Question 1

........

Accepted Answer

The answer of ...........

Question 2

Which of the following adjusting entries would not be reversed in the following accounting period?

Accepted Answer

A)   an entry that recognized an accrued expense of the current period
B)   an entry that allocated the expired portion of a long-lived asset to the current year's income statement
C)   an entry that transferred a portion of a revenue account to a liability account
D)   an entry that recognized an accrued revenue earned during the current periodE) B) and C)
F) A) and B)

Question 3

The worksheet is not a substitute for accounting records or financial statements but it is a tool helpful for external users to see the detailed information behind the statements.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a purchase return?

Accepted Answer

A)   A company agrees to keep damaged inventory and receives a refund from the supplier.
B)   A customer agrees to keep damaged inventory and receives a partial refund of the selling price.
C)   A company returns inventory to the supplier and receives a refund of the purchase price.
D)   A customer returns inventory to a company and receives a refund of the purchase price.E) None of the above
F) B) and C)

Question 5

Which of the following is the correct reversing entry?

Accepted Answer

A)   Depreciation Expense 1550 Accumulated Depreciation 1550
B)   Interest Revenue 2350 Interest Receivable 2350
C)   Salary Expense 1980 Salary Payable 1980
D)   Income Tax Expense 2500 Income Tax Payable 2500E) All of the above
F) A) and C)

Question 6

On June 1, 2014, Little Corporation received $5,320 in advance for a two-year rental of some land and properly credited Unearned Rent. In the adjusting entry at December 31, 2014, there would be a

Accepted Answer

A)   debit to Unearned Rent for $1108
B)   credit to Rent Revenue for $1552
C)   credit to Unearned Rent for $1552
D)   debit to Unearned Rent for $5,320E) B) and D)
F) B) and C)

Question 7

When you prepare a journal entry, the standard format is to list all

Accepted Answer

A)   asset accounts first
B)   accounts to be debited first
C)   liability accounts first
D)   accounts to be credited firstE) A) and B)
F) All of the above

Question 8

Which of the following accounts would not be closed to Income Summary during the year-end closing process?

Accepted Answer

A)   Loss on Sale of Land
B)   Prepaid Rent
C)   Freight-In
D)   Sales DiscountsE) B) and C)
F) All of the above

Question 9

Which of the following errors does a trial balance not identify?

Accepted Answer

A)   Unposted transaction
B)   transposition
C)   slide
D)   recording of a debit amount that differs from the credit amount recordedE) None of the above
F) A) and C)

Question 10

Which of the following is a permanent account?

Accepted Answer

A)   Dividend Revenue
B)   Allowance for Doubtful Accounts
C)   Interest Expense
D)   Sales RevenueE) A) and B)
F) None of the above

Question 11

Which of the following is NOT a component of an accounting system?

Accepted Answer

A)   the input source documents
B)   the framework for operation of the system
C)   the output reports
D)   all of the above are components of an accounting systemE) B) and D)
F) A) and D)

Question 12

The Merry Company uses the cash basis of accounting. Merry Company made $600,000 in payments to its suppliers during the year. Merry's beginning inventory was $20,000, and its ending inventory was $35,000. In addition, Merry had a beginning accounts payable of $40,000 and an ending accounts payable of $70,000. What is Merry's cost of goods sold under the accrual basis of accounting?

Accepted Answer

A)   $585,000
B)   $600,000
C)   $615,000
D)   $625,000E) A) and B)
F) A) and C)

Question 13

Which of the following is not a reason why a company first prepares a worksheet?

Accepted Answer

A)   simplify recording of adjusting and closing entries in the general journal
B)   substitute for the trial balance
C)   make it easier to prepare financial statements
D)   minimize errorsE) B) and D)
F) B) and C)

Question 14

Which of the following adjusting entries would be the most likely to be reversed?

Accepted Answer

A)   Depreciation Expense 1,500 Accumulated Depreciation 1,500
B)   Unearned Rent 700 Rent Revenue 700
C)   Insurance Expense 800 Prepaid Insurance 800
D)   Income Tax Expense 950 Income Taxes Payable 950E) A) and C)
F) B) and C)

Question 15

Reversing entries should not be made for which of the following?

Accepted Answer

A)   Adjusting entries that defer costs by recording them as prepaid expenses.
B)   Adjusting entries to expenses that are to be paid in the next period.
C)   Adjusting entries to accrue revenue to be collected in the next period.
D)   Adjusting entries related to estimates.E) B) and D)
F) B) and C)

Question 16

The accrual and the cash bases of accounting were discussed in the textbook. Please (a) define the cash-basis accounting method and state how net income is determined using this method, (b) describe accrual accounting, and (c) indicate which of the two methods (i.e., cash or accrual) is recommended under GAAP.

Accepted Answer

a.Under cash-basis accounting, a company...

Question 17

The financial statements are the responsibility of the

Accepted Answer

A)   auditors
B)   management
C)   independent certified accountants
D)   Public Accounting Oversight BoardE) A) and D)
F) B) and D)

Question 18

Which T-account is incorrect?

Accepted Answer

A)   
B)   
C)   
D)   E) All of the above
F) C) and D)

Question 19

On a worksheet, the balance in the accumulated depreciation account should be extended to which column?

Accepted Answer

A)   Balance Sheet debit column
B)   Balance Sheet credit column
C)   Income Statement debit column
D)   Income Statement credit columnE) None of the above
F) A) and B)

Question 20

What is the purpose of a reversing entry?

Accepted Answer

It is an optional entry that simplifies ...

Exam 3: Review of a Companys Accounting System

On a worksheet, the balance in the accumulated depreciation account should be extended to which column?

Correct Answer
verified

Which of the following is NOT a component of an accounting system?

Correct Answer
verified

Which of the following is the correct reversing entry?

Correct Answer
verified

When you prepare a journal entry, the standard format is to list all

Correct Answer
verified

Which of the following is a permanent account?

Correct Answer
verified

Correct Answer
verified

Which T-account is incorrect?

Correct Answer
verified

Reversing entries should not be made for which of the following?

Correct Answer
verified

Which of the following errors does a trial balance not identify?

Correct Answer
verified

The worksheet is not a substitute for accounting records or financial statements but it is a tool helpful for external users to see the detailed information behind the statements.

Correct Answer
verified

Correct Answer
verified
a.Under cash-basis accounting, a company...
View Answer

What is the purpose of a reversing entry?

Correct Answer
verified
It is an optional entry that simplifies ...
View Answer

The financial statements are the responsibility of the

Correct Answer
verified

Which of the following accounts would not be closed to Income Summary during the year-end closing process?

Correct Answer
verified

Which of the following adjusting entries would be the most likely to be reversed?

Correct Answer
verified

Which of the following is not a reason why a company first prepares a worksheet?

Correct Answer
verified

........

Correct Answer
verified

Which of the following is a purchase return?

Correct Answer
verified

On June 1, 2014, Little Corporation received $5,320 in advance for a two-year rental of some land and properly credited Unearned Rent. In the adjusting entry at December 31, 2014, there would be a

Correct Answer
verified

Which of the following adjusting entries would not be reversed in the following accounting period?

Correct Answer
verified

Exam 3: Review of a Companys Accounting System

On a worksheet, the balance in the accumulated depreciation account should be extended to which column?

Correct AnswerverifiedShow Answer

Which of the following is NOT a component of an accounting system?

Correct AnswerverifiedShow Answer

Which of the following is the correct reversing entry?

Correct AnswerverifiedShow Answer

When you prepare a journal entry, the standard format is to list all

Correct AnswerverifiedShow Answer

Which of the following is a permanent account?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which T-account is incorrect?

Correct AnswerverifiedShow Answer

Reversing entries should not be made for which of the following?

Correct AnswerverifiedShow Answer

Which of the following errors does a trial balance not identify?

Correct AnswerverifiedShow Answer

The worksheet is not a substitute for accounting records or financial statements but it is a tool helpful for external users to see the detailed information behind the statements.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Under cash-basis accounting, a company...View AnswerShow Answer

What is the purpose of a reversing entry?

Correct AnswerverifiedIt is an optional entry that simplifies ...View AnswerShow Answer

The financial statements are the responsibility of the

Correct AnswerverifiedShow Answer

Which of the following accounts would not be closed to Income Summary during the year-end closing process?

Correct AnswerverifiedShow Answer

Which of the following adjusting entries would be the most likely to be reversed?

Correct AnswerverifiedShow Answer

Which of the following is not a reason why a company first prepares a worksheet?

Correct AnswerverifiedShow Answer

........

Correct AnswerverifiedShow Answer

Which of the following is a purchase return?

Correct AnswerverifiedShow Answer

On June 1, 2014, Little Corporation received $5,320 in advance for a two-year rental of some land and properly credited Unearned Rent. In the adjusting entry at December 31, 2014, there would be a

Correct AnswerverifiedShow Answer

Which of the following adjusting entries would not be reversed in the following accounting period?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Under cash-basis accounting, a company...
View Answer

Correct Answer
verified
It is an optional entry that simplifies ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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