Book keeping Test
'2/10, net 30' is an example of:
A check issued by you, but not yet passed through the banking system, is:
A multiple-step income statement is thought to be more beneficial to financial users because of the revelation of important relationships. Which of the following is not separately identified in a m...
A payment of cash for the purchases of services should be recorded in the:
Account books are typically closed on a _________ basis.
Accounts payable refer to the current
An increase in a firm's receivable turnover ratio means that:
An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the final inventory valuation is:
By which of the following formulas should interest on a loan be computed?
Documents used to control a bank account include the following except
Failure to record the receipt of a utility bill for services already received will result in _____.
Gerald's had opening total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Their net income was $180,000. No addit...
Gerber Departmental Store uses the retail inventory method. Their opening inventory had cost $140,000 and its retail price was fixed at $280,000. Purchases for the period amounted to $390,000 and w...
Home Depot. Inc. had net purchases of $50,000, closing inventory of $25,000, net sales of $100,000, and gross profit of $32,000. How much was their opening inventory?
How does a company ensure that their physical inventory matches what is there in the account books?
How often can a company change its inventory valuation methodology and still be compliant with GAAP?
If a bank account does not reconcile, what's the best thing to do?
If a customer is not paying their invoices, the best first step to encourage them to pay is:
If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing:
If the supplies account (assets), before adjustment on May 31, indicated a balance of $2,250, and the supplies on hand on May 31 totaled $950, the adjusting entry would be:
If you want to make sure that your money should remain safe when checks sent are lost in the post, you should:
In which section of the balance sheet should inventory accounts be classified?
Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, is likely to result in:
Lindy & Co. use an allowance method to account for bad debts. They estimate that 5% of the outstanding accounts receivable will be uncollectible. At the end of the year, they have outstanding accou...
Lundstrom & Co. began making sales on credit during 20X1. The Co. used the direct write-off method for uncollectible accounts. A material amount of uncollectible accounts resulting from the sales m...
Mike is the payee of a $20,000, 180-day, 8% note. On maturity, the note maker fails to pay. How much interest income should Mike receive on the dishonored note?
Of the following account types, which would be increased by a debit?
Of the following manufacturing operations, which is best suited to the utilization of a job order system?
Office Mart's financial statements revealed an uncollectible accounts expense of $8,000, accounts receivable of $140,000, and allowance for uncollectible accounts of $12,000. The net realizable val...
Purchasers of merchandise may be dissatisfied with the quality of goods purchased on account, and return the goods to the seller with an indication that payment will not be forthcoming. In such a c...
Refer to the given image: Bernstein Corporation Ltd.recently experienced a fire which destroyed its entire inventory. The following data have been reconstructed from the partial accounting informa...
Refer to the given image: Dodd & Co. uses the periodic inventory accounting system. They had the opening inventory of $59,000, the closing inventory of $37,000, and made net purchases of $123,000....
Refer to the given image: Hefty & Co. wants to know the effect of different inventory methods on financial statements. Given below is the information about the opening inventory and purchases for ...
Refer to the given image: Hefty Co. wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the curr...
Refer to the given image: Lynn Lippincott invested land valued at $5,000 in her business. This transaction would be recorded by:
Refer to the given image: On February 1, Crown & Co. purchased $2,000 worth of merchandise, terms 2%/ 10 net 30 days. They use the gross method of recording purchases. Payment of the accounts paya...
Refer to the given image: On March 1, Zekew & Co. purchased $1,000 worth of merchandise, terms 1%10 net 30 days. They use the net method of recording purchases. Payment of the accounts payable was...
Refer to the given image: The proper journal entry to record $1,000 of Dividend paid by Myer's Corporation Ltd. is:
Refer to the given image: The proper journal entry to record Ransom & Co.'s billing of clients for $500 of services rendered is:
Remington Inc. has provided the following information about its balance sheet: Cash $ 100 Accounts receivable $ 500 Stockholders' equity $ ...
Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in them (Retained Earnings)?
Ritz & Co. agreed to purchase certain inventory items from Hostess Corporation. The Hostess shipped the goods F.O.B. destination. On December 31, the Ritz's accounting year-end, they were aware tha...
Russell Merchandising Ltd. uses the perpetual inventory system. Which of the following statements would be correct?
Sorting the accounts Payable into current, 1-30 days past due, 31-60 days past due, and so on, is known as
The accounting profession can be divided into three major categories; specifically, the public accounting, private accounting, and governmental accounting. A somewhat unique and important service o...
The amount of cash reported in the financial statements is the closing balance of cash reported in the ______________.
The appropriate journal entry to record the application of overhead in a job costing system involves a debit to Work in Process and a credit to:
The basic sequence in the accounting process can best be described as:
The best inventory method to adopt for a company that sells a product in large quantities, for example nails, would be:
The correct journal entry to reconcile an EFT payment of insurance expense is:
The correct journal entry to reconcile an NSF check returned by the bank is:
The correct journal entry to reconcile the interest earned on a bank balance is:
The entry to record the declaration of dividends is:
The entry to record the payment of dividends is:
The following comments relate to the recording of journal entries. Which statement is true?
The following statements are true regarding the Cash short and Over account except
The overhead application rate is calculated by:
The primary private sector agency that oversees external financial reporting standards is the______.
The purpose of Accrued Expenses is:
The sales account and the purchase account should include:
The Sales Day Book is best described as:
The theoretically correct method of allocating under or over applied overhead is to:
The trial balance __________.
Trade accounts receivable:
Under normal circumstances, the Work in Process account used in a job costing system:
Using the following information, determine the adjusted bank balance: bank statement balance $5,000, bank service charges $15, NSF check $500, checks outstanding $1,000, deposits in transit $2,000.
Using the following information, determine the adjusted book balance: cash account balance on the books $27,000, bank service charges $200, NSF check $2,000, checks outstanding $3,000, deposits in ...
What are the adjustments most common to bank reconciliation?
What does Accounts Payable show?
What is accounts payable aging report?
What is the primary goal of an Accounts Payable department?
What is the purpose of applying overhead costs to work in process?
Which of the following best describes the meaning of 'Purchases'?
Which of the following equations properly represents a derivation of the fundamental accounting equation?
Which of the following errors will be disclosed in the preparation of a trial balance?
Which of the following inventory methods will always produce the same results under both a periodic and a perpetual system?
Which of the following is a liability?
Which of the following is a personal account?
Which of the following is a typical prepaid expense?
Which of the following is NOT a fundamental of accounting?
Which of the following regulatory bodies would a publicly traded company be much more involved with than a private company?
Which of the following statements concerning job cost sheets is incorrect?
Which of the following statements concerning job costing systems is incorrect?
Which of the following statements is true?
Which of the following transactions would have no impact on the stockholders' equity?
Which of the following would not be included in a balance sheet?
Which of these items would be accounted for as an expense?
Why do companies hold back paying invoices until due?
Why is cyclical counting a better method of inventory taking than the annual count?
Why is the Accounts Receivable function important?
Why would a company choose to invoice customers weekly rather than monthly?
Wilson & Co. owns land which has cost it $100,000. If a "quick sale" of the land were necessary to generate cash, the Co. feels it would receive only $80,000. The Co. continues to report the asset ...
With the job order cost system, a credit balance in the Factory Overhead account at the end of an accounting period would indicate:
Wonder Corporation Ltd. failed to record the purchase of merchandise in their account books. The merchandise and related accounts payable should have been recorded but were not. What would be the e...