question

Asset, Debit, Balance Sheet

answer

Cash

question

Liability, Credit, Balance Sheet

answer

Accounts Payable

question

Asset, Debit, Balance Sheet

answer

Accounts Receivable

question

Contra Asset, Credit, Balance Sheet

answer

Accumulated Depreciation

question

Expense, Debit, Income Statement

answer

Advertising Expense

question

Contra Asset, Credit, Balance Sheet

answer

Allowance for Doubtful Accounts

question

Expense, Debit, Income Statement

answer

Amortization Expense

question

Expense, Debit, Income Statement

answer

Bad Debt Expense

question

Liability, Credit, Balance Sheet

answer

Bonds Payable

question

Asset, Debit, Balance Sheet

answer

Buildings

question

Stockholders' Equity, Credit, Balance Sheet

answer

Common Stock

question

Asset, Debit, Balance Sheet

answer

Copyrights

question

Expense, Debit, Income Statement

answer

Cost of Goods Sold

question

Asset, Debit, Balance Sheet

answer

Debt Investments

question

Expense, Debit, Income Statement

answer

Depreciation Expense

question

Contra Liability, Debit, Balance Sheet

answer

Discount on Bonds Payable

question

Revenue, Credit, Income Statement

answer

Dividend Revenue

question

Contra Asset, Debit, Retained Earnings Statement

answer

Dividends

question

Liability, Credit, Balance Sheet

answer

Dividends Payable

question

Asset, Debit, Balance Sheet

answer

Equipment

question

Revenue, Credit, Income Statement

answer

Gain on Disposal of Plant Assets

question

Asset, Debit, Balance Sheet

answer

Goodwill

question

Expense, Debit, Income Statement

answer

Income Tax Expense

question

Liability, Credit, Balance Sheet

answer

Income Taxes Payable

question

Expense, Debit, Income Statement

answer

Insurance Expense

question

Expense, Debit, Income Statement

answer

Interest Expense

question

Liability, Debit, Income Statement

answer

Interest Payable

question

Asset, Debit, Balance Sheet

answer

Interest Receivable

question

Revenue, Credit, Income Statement

answer

Interest Revenue

question

Asset, Debit, Balance Sheet

answer

Inventory

question

Asset, Debit, Balance Sheet

answer

Land

question

Expense, Debit, Income Statement

answer

Loss on Disposal of Plant Assets

question

Expense, Debit, Income Statement

answer

Maintenance and Repairs Expense

question

Liability, Credit, Balance Sheet

answer

Mortgage Payable

question

Liability, Credit, Balance Sheet

answer

Notes Payable

question

Asset, Debit, Balance Sheet

answer

Patents

question

Stockholders' Equity, Credit, Balance Sheet

answer

Preferred Stock

question

Liability, Credit, Balance Sheet

answer

Premium on Bonds Payable

question

Asset, Debit, Balance Sheet

answer

Prepaid Insurance

question

Expense, Debit, Income Statement

answer

Rent Expense

question

Stockholders' Equity, Credit, Balance Sheet and Retained Earnings Statement

answer

Retained Earnings

question

Expense, Debit, Income Statement

answer

Salaries and Wages Expense

question

Contra Revenue, Debit, Income Statement

answer

Sales Discounts

question

Contra Revenue, Debit, Income Statement

answer

Sales Returns and Allowances

question

Revenue, Credit, Income Statement

answer

Sales Revenue

question

Expense, Debit, Income Statement

answer

Selling Expenses

question

Revenue, Credit, Income Statement

answer

Service Revenue

question

Asset, Debit, Balance Sheet

answer

Short-Term Investments

question

Asset, Debit, Balance Sheet

answer

Stock Investment

question

Asset, Debit, Balance Sheet

answer

Supplies

question

Expense, Debit, Income Statement

answer

Supplies Expense

question

Stockholders' Equity, Debit, Balance Sheet

answer

Treasury Stock

question

Expense, Debit, Income Statement

answer

Utilities Expense

question

$470,000

answer

Mobile Instruments had retained earnings of $360,000 at December 31, 2013. Net Income for 2014 totaled $200,000 and dividends for 2014 were $90,000. How much retained earnings should Mobile report at December 31, 2014?

question

Dr: Cash Dr: Accts. Receivable Cr: Service Revenue

answer

An attorney performs services of $1,100 for a client and receives $400 cash with the remainder on account. The journal entry for this transaction would be:

question

Dr: Supplies Cr: Accts. Payable Cr: Cash

answer

A doctor purchases medical supplies of $640 and pays $290 cash with the remainder on account. The journal entry for this transaction would be which of the following?

question

Income Statement

answer

The financial statement that reports revenues and expenses is called the:

question

Liabilities and Revenues

answer

Which account types normally have a credit balance?

question

$19,000 (20,000-5,000+4,000)

answer

The beginning Cash balance was $5,000. At the end of the period, the balance was $4,000. If total cash paid out during the period was $20,000, the amount of cash receipts was:

question

$111,000

answer

The following normal balances appear on the adjusted trial balance of Old Orchard Company: Equipment......$125,000 Accumulated Depreciation, equipment......$14,000 Depreciation Expense, equipment......$7,000 The book value of the equipment is:

question

Accumulated Depreciation

answer

Which of the following accounts is not closed?

question

Have no effect on total assets

answer

Receiving cash for a customer on account will:

question

Trial Balance

answer

The list of all accounts with their balances is the:

question

$1,900 Credit

answer

Accounts Payable had a normal beginning balance of $1,500. During the period, there were debit postings of $400 and credit postings of $800. What was the ending balance?

question

Total assets: $130,000 Liabilities: $26,000

answer

Honor Corporation holds cash of $9,000 and owes $26,000 on accounts payable. Honor has accounts receivable of $41,000, inventory of $20,000, and land that cost $60,000. How much are Honor's total assets and liabilities?

question

Net income of $135,000

answer

During the year, FastDry, Inc. has $260,000 in revenues, $125,000 in expenses, and $5,000 in dividend payments. FastDry, Inc. had:

question

Increased by $52,000

answer

During February, assets increased by $83,000 and liabilities increased by $31,000. Stockholders' equity must have:

question

Accumulated Depreciation

answer

Which of the following accounts would not be included in the closing entries?

question

Dr: Interest Receivable...375 Cr: Interest Revenue...375

answer

Interest earned on a note receivable at December 31 equals $375. What adjusting entry is required to accrue this interest?

question

Increase both total assets and total liabilities by $75,000

answer

Purchasing a building for $90,000 by paying cash of $15,000 and signing a note payable for $75,000 will:

question

Total Assets: decrease Stockholders' Equity: decrease

answer

What is the effect on total assets and stockholders' equity of paying the telephone bill as soon as it is received each month?

question

A credit to prepaid rent for $100

answer

On January 1 of the current year, Ariel Company paid $600 in rent to cover six months (January-June). Ariel recorded this transaction as follows: Dr: Prepaid rent.....600 Cr: Cash.....600 Ariel adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at the end of January should include:

question

Balance Sheet: Cash, receivables, payables Income Statement: Revenues, Expenses

answer

Which accounts appear on which financial statement?

question

Debit supplies expense $800

answer

Storage, Inc. purchased supplies for $1,500 during 2014. At year-end, Storage had $700 of supplies left. The adjusting entry should:

question

Historical Cost

answer

Assets are usually reported at their:

question

Liability

answer

The account Unearned Revenue is a(n):

question

$89,000 (A=L + S/O)

answer

Smith Company had total assets of $1,555,000 and total stockholders' equity of $53,000 at the beginning of the year. During the year, assets increased by $46,000 and liabilities increased by $10,000. Stockholders' equity at the end of the year is:

question

$585,000

answer

Wilson Company had the following on the dates indicated: 12/31/13: total assets.....$38,000 total liabilities.....$27,000 12/31/14: total assets.....$560,000 total liabilities.....$34,000 Wilson had no stock transactions in 2014; thus, the change in stockholders' equity for 2014 was due to net income and dividends. If dividends were $70,000, how much was Wilson's net income for 2014? Use the accounting equation and the statements of retained earnings.

question

False

answer

True or False: Dividends are increased by credits.

question

True

answer

True or False: Assets are increased by debits.

question

True

answer

True or False: revenues are increased by credits.

question

True

answer

True or False: liabilities are decreased by debits.

question

August (reported, but not collected)

answer

Beryl Strauss began a music business in July 2014. Strauss prepares monthly financial statements and uses the accrual basis of accounting. The following transactions are Strauss Company's only activities during July through October: Jul 14.....bought music on account for $25, with payment to the supplier due in 90 days. Aug 3.....performed a job on account for Jimmy Jones for $40, collectible from Jones in 30 days. used up all the music purchased on July 14. Sep 16.....collected the $40 receivable from Jones Oct 22.....paid the $25 owed to the supplier from the July 14 transaction In which month should Strauss report the $40 revenue on its income statement?

question

$(12,000)

answer

Pinker Corporation began the year with cash of $147,000 and land that cost $15,000. During the year Pinker earned service revenue of $255,000 and had the following expenses: salaries, $159,000; rent, $87,000; and utilities, $21,000. At year-end Pinker's cash balance was down to $15,000. How much net income (or net loss) did Pinker experience for the year?

question

4.00 (current assets/current liabilities)

answer

Here are key figures from the balance sheet of Majorca, Inc., at the end of 2014 (amounts in thousands): Total assets (of which 40% are current).....7,000 Current liabilities.....700 Bonds payable (long-term).....1,200 Common Stock.....1,500 Retained Earnings.....3,600 Total liabilities and stockholders' equity.....7,000 Majorca's current ration at the end of 2014 is:

question

Dr: Unearned rent revenue.....2,800 Cr: Rent revenue.....2,800

answer

On September 1, Seashore Apartments received $2,800 from a tenant for four months' rent. The receipt was credited to Unearned Rent Revenue. What adjusting entry is needed on December 31?

question

Assets-Liabilities=Owners' Equity

answer

The accounting equation can be expressed as:

question

$400

answer

On January 1 of the current year, Cruella Company paid $2,400 in rent to cover six months (January-June). Cruella recorded this transaction as follows: Dr: Prepaid Rent.....2,400 Cr: Cash.....2,400 Cruella adjusts the accounts at the end of each month. Cruella's adjusting entry at the end of February should include a debit to Rent Expense in the amount of:

question

$237,000

answer

The stockholders' equity of Gorsky Company at the beginning and end of 2014 totaled $117,000 and $137,000, respectively. Assets at the beginning of 2014 were $145,000. If the liabilities of Gorsky Company increased by $72,000 in 2014, how much were total assets at the end of 2014? Use the accounting equation.

question

Dr: Management Fee Revenue Cr: Retained Earnings

answer

The entry to close Management Fee Revenue would be which of the following?

question

$100,000

answer

Lartex, a new company, completed these transactions. What will Lartex's total assets equal? 1. Stockholders invested $50,000 cash and inventory with a fair value of $29,000. 2. Sales on account, $21,000

question

$121

answer

Use the following data of Manatee Sales, Inc.: Beginning Inventory: Units...15 Unit Cost...6 Total Cost...90 Purchase on Apr 25: Units...31 Unit Cost...7 Total Cost...217 Purchase on Nov 16: Units...11 Unit Cost...9 Total Cost...99 Sales: Units...40 Unit Cost...? Total Cost...? Manatee Sales' average cost of ending inventory is:

question

$84

answer

Use the following data of Stingray Sales, Inc.: Beginning Inventory: Units...14 Unit Cost...5 Total Cost...70 Purchase on Apr 25: Units...31 Unit Cost...7 Total Cost...217 Purchase on Nov 16: Units...11 Unit Cost...8 Total Cost...88 Sales: Units...40 Unit Cost...? Total Cost...? Stingray Sales' LIFO cost of ending inventory would be:

question

Credit to interest revenue for $21.00

answer

Venus Ltd. received a four-month 9%, 2,800 note receivable on Mark 1. The adjusting entry on March 31 will include:

question

$65,900

answer

Trudell Tank Company had the following beginning inventory, net purchases, net sales, and gross profit percentage for the first quarter of 2014: Beginning inventory: $52,000 Net sales revenue: $93,000 Net purchases: $79,000 Gross profit rate: 30% By the gross profit method, the ending inventory should be:

question

$12,860

answer

Joshua Company had the following information in 2014: Accounts receivable 12/31/14...$14,000 Allowance for uncollectible account 12/31/14 (before adjustment)...750 Credit sales during 2014...38,000 Cash sales during 2014...10,000 Collections from customers on account during 2014...49,000 If uncollectible accounts are determined by the aging-of-receivables method to be $1,140, the uncollectible-account expense for 2014 would be $390. The balance of the allowance account after the adjusting entry would be $1,140. The net realizable value of accounts receivable on the December 31, 2014 balance sheet would be:

question

d. All of the above

answer

Before paying an invoice for goods received on account, the controller or treasurer should ensure that: a. the company is paying for the goods it ordered b. the company is paying for the goods it actually received c. the company has not already paid this invoice d. all of the above.

question

$5,740

answer

Crowe Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 2014, the balance of accounts receivable is $220,000, and the allowance for uncollectible accounts has a credit balance of $5,000 (before adjustment). An analysis of accounts receivable produced the following age groups: Current.....160,000 60 days past due.....54,000 over 60 days past due.....6,000 total: 220,000 Based on past experience, Crowe estimates that the percentage of accounts that will prove to be uncollectible within the three age groups is 3%, 9%, and 18%, respectively. Based on these facts, the adjusting entry for uncollectible accounts should be made in the amount of:

question

No entry is required

answer

If a bank reconciliation included a deposit in transit of $790, the entry to record this reconciling item would include a:

question

Increase supplies, $45 Decrease cash, $45

answer

A check was written for $483 to purchase supplies. The check was recorded in the journal as $438. The entry to correct this error would:

question

Separation of duties

answer

Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?

question

Deducted from the book balance

answer

In a bank reconciliation, an EFT cash payment is:

question

$5,200

answer

Linus Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $130,000, and management estimates 4% will be uncollectible. Allowance for doubtful accounts prior to adjustment has a credit balance of $1,000. The amount of expense to report on the income statement will be:

question

An understatement of net income of the next period

answer

An overstatement of ending inventory in one period results in:

question

$22,560

answer

Frame First Frame Shop wants to know the effect of different inventory costing methods on its financial statements. Inventory and purchases data for June are: Beginning Inventory (June 1): Units...2,100 Unit cost...12.00 Total cost...25,200 Purchase (June 4): Units...1,600 Unit Cost...12.60 Total cost...20,160 Sale (June 9): Units...(1,900) Unit Cost...? Total cost...? If Frame First Frame Shop uses the FIFOmethod, the cost of the ending inventory will be:

question

$5,400

answer

Graham Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $120,000, and management estimates 2% will be uncollectible. The amount of expense to report on the income statement was $2,400. Allowance for doubtful accounts prior to adjustment has a credit balance of $3,000. The balance of allowance for doubtful accounts, after adjustment, will be:

question

E. All of the above might be included in "cash equivalents"

answer

Which of the following assets are not included in "cash equivalents" in a typical balance sheet? a. foreign government securities b. time deposits c. certain very low risk equity securities d. u.s. government securities e. all of the above might be included in "cash equivalents"

question

$338

answer

Use the following data of Tortoise Sales, Inc.: Beginning Inventory: Units....22 Unit Cost....7 Total Cost...154 Purchase on Apr 25: Units....33 Unit Cost....8 Total Cost....264 Purchase on Nov 16: Units....13 Unit Cost....10 Total Cost....130 Sales: Units....45 Unit Cost....? Total Cost....? Tortoise Sales uses a FIFO inventory system. Cost of goods sold for the period is:

question

FIFO

answer

During a period of rising prices, the inventory method that will yield the highest net income and asset value is:

question

FIFO

answer

First In First Out; , Cost of oldest inventory goes to COGS, while newest inventory goes to Ending Inventory. The formula is Beginning inventory + Purchases - Ending inventory (sum of all units).

question

LIFO

answer

Last In First Out; Last costs into inventory go to cost of goods sold (most recent items purchased are assumed to be sold first). Oldest costs go into ending inventory. Examples include donut shops-freshest inventory is sold first, the least fresh inventory will be recorded in ending inventory.

question

Dr: Land (purchase + costs) Cr: Note Payable (purchase) Cr: Cash (costs)

answer

Journal entry for the purchase of land

question

Capital Expenditures

answer

Expenditures that increase the asset's capacity or extend its useful life. They are said to be capitalized, which means the cost is added to an asset account and not expensed immediately.

question

Book Value of a Plant Asset=Cost-Accumulated Depreciation

answer

Formula for plant assets recorded at book value.

question

Physical wear and tear and obsolescence

answer

Two factors caused by depreciation.

question

Physical wear and tear

answer

Physical deterioration takes its toll on the usefulness of an asset. Examples of these assets includes airplanes, equipment, delivery trucks, and buildings.

question

Obsolescence

answer

An asset that is absolute when another asset can do the job more efficiently; an asset's useful life may be shorter than its physical life. Examples of these assets include computers and other electronic equipment.

question

Depreciation Expense

answer

Recall that ____________ is reported on the statement, not accumulated depreciation.

question

Straight-line, units-of-production, double-declining balance

answer

Three methods of depreciation.

question

(depreciable cost-residual value)/useful life in years

answer

How to calculate straight line depreciation.

question

Dr: Depreciation Expense: Asset Cr: Accumulated Depreciation: Asset

answer

Journal Entry to record depreciation

question

Rate, Depreciable Cost, Yearly Expense

answer

Which parts of the straight line depreciation schedule stay the same?

question

Increases, decreases

answer

As an asset is used in operations, accumulated depreciation _________ and the book value of an asset __________.

question

(Depreciable cost-residual value)/useful life, in units of production

answer

How to calculate units-of-production depreciation

question

$150,000

answer

Steeple Company had cost of goods sold of $145,000. The beginning and ending inventories were $3,000 and $8,000, respectively. Purchases for the period must have been:

question

When inventory is delivered to a customer

answer

When does the cost of inventory become an expense?

question

$1,125

answer

On August 1, 2014, Gitores, Inc., sold equipment and accepted a six-month, 9%, 30,000 note receivable. Gitores' year-end is December 31. How much interest revenue should Gitores accrue on December 31, 2014?

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