Accounting

​1) Accounting:

A. processes data into reports and communicates the data to decision makers.

B. is often called the language of business.

C. measures business activities.

D. is all of the above.

2) Assets include​ cash, land, and accounts payable.

True

False

3) A prepaid expense is an asset.

True

False

4) The primary objective of financial reporting is to provide information

A. on the cash flows of the company.

B. to the federal government.

C. useful for making investment and credit decisions.

D. about the profitability of the enterprise.

5) Each transaction has either an equal effect on both the left – and right- sides of the accounting​ equation, or an offsetting effect​ (both positive and​ negative) on the same side of the equation.

True

False

6) During​ February, assets increased by $ 87,000 and liabilities increased by $ 31,000. Stockholders’ equity must have

A. increased by $ 56,000.

B. decreased by $ 56,000.

C. increased by $ 118,000.

D. decreased by $ 118,000

7) Thompson Instruments had retained earnings of $ 340,000 at December​ 31, 2015.

Net income for 2016 totaled $ 185,000, and dividends for 2016 were $ 85,000.

How much retained earnings should Thompson report at December​ 31, 2016?

A. $ 425,000

B. $ 340,000

C. $ 525,000

D. $ 440,000

8) Purchasing a laptop computer on account will

A. increase total assets.

B. have no effect on​ stockholders’ equity.

C. increase total liabilities.

D. All of the listed choices are correct.

9) Performing a service on account will

A. increase total assets.

B. increase​ stockholders’ equity.

C. increase total liabilities.

D. accomplish both a and b.

10) Receiving cash from a customer on account will

A. decrease liabilities.

B. have no effect on total assets.

C. increase​ stockholders’ equity.

D. increase total assets.

11) Which of the following is not an asset​ account?

A. Salary Expense

B. Common Stock

C. Service Revenue

D. None of the listed accounts is an asset.

12) The journal entry to record the purchase of supplies on account

A. debits Supplies Expense and credits Supplies.

B. credits Supplies and debits Cash.

C. credits Supplies and debits Accounts Payable.

D. debits Supplies and credits Accounts Payable.

13) On January 1 of the current​ year, Bambi Company paid $ 1,500 in rent to cover six months

​(January long dash June). Bambi recorded this transaction as​ follows:

Journal Entry
Date Accounts Debit Credit
Jan 1 Prepaid Rent 1,500  
    Cash   1,500

Bambi adjusts the accounts at the end of each month. Based on these​ facts, the adjusting entry at the end of January should include

A. a debit to Prepaid Rent for $ 1,250.

B. a credit to Prepaid Rent for $ 250.

C. a debit to Prepaid Rent for $ 250.

D. a credit to Prepaid Rent for $ 1,250.

14) On January 1 of the current​ year, Bamber Company paid $ 1,500 in rent to cover six months​ (January -​ June). Bamber recorded this transaction as​ follows:

Journal Entry
Date Accounts Debit Credit
Jan 1 Prepaid Rent 1,500  
    Cash   1,500

Bamber​’s adjusting entry at the end of February included a debit to Rent Expense in the amount of $ 250. What effect does the adjusting entry have on Bamber’s net income for​ February?

A. Decrease by $ 500

B. Increase by $ 500

C. Decrease by $ 250

D. Increase by $ 250

15) An adjusting entry recorded June salary expense that will be paid in July. Which statement best describes the effect of this adjusting entry on the​ company’s accounting​ equation?

A. Assets are not​ affected, liabilities are​ increased, and​ stockholders’ equity is increased.

B. Assets are​ decreased, liabilities are not​ affected, and​ stockholders’ equity is decreased.

C. Assets are​ decreased, liabilities are​ increased, and​ stockholders’ equity is decreased.

D. Assets are not​ affected, liabilities are​ increased, and​ stockholders’ equity is decreased.

16) All of the following are internal control procedures except

A. Sarbanes-Oxley reforms.

B. adequate records.

C. assignment of responsibilities.

D. internal and external audits.

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

A. Competent and reliable personnel

B. Monitoring of controls

C. Assignment of responsibility

D. Separation of duties

18) In a bank​ reconciliation, an EFT cash payment is

A. deducted from the bank balance.

B. deducted from the book balance.

C. added to the book balance.

D. added to the bank balance.

19) If a bookkeeper mistakenly recorded a $ 34deposit as $ 43, the error would be shown on the bank reconciliation as a

A. $ 9 addition to the book balance.

B. $ 43 deduction from the book balance.

C. $ 43 addition to the book balance.

D. $ 9 deduction from the book balance.

20) In a bank​ reconciliation, interest revenue earned on your bank balance is

A. deducted from the book balance.

B. added to the bank balance.

C. added to the book balance.

D. deducted from the bank balance.

21) Which of the following is included in the calculation of the quick​ (acid-test) ratio?

A. Cash and accounts receivable

B. Inventory and prepaid expenses

C. Prepaid expenses and cash

D. Inventory and​ short-term investments

22) A company with net credit sales of $ 1,017,000, beginning net receivables of $ 90,000,

and ending net receivables of $ 120,000, has ​ days’ sales outstanding of (Round interim calculations to two decimal​ places, XX.XX and the​ days’ sales outstanding​ (DSO) up to the next whole​ day.)

A. 48 days.

B. 41 days.

C. 38 days.

D. 44 days.

23) Riverview Software began January with $ 3,700 of merchandise inventory. During​ January,

Riverview made the following entries for its inventory​ transactions:

Inventory 6,600
    Accounts Payable   6,600
         
    Accounts Receivable 7,300  
    Sales Revenue   7,300
         
    Cost of Goods Sold 5,200  
    Inventory   5,200

How much was Riverview’s inventory at the end of​ January?

A. $ 5,100

B. $ -0-

C. $ 6,600

D. $ 10,300

24) Leading Edge Frame Shop wants to know the effect of different inventory costing methods on its financial statements. Inventory and purchases data for June follow:

    Units Unit Cost Total Cost
Jun 1 Beginning inventory 2,400 $18.00 $43,200
  4 Purchase 1,500 $18.30 27,450
  9 Sale (1,800)    

If Leading Edge Frame Shop uses the LIFO​ method, cost of goods sold will be

A. $ 27,450.

B. $ 32 ,850.

C. $ 32,700.

D. $ 32,400

.

25) Two financial ratios that clearly distinguish a discount chain such as Walmart from a​ high-end retailer such as Gucci are the gross profit percentage and the rate of inventory turnover. Which set of relationships is most likely for​ Gucci?

Gross profit percentage Inventory turnover

A. High High

B. Low Low

C. Low High

D High Low

26) Sales are $ 500,000 and cost of goods sold is $ 320,000. Beginning and ending inventories are

$ 28,000 and $ 38,000, respectively. How many times did the company turn its inventory over during this​ period?

A. 9.7 times

B. 6.4 times

C. 15.2 times

D. 5.5 times

Order now and get 10% discount on all orders above $50 now!!The professional are ready and willing handle your assignment.

ORDER NOW »»