question

Which of the following always recorded in the general journal? -rendering services for cash -purchases of supplies on account -rendering services on account -closing enteries

answer

closing enteries

question

Some of the more common subsidiary ledgers are: -Accounts Payable, Accounts Receivable, and Owner's Equity subsidiary ledgers. -Accounts Receivable and Accounts Payable subsidiary ledgers. -Accounts Receivable, Accounts Payable, Cash, Checking, Petty Cash, and Owner's Equity subsidiary ledgers. -Cash and Owner's Equity subsidiary ledgers.

answer

Accounts Receivable and Accounts Payable subsidary ledgers

question

When posting a column total in the purchases journal, a credit should be posted to -Merchandise Inventory -Accounts Payable -Sales Returns and Allowances -Cash

answer

Accounts Payable

question

The cash receipts journal will be used for

answer

all cash received

question

When there are a large number of individual accounts with a common characteristic, it is common to place them in a separate ledger called a(n)

answer

Subsidiary Ledger

question

Which of the following accounts normally has a subsidiary ledger? -capital stock -retained earnings -supplies -accounts payable

answer

accounts payable

question

The subsidiary ledger that includes customer account activity is called the

answer

account receiveable ledger

question

Which of the following journals is called an all-purpose journal? -General journal -Purchases journal -Revenue journal -Accounting journal

answer

General journal

question

An "Accounts Receivable Subsidiary Ledger" report shows

answer

cash receipts by customer for a specified date range.

question

A cash purchase of supplies should be recorded in the

answer

Cash Payments journal

question

Which of the following transactions is recorded in the revenue journal? -sale of excess office equipment for cash -rendering services for cash -rendering services on account -sale of excess office equipment on account

answer

rendering service on account

question

A cash investment made by the owner should be recorded on the

answer

cash receipt journal

question

Services performed for cash should be recorded in the

answer

Cash receipt journal

question

A withdrawal of cash made by the owner will be found in the

answer

cash payment journal

question

At the end of the month, the total of the amount column of the revenue journal is posted as a

answer

debit to Accounts Receivable and a credit to Fees Earned

question

Under the perpetual inventory system, all purchases of merchandise are debited to the account entitled

answer

Merchandise Inventory

question

When comparing a retail business to a service business, the financial statement that changes the least is the

answer

Statement of Owner's Equity

question

Where are selling and administrative expenses found on the multiple-step income statement?

answer

after gross profit

question

The statement of owner's equity shows

answer

all the changes in the owner's capital as a result of net income, net loss, additional investments, and withdrawals

question

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

answer

debit to Merchandise Inventory

question

The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a

answer

single-step statement

question

Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense?

answer

administrative expense

question

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

answer

$650

question

Which account will be included in both service and merchandising companies closing entries? -Sales -Cost of Merchandise Sold -Purchase Discounts -Sales Returns and Allowances

answer

Sales

question

When comparing a retail business to a service business, the financial statement that changes the most is the

answer

Income Statement

question

When goods are shipped FOB destination and the seller pays the freight charges, the buyer

answer

makes no journal entry for the freight

question

Anthony Company sold Madison Company merchandise on account FOB shipping point, 2/10, net 30, for $10,000. Anthony prepaid the $300 shipping charge. Which of the following entries does Anthony make to record this sale?

answer

Accounts Receivable-Madison, debit $10,000; Sales, credit $10,000, and Accounts Receivable-Madison, debit $300; Cash, credit $300

question

When the perpetual inventory system is used, the inventory sold is debited to

answer

cost of merchandise sold

question

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

answer

debit to Cash and a credit to Sales

question

The inventory system employing accounting records that continuously disclose the amount of inventory is called

answer

perpetual

question

When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry

answer

debit Cash; credit Merchandise Inventory

question

If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

answer

FOB destination

question

Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded?

answer

Cash $2,000 Dr, Sales $2,000 Cr, and Cost of Merchandise Sold $1,250 Dr, Merchandise Inventory $1,250 Cr.

question

Which of the following accounts usually has a debit balance? -Purchase Discounts -Sales Tax Payable -Allowance for Doubtful Accounts -Freight-In

answer

Freight-In

question

The inventory costing method that reports the earliest costs in ending inventory is

answer

LIFO

question

Under the _________ inventory method, accounting records maintain a continuously updated inventory value.

answer

perpetual

question

The inventory method that assigns the most recent costs to cost of goods sold is

answer

LIFO

question

Which of the following is used to analyze the efficiency and effectiveness of inventory management? -inventory turnover only -number of days' sales in inventory only -both inventory turnover and number of days' sales in inventory -neither inventory turnover or number of days' sales in inventory

answer

both inventory turnover and number of days' sales in inventory

question

Inventory costing methods place primary emphasis on assumptions about

answer

flow of costs

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