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Home ► My courses ► BUS 1102 - AY2020-T2 ► Final Exam (Days 1 - 4) ► Review Quiz

Started on State Completed on Time taken Marks Grade

Correct Mark 1.00 out of 1.00

Saturday, 4 January 2020, 12:03 AM Finished Saturday, 4 January 2020, 12:05 AM 1 min 40 secs 15.00/15.00 10.00 out of 10.00 (100%)

The journal entry to record a particular business transaction includes a credit to the Cash account. This transaction is most likely also to include: Select one: a. Issuance of new capital stock. b. The purchase of an asset on account. c. Payment of an outstanding note payable. d. A credit to Accounts Receivable.

The realization principle indicates that revenue usually should be Correct

recognized and recorded in the accounting records:

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Select one: a. When goods are sold or services are rendered to the customers. b. When cash is collected from customers. c. At the end of the accounting period. d. Only when the revenue can be matched by an equal dollar amount of expenses.

The historical cost principle is used to: Correct Mark 1.00 out of 1.00

Select one: a. Aid management in controlling costs. b. Record transactions and events at fair market value. c. Record transactions and events at their original cost. d. Calculate cost of goods sold.

The manager of Belle Home Improvements purchased several cash Correct Mark 1.00 out of 1.00

registers for the business on June 10 but does not remember whether he paid cash for the full price or still owes a balance to the vendor. Where is the best place for the manager to get the information about this transaction? Select one: a. A trial balance prepared at the end of June. b. The general journal. c. A balance sheet prepared at the end of June. d. The ledger account for equipment.

Net income is best described as: Correct Mark 1.00 out of 1.00

Select one: a. Cash receipts less cash payments made during a given accounting period. b. Revenue earned during an accounting period, less expenses incurred during the period. c. The increase in total assets over a given accounting period. d. Revenue earned during an accounting period, less any cash payments made during the period.

Financial statements are prepared: Correct Mark 1.00 out of 1.00

Select one: a. Only for publicly owned business organizations. b. For corporations, but not for sole proprietorships or partnerships. c. For the benet of both business managers and persons outside of the business organization. d. In either monetary or nonmonetary terms, depending upon the need of the decision maker.

The accrual of interest on a note payable will Correct Mark 1.00 out of 1.00

Select one: a. Reduce total liabilities. b. Increase total liabilities. c. Have no eect upon total liabilities. d. Will have no eect upon the income statement but will aect the balance sheet.

An inventory pricing procedure in which the oldest costs incurred Correct

rarely have an eect on the ending inventory valuation is:

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Select one: a. FIFO (rst-in, rst-out) b. LIFO (last-in, rst-out) c. Retail d. Weighted-average

Which of the following would not be considered a user of nancial Correct

information?

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Select one: a. A large pension fund b. A real estate investor c. Company management d. All the above are considered interested in nancial information.

Gross prot is the dierence between: Correct Mark 1.00 out of 1.00

Select one: a. Net sales and the cost of goods sold. b. The cost of merchandise purchased and the cost of merchandise sold. c. Net sales and net income. d. Net sales and all expenses.

Merchandising companies that are small and do not use a perpetual Correct

inventory system may elect to use:

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Select one: a. A physical inventory system b. A periodic inventory system c. An inventory shrinkage method d. An inventory subsidiary ledger system.

Correct

Which of the following credit terms is the most advantageous to the purchaser of merchandise?

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Select one: a. 1/10, n/30. b. 5/10, n/60. c. 2/10, n/30. d. 5/10, n/20.

Correct

The Retained Earnings statement is based upon which of the following relationships?

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Select one: a. Retained Earnings – Net Income – Dividends b. Retained Earnings – Net Income + Dividends c. Retained Earnings + Net Income + Dividends d. Retained Earnings + Net Income – Dividends

Hefty Company wants to know the eect of dierent inventory Correct Mark 1.00 out of 1.00

methods on nancial statements. The information provided below relates to beginning inventory and purchases for the current year: January 2

Beginning Inventory 500 units at $3.00 per unit

April 7

Purchased

1,100 units at $3.20 per unit

June 30

Purchased

400 units at $4.00 per unit

December 7 Purchases

1,600 units at $4.40 per unit

Sales during the year were 2,700 units at $5.00. If Hefty used the rstin rst-out method, ending inventory would be: Select one: a. $2,780. b. $3,960. c. $9,700. d. $10,880.

Which of the following is not characteristic of nancial accounting? Correct Mark 1.00 out of 1.00

Select one: a. Information used in nancial statements is prepared in conformity with generally accepted accounting principles. b. The information is condential and is intended for use only by company management. c. The information is used in a wide variety of business decisions d. The information is developed according to well dened standards.

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