Câu hỏi In recording the cost of merchandise sold based on data available from perpetual inventory records, the journal entry is a Select one: a debit to Merchandise Inventory and a credit to Cost of Merchandise Sold b debit to Accounts Receivable and a credit to Merchandise Inventory c debit to Cost of Merchandise Sold and a credit to Sales d debit to Cost of Merchandise Sold and a credit to Merchandise Inventory Câu hỏi Which one of the following adjustments decreases net income for the period? Select one: a Recognition of services that had been provided to customers but the cash has not yet been received b Recognition of interest on a note receivable c Recognition of depreciation on plant assets d Recognition of rent as earned that had been received in advance from customers Câu hỏi At the end of the fiscal year, the usual adjusting entry to recognize accrued revenues was omitted Which of the following is true? Select one: a the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year b total assets will be understated at the end of the current year c total liabilities will be understated d net income will be overstated for the current year Câu hỏi Based on its income for the month, Reel Company estimates that federal income taxes for the month of May will be $11,000 What is the effect of the adjustment on the financial statements? Select one: a Increase net income b Decrease income taxes payable c Increase retained earnings d Increase income taxes expense Câu hỏi Inventory shrinkage is journalized when Select one: a there is a difference between the physical count of inventory and the perpetual inventory records b merchandise is returned by a buyer c merchandise purchased from a seller is incomplete or short d merchandise is returned to a seller Câu hỏi Blanton Company bought equipment on January 1, 2013, with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years It was depreciated by the straight-line method for four years Due to obsolescence, it was determined at the beginning of 2017 that the useful life should be shortened by three years and the residual value changed to zero What is the accumulated depreciation at the end of 2016? Select one: a $42,667 b $40,000 c $8,000 d $32,000 Câu hỏi Remaz Corp purchased equipment at a cost of $220,000 in January, 2016 As of January 1, 2017, depreciation of $160,000 had been recorded on this asset Depreciation expense for 2017 is $50,000 After the adjustments are recorded and posted at December 31, 2017, what are the balances for Equipment and Accumulated Depreciation? Equipment Select one: Accumulated Depreciation a $220,000 $0 b $220,000 $210,000 c $160,000 $ 50,000 d $120,000 $210,000 Câu hỏi Capitalizing an expenditure rather than recording it as a revenue expenditure Select one: a affects the total book value of plant assets on the balance sheet, but has no effect on the amount of net income reported during an accounting period b affects the total book value of plant assets reported on the balance sheet and the amount of net income reported during a period c has no effect on the book value of plant assets on the balance sheet or the amount of income reported on the income statement d affects the amount of net income reported during an accounting period, but has no effect on the total book value of plant assets on the balance sheet Câu hỏi Corbit Corp sold merchandise for $10,000 cash The cost of merchandise sold was $7,590 The journal entries for this transaction under the perpetual inventory system would be Select one: a Cash Merchandise Inventory Cost of Merchandise Sold Sales 10,000 10,000 7,590 7,590 b Cash Sales Cost of Merchandise Sold Merchandise Inventory 10,000 10,000 7,590 7,590 c Cash Sales Cost of Merchandise Sold Merchandise Inventory 7,590 7,590 7,590 7,590 d Cash Sales Cost of Merchandise Sold Merchandise Inventory 10,000 10,000 10,000 10,000 Câu hỏi 10 Đoạn văn câu hỏi Determine income from operations for Jonas Company based on the following data: Sales Operating expenses Cost of merchandise sold Select one: $764,000 52,500 538,000 a $226,000 b $711,500 c $485,500 d $173,500 Câu hỏi 11 Đoạn văn câu hỏi Which term is applied to the excess of revenue from sales over the cost of merchandise sold? Select one: a gross sales b net income c income from operations d gross profit Câu hỏi 12 As a general rule, revenue is recognized at the point of sale Which one of the following situations illustrates this rule? Select one: a Interest is collected from amounts loaned to employees b Products are sold to customers on credit with payment due in 30 days c Employees are paid wages the week after the wages are earned d Products are purchased for resale purposes Câu hỏi 13 On January 1, 2017, Petersen Corp sold a piece of equipment for $3,000 which it had used for several years The equipment had cost $13,000, and its accumulated depreciation amounted to $9,000 at the time of the sale What are the net effects on the accounting equation of selling the equipment? Select one: a Assets and Stockholders' Equity increases $1,000 b Assets and Stockholders' Equity decrease $1,000 c Assets and Stockholders' Equity decrease $3,000 d Assets decrease and Stockholders' Equity increases $3,000 Câu hỏi 14 Prior to the adjusting process, accrued revenue has Select one: a been earned and cash received b not been earned but recorded as revenue c not been recorded as revenue but cash has been received d been earned and not recorded as revenue Câu hỏi 15 Expenses can be matched against revenue Select one: a if the earnings process is not complete b when payment is made for costs related to revenue c through allocation to the accounting periods in which the benefits are recognized d when cash is collected from the sale of products Câu hỏi 16Fox Auto sold merchandise to a customer for $3,000 on credit on March 10 The customer paid Fox Auto the amount due on March 31 Under the accrual basis of accounting, which of the following statements is true? Select one: a The March 31 transaction has no effect on total assets under the accrual basis b The March 10 transaction increases revenue, but has no effect on assets because cash has not been received c Revenue is recognized after the cost of the merchandise sold has been paid by Fox Auto d Fox Auto will recognize the revenue on March 31 Câu hỏi 17 Data for an adjusting entry described as "accrued revenue, $3,100" requires a Select one: a debit to Unearned Income and a credit to Accounts Receivable b debit Fees Earned and a credit Revenue c debit to Accounts Receivable and a credit to Fees Earned d debit Fees Earned and a credit Accounts Receivable Câu hỏi 18 A company forgot to record four adjustments during 2017 Which one of the following omissions of adjustments will understate net income? Select one: a Sales made during the last week of the period are not recorded b Prepaid insurance is not reduced for the portion of the policy that has expired during the period c Interest on monies borrowed has not yet been recorded d Income taxes owed but not yet paid are ignored Câu hỏi 19 If merchandise sold on account is damaged in shipment, the seller may inform the customer of a reduction to the customer’s account by issuing a Select one: a purchase invoice b debit memo c sales invoice d credit memo Câu hỏi 20 Accumulated depreciation Select one: a is allocated as an expense during future periods b increases when the monthly adjustment for depreciation is recognized c is reported on the income statement with the expense accounts d decreases when the monthly adjustment for depreciation is recognized Câu hỏi 21 Which one of the following adjustments increases net income for the period? Select one: a Recognition of rent costs that had been paid to the landlord in advance b Recognition of the amount of supplies used c Recognition of wages earned, but not paid to employees d Recognition of interest on a note receivable Câu hỏi 22 Accumulated Depreciation and Depreciation Expense are classified, respectively, as Select one: a contra asset, expense b asset, contra liability c expense, contra asset d revenue, asset Câu hỏi 23 Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n) Select one: a contra asset b stockholders' equity c liability d asset Câu hỏi 24 Which account is not classified as a selling expense? Select one: a Sales Salaries b Cost of Merchandise Sold c Delivery Expense d Advertising Expense Câu hỏi 25 Jacob Co sells merchandise on account to Isaiah Co for $9,700 The invoice is dated on May with terms of 1/15, net 45 What is the discount, and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? Select one: a $97, May 15 b $194, May 15 c $97, May 16 d $194, May 16 Câu hỏi 26 Merchandise is sold for cash The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax The journal entry for the sale would include a credit to Select one: a Sales for $6,240 b Sales Tax Payable for $420 c Cash for $6,000 d Sales for $5,580 Câu hỏi 27 All of the following describe a revenue except a revenue Select one: a can result in the settlement of liabilities from the delivery or distribution of goods b can result in the settlement of liabilities from rendering services c can result in the inflow of assets d must involve an inflow of assets Câu hỏi 28 Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as Select one: a selling expenses b general expenses c administrative expenses d other expenses Câu hỏi 29 Under which method are revenues and expenses recognized in the same accounting period that cash receipts and payments occur? Select one: a Under the adjusting method of accounting b Under the cash basis of accounting c Under both the cash and accrual basis of accounting d Under the accrual basis of accounting Câu hỏi 30 Davis Corp has three employees Each earns $600 per week for a five-day workweek ending on Friday This month the last day of the month falls on a Wednesday The company should make which of the following adjusting entries? Select one: a Credit Wages Expense for $1,800 and debit Wages Payable for $1,800 b Debit Wages Expense for $360 and credit Wages Payable for $360 c Debit Wages Expense for $1,800 and credit Wages Payable for $1,800 d Credit Wages Expense for $360 and debit Wages Payable for $360 Câu hỏi 31 Cumberland Co sells $2,000 of merchandise to Hancock Co for cash Cumberland paid $1,250 for the merchandise Under a perpetual inventory system, which of the following is the correct journal entry(ies)? Select one: a debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit Merchandise Inventory, $1,250 b debit Cash, $2,000; credit Merchandise Inventory, $2,000 c debit Cash, $1,250; credit Sales, $1,250 d debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit Merchandise Inventory, $1,250 Câu hỏi 32 Which of the following accounts is not closed to Income Summary at the end of the accounting period? Select one: a Service Revenue b Rent Expense c Unearned Revenue d Supplies Expense Câu hỏi 33 In 2013, Blanton Company bought equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years It was depreciated by the straight-line method for four years Due to obsolescence, it was determined at the beginning of 2017 that the useful life should be shortened by three years and the residual value changed to zero The depreciation expense for 2017 is Select one: a $16,000 b $11,000 c $11,636 d $8,000 Câu hỏi 34 When is revenue from the sale of merchandise normally recognized? Select one: a When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit b Either on the date on which the sale occurs, or the date on which the customer pays c When the customer pays for the merchandise d On the date the sale is made Câu hỏi 35 Which of the following items would not affect the cost of merchandise inventory acquired during the period? Select one: a purchases discounts b sales commissions c quantity discounts d freight in Câu hỏi 36 Wexford Co Wexford Co purchased a new delivery truck at the beginning of 2017 The truck has a cost of $37,000, an estimated life of five years, and an estimated residual value of $7,000 A full year's depreciation expense is to be recorded in 2017 The truck was driven 20,000 miles during 2017 and 24,000 miles during 2018 The number of expected miles over five years is 100,000 Refer to the information for Wexford Co Wexford is comparing the straight-line and double-declining-balance depreciation methods Of these two methods, which method creates the larger expense and larger tax savings in 2017? Select one: a Straight-line depreciation creates both the larger expense and the larger tax savings b Straight-line depreciation creates the larger expense, while double-declining-balance depreciation creates the larger tax savings c Double-declining-balance depreciation creates the larger expense, while straight-line depreciation creates the larger tax savings d Double-declining-balance depreciation creates both the larger expense and the larger tax savings Câu hỏi 37 Abbey Co sold merchandise to Gomez Co on account, $35,000, terms 2/15, net 45 The cost of the merchandise sold was $24,500 Abbey Co issued a credit memo for $3,600 for defective merchandise, which was not returned to Abbey Gomez Co paid the invoice within the discount period What is the gross profit earned by Abbey Co on these transactions? Select one: a $6,272 b $30,772 c $10,500 d $31,400 Câu hỏi 38 In a merchandising business, operating income plus operating expenses is equal to Select one: a cost of merchandise sold b gross profit c sales d cost of merchandise available for sale Câu hỏi 39 Failure to record accrued interest expense would result in which of the following? Select one: a Liabilities being overstated b Assets being overstated c Liabilities being understated d Assets being understated Câu hỏi 40 Merchandise is ordered on November 10; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 13; the merchandise is received by the buyer on November 18; and the entry is made in the buyer's accounts on November 20 The credit period begins with what date? Select one: a November 10 b November 18 c November 13 d November 20