTRY TO THE: Select one: a. Income statement debit column and the income statement credit column. b. Income statement credit column and the balance sheet debit column. c. Balance sheet debit column and the balance sheet credit column. d. Income statement debit column and the balance sheet credit column.

Feedback The correct answer is: Income statement debit column and the income statement credit column. Question 12 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insuarance Expense Total ExpenseNet income $3,0001,300700200100 $7,300 5,300$2,000THE ENTRY TO CLOSE THE EXPENSE ACCOUNTS INCLUDES A: Select one: a. Debit to Income Summary for $2,000. b. Credit to Rent Expense for $1,300.

c. Debit to Salaries and Wages Expense for $3,000. d. Credit to Income Summary for $5,300.

Feedback The correct answer is: Credit to Rent Expense for $1,300. Question 13 Correct Mark 1.00 out of 1.00 Flag question

Question text A worksheet is a multiple column form that facilitates the: Select one: a. Analysis process b. Preparation of financial statements. c. Identification of events. d. Measurement process.

Feedback The correct answer is: Preparation of financial statements. Question 14 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)AT JANUARY 1, 2016, BUGATI REPORTED OWNER’S EQUITY OF $50,000. OWNER DRAWINGS FOR THE YEAR TOTALLED $13,000. AT DECEMBER 31, 2016, THE COMPANY WILL REPORT OWNER’S EQUITY OF Select one: a. $30,500. b. $37,000. c. $43,500. d. $19,500.

Feedback The correct answer is: $30,500.

Question 15 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insuarance Expense Total ExpenseNet income $3,0001,300700200100 $7,300 5,300$2,000AT JUNE 1, 2016, SNAP SHOT REPORTED OWNER’S EQUITY OF $36,000. THE COMPANY HAD NO OWNER DRAWINGS DURING JUNE. AT JUNE 30, 2016, THE COMPANY WILL REPORT OWNER’S EQUITY OF: Select one: a. $36,000. b. $43,300 c. $38,000. d. $30,700.

Feedback The correct answer is: $38,000. Question 16 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)T HE ENTRY TO CLOSE INCOME SUMMARY TO OWNER’S CAPITAL INCLUDES: Select one: a. Credit to Income Summary for $6,500. b. Debit to Revenue for $73,000. c. Credits to Expenses totalling $79,500. d. Credit to Owner’s Capital for $6,500.

Feedback The correct answer is: Credit to Income Summary for $6,500. Question 17

Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)AF TER THE REVENUE AND EXPENSE ACCOUNTS HAVE BEEN CLOSED, THE BALANCE IN INCOME SUMMARY WILL BE Select one: a. a credit balance of $6,500. b. a debit balance of $6,500. c. $0. d. a credit balance of $73,000.

Feedback The correct answer is: a debit balance of $6,500. Question 18 Correct Mark 1.00 out of 1.00 Flag question

Question text If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has: Select one: a. Suffered a net loss for the period. b. To make an adjusting entry. c. Earned net income for the period. d. An error because debits do not equal credits.

Feedback The correct answer is: Suffered a net loss for the period. Question 19 Correct Mark 1.00 out of 1.00 Flag question

Question text The correct order of presentation in a classsified balance sheet for the following current assets is: Select one:

a. Cash, accounts receivable, inventory, prepaid insurance b. Inventory, cash, accounts receivable, prepaid insurance c. Cash, inventory, accounts receivable, prepaid insurance d. Accounts receivable, cash, prepaid insurance, inventory

Feedback The correct answer is: Cash, accounts receivable, inventory, prepaid insurance Question 20 Correct Mark 1.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)T HE ENTRY TO CLOSE THE REVENUE ACCOUNT INCLUDES A: Select one: a. Credit to Income Summary for $6,500. b. Debit to Income Summary for $6,500. c. Debit to Revenues for $73,000. d. Credit to Revenues for $73,000.

Feedback The correct answer is: Debit to Revenues for $73,000. Question 21 Incorrect Mark 0.00 out of 1.00 Flag question

Question text Net income in shown on a worksheet in the: Select one: a. Balance sheet debit column olny b. Income statement debit column only c. Income statement credit column and balance sheet debit column. d. Income statement debit column and balance sheet credit column.

Feedback The correct answer is: Income statement debit column and balance sheet credit column. Question 22 Correct Mark 1.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT AND BALANCE SHEET COLUMNS OF BEER AND NUTS COMPANY’S WORKSHEET REFLECT THE FOLLOWING TOTALS: INCOME STATEMENTBALANCE SHEET DR.CR.DR.CR.TOTALS$75,000$51,000$60,000$84,000THE NET INCOME (OR LOSS) FOR THE PERIOD IS: Select one: a. Not determinable b. $51,000 income c. $24,000 income d. $24,000 loss

Feedback The correct answer is: $24,000 loss Question 23 Correct Mark 1.00 out of 1.00 Flag question

Question text When using a worksheet, adjusting entries are journalized Select one: a. Before the adjustments are entered on to the worksheet. b. Before the adjusted trial balance is extended to the proper financial statement columns. c. After the worksheet is completed and after financial statements have been prepared. d. After the worksheet is completed and before financial statements are prepared.

Feedback The correct answer is: After the worksheet is completed and after financial statements have been prepared. Question 24 Correct Mark 1.00 out of 1.00 Flag question

Question text Patents and copyrights are: Select one: a. Property, plant, and equipment. b. Intangible assets c. Long term investments d. Current assets

Feedback The correct answer is: Intangible assets Question 25 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Utilitites Expense Insuarance Expense Total ExpenseNet income $43,00012,00011,0006,0003,5004,000 $73,000 79,500$(6,500)AF TER ALL CLOSING ENTRIES HAVE BEEN POSTED, THE REVENUE ACCOUNT WILL HAVE A BALANCE OF Select one: a. $0. b. $6,500 credit. c. $73,000 credit. d. $73,000 debit.

Feedback The correct answer is: $0. Question 26 Correct Mark 1.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insuarance Expense Total ExpenseNet income $3,0001,300700200100 $7,300 5,300$2,000THE ENTRY TO CLOSE THE REVENUE ACCOUNT INCLUDES A:

Select one: a. Credit to Income Summary for $2,000. b. Debit to Income Summary for $2,000. c. Debit to Income Summary for $7,300. d. Credit to Income Summary for $7,300.

Feedback The correct answer is: Debit to Income Summary for $7,300. Question 27 Incorrect Mark 0.00 out of 1.00 Flag question

Question text THE INCOME STATEMENT FOR THE MONTH OF JUNE, 2016 OF SNAP SHOT, INC. CONTAINS THE FOLLOWING INFORMATION:RevenueExpenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insuarance Expense Total ExpenseNet income $3,0001,300700200100 $7,300 5,300$2,000THE ENTRY TO CLOSE INCOME SUMMARY TO OWNER’S, CAPITAL INCLUDES: Select one: a. Credit to Income Summary for $2,000 b. Credit to Owner’s Capital for $2,000. c. Credits to Expenses totalling $5,300. d. Debit to Revenues for $7,300.

Feedback The correct answer is: Credit to Owner’s Capital for $2,000. Question 28 Incorrect Mark 0.00 out of 1.00 Flag question

Question text A lawyer collected $520 of legal fees in advance. He erroneously debited Cash for $250 and credited Accounts Receivable for $250. The correcting entry is Select one: a. Dr Cash, 520/ Cr Service Revenue, 520 b. Dr Cash, 270/ Cr Accounts Receivable, 270 c. Dr Cash, 270, Dr Accounts Receivable, 250/ Cr Unearned Revenue, 520

d. Dr Cash, 250, Dr Accounts Receivable, 270/ Cr Unearned Service Revenue, 520

Feedback The correct answer is: Dr Cash, 270, Dr Accounts Receivable, 250/ Cr Unearned Revenue, 520 Question 29 Incorrect Mark 0.00 out of 1.00 Flag question

Question text Which of the following is not a long term liability: Select one: a. Current maturities of long term obligations b. Long term notes payable c. Bonds payble d. Mortgages paybale.

Feedback The correct answer is: Current maturities of long term obligations Question 30 Correct Mark 1.00 out of 1.00 Flag question

Question text Adjusting entries are prepared from Select one: a. Last year’s worksheet. b. Source documents. c. The general ledger. d. The adjustments columns of the worksheet.

Feedback The correct answer is: The adjustments columns of the worksheet....