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Accounting Multiple Choice Questions

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Question;QuizNote: It is recommended that you save your response as you complete each question.;Question 1 (2 points)Use the following information to calculate the COGS for Beth's Jewels.;Beginning merchandise inventory $41,000 Ending merchandise inventory 34,000 Purchases 52,000 Purchases discounts 1,300 Freight-in 900;Key your response using a dollar sign and appropriate commas but no decimal places.;Question 1 options;Question 2 (2 points);Determine the cost of goods sold for L. I. Grill from the information given below: Key your response with a dollar sign and appropriate commas but no decimal places.Merchandise Inventory, January 1, 20--;$57,700Merchandise Inventory, December 31, 20--;48,300;Purchases98,000;Purchases Returns and Allowances6,100;Purchases Discounts8,175;Freight-In1,100;Question 2 options;Question 3 (2 points);When a fiscal year that starts and ends at the time the stock of merchandise is normally at its lowest level is selected, it is known as a(n);Question 3 options;A)natural business year.;B)calendar year.;C)base year.;D)accounting cycle.;Save;Question 4 (2 points);The following data applies to a particular item of merchandise;On hand at start of period;300$5.10;1st purchase;500;5.20;2nd purchase;700;5.30;3rd purchase;600;5.50;Number of units available for sale;2,100;On hand at end of period;500;Number of units sold during period;1,600;Of the 1,600 units sold during the period, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase, and 200 from the last purchase. Using the specific identification costing method, the value of inventory on hand at the end of the period would be;Question 4 options;A);$8,390.;B);$8,410.;C);$2,570.;D);$2,730.;Save;Question 5 (2 points);The following data applies to a particular item of merchandise;On hand at start of period;300;$5.10;1st purchase;500;5.20;2nd purchase;700;5.30;3rd purchase;600;5.50;Number of units available for sale;2,100;On hand at end of period;500;Number of units sold during period;1,600;Of the 1,600 units sold during the period, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase, and 200 from the last purchase. Using the weighted-average costing method, the value of the inventory on hand at the end of the period would be;Question 5 options;A);$2,730.;B);$2,650.;C);$2,530.;D);$2,750.;Save;Question 6 (2 points);The following data applies to a particular item of merchandise;On hand at start of period;300;$5.10;1st purchase;500;5.20;2nd purchase;700;5.30;3rd purchase;600;5.50;Number of units available for sale;2,100;On hand at end of period;500;Number of units sold during period;1,600;Of the 1,600 units sold during the period, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase, and 200 from the last purchase. Using the specific identification costing method, the amount of the cost of goods sold would be;Question 6 options;A);$2,730.;B);$13,870.;C);$11,140.;D);$8,410.;Save;Question 7 (2 points);An error in the reported inventory will cause errors in all of the following EXCEPT;Question 7 options;A);the cash account.;B);the statement of owner's equity.;C);the following year's financial statements.;D);the balance sheet.;Save;Question 8 (2 points);The following data applies to a particular item of merchandise;On hand at start of period;300;$5.10;1st purchase;500;5.20;2nd purchase;700;5.30;3rd purchase;600;5.50;Number of units available for sale;2,100;On hand at end of period;500;Number of units sold during period;1,600;Of the 1,600 units sold during the period, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase, and 200 from the last purchase. Using the last-in, first-out costing method, the value of the inventory on hand at the end of the period would be;Question 8 options;A);$8,570.;B);$2,570.;C);$2,730.;D);$2,750.;Save;Question 9 (2 points);When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include;Question 9 options;A);debiting Cost of Goods Sold and crediting Sales.;B);debiting Accounts Receivable and crediting Cost of Goods Sold.;C);debiting Accounts Receivable and crediting Sales.;D);debiting Accounts Receivable and crediting Merchandise Inventory.;Save;Question 10 (2 points);Refer to the following data;Net sales, first month;$13,000;Normal gross profit as a percentage of sales;45%;Inventory, start of period;$8,000;Net purchases, first month;$7,000;Using the gross profit method of inventory estimation, the amount of normal gross profit would be;Question 10 options;A);$6,750.;B);$5,850.;C);$15,000.;D);$3,600.;Save;Question 11 (2 points);The merchandise costing method that matches the most current cost of items purchased against the current sales revenue is called the;Question 11 options;A);specific identification method.;B);weighted-average method.;C);last-in, first-out method.;D);first-in, first-out method.;Save;Question 12 (2 points);The following data applies to a particular item of merchandise;On hand at start of period;300;$5.10;1st purchase;500;5.20;2nd purchase;700;5.30;3rd purchase;600;5.50;Number of units available for sale;2,100;On hand at end of period;500;Number of units sold during period;1,600;Of the 1,600 units sold during the period, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase, and 200 from the last purchase. Using the first-in, first-out costing method, the value of the inventory on hand at the end of the period would be;Question 12 options;A);$2,730.;B);$2,750.;C);$2,570.;D);$8,390.;Save;Question 13 (2 points);Question 13 options;A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Printing Delight Co. for the time period, January 1, 20-- through March 15, 20--;Beginning inventory, January 1, 20--;$ 45,000;Net purchases, January 1, through March 15, 20--;252,000;Net sales, January 1, through March 15, 20--;378,000;Normal gross profit percentage of sales;37%;Fill in the following blanks, using dollar signs and appropriate commas but no decimal places.;The estimated cost of goods sold for the time period January 1 through March 15, 20--, using the gross profit method is. The estimated amount of merchandise inventory destroyed in the fire on March 15, 20--, using the gross profit method, is.Save;Question 14 (2 points);Question 14 options;The following information is taken from the books of All in the Family Center for the first quarter of its fiscal year ending on April 30, 20--;Cost;Retail;Inventory, start of period (January 1, 20--);$ 37,000;$ 66,000;Net purchases during the period;174,000;330,000;Net sales for the period;310,500;Fill in the following blanks, using dollar signs and appropriate commas but no decimal places.;The estimated ending inventory as of April 30, 20--, using the retail inventory method, is. The estimated cost of goods sold for the time period, January 1, through April 30, using the retail inventory method, is.Save;Question 15 (6 points);Question 15 options;The April 1 inventory of Inotech Inc. had a cost of $37,000 and had a retail value of $79,000. During April, merchandise was purchased for $125,000 and marked to sell for $262,500. April sales totaled $201,000.;Calculate the following items using the retail method of inventory estimation. Fill in the blanks using dollar signs and commas but no decimal places.;(1) The retail value of the ending inventory is. (2) The cost of goods sold in April is. (3) The cost of ending inventory is.Save;Question 16 (12 points);Question 16 options;Smart Tech's beginning inventory and purchases for the month of August were as follows;# ofUnits;Cost perUnit;Amount;Beginning inventory;600;$7.00;$ 4,200;First purchase;400;$7.50;3,000;Second purchase;500;$8.00;4,000;Third purchase;300;$8.75;2,625;Number of units available for sale;1,800;$13,825;On hand;400;Number of units sold;1,400;Calculate the total amount to be assigned to cost of goods sold and ending inventory for August 31, using each of the following methods.Fill in the blanks using dollar signs and appropriate commas but no decimal places.;(1) COGS under FIFO is. Ending inventory under FIFO is.;(2) COGS under LIFO is. Ending inventory under LIFO is.;(3) COGS under weighted average is. Ending inventory under weighted average is.Save;Question 17 (6 points);Question 17 options;Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the income statement of the company included the information shown below;Sales;$1,100,000;Cost of goods sold;Merchandise inventory, January 1, 20--;$ 67,000;Purchases;840,000;Goods available for sale;$907,000;Less merchandise inventory, December 31, 20--;130,000;Cost of goods sold;777,000;Gross profit on sales;$ 323,000;Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--. Instead, they had merely estimated the inventory. Under the gross profit method of inventory estimation, determine the following items to check the accuracy of the employees' estimates. Fill in the blanks using dollar signs and appropriate commas but no decimal places.;(1) Gross profit on sales is. (2) Cost of goods sold is. (3) Ending inventory is.Save;Question 18 (2 points);The income summary account, after adjusting entries are posted, reflects the;Question 18 options;A);beginning inventory amount.;B);cash income from business transactions.;C);beginning and ending inventory amounts.;D);ending inventory amount.;Save;Question 19 (2 points);Which of the following accounts is never debited or credited during the accounting period?;Question 19 options;A);Interest Income;B);Merchandise Inventory;C);Purchases Returns and Allowances;D);Owner's Capital;Save;Question 20 (2 points);A beginning inventory of $75,000 is removed from the merchandise inventory account by;Question 20 options;A);debiting $75,000 to Purchases.;B);crediting $75,000 to Merchandise Inventory.;C);crediting $75,000 to Income Summary.;D);debiting $75,000 to Merchandise Inventory.;Save;Question 21 (2 points);During the accounting period, the Unearned Revenue account had a balance of $50,000 for computer equipment and software yet to be delivered. On March 31, a delivery of all of the equipment was made, leaving $5,000 worth of software pending. The correct journal entry to record this activity on March 31 is to;Question 21 options;A);debit Unearned Revenue and credit Revenue for $45,000.;B);debit Cash and credit Unearned Revenue for $45,000.;C);debit Unearned Revenue and credit Revenue for $5,000.;D);debit Computer Equipment and credit Cash for $45,000.;Save;Question 22 (2 points);At the end of the accounting period, the correct entry in the general journal to adjust for ending inventory is to;Question 22 options;A);debit Merchandise Inventory and credit Unearned Revenue.;B);debit Income Summary and credit Merchandise Inventory.;C);debit Other Revenue and credit Income Summary.;D);debit Merchandise Inventory and credit Income Summary.;Save;Question 23 (2 points);In preparing a work sheet, the amounts for the Trial Balance columns are copied from the;Question 23 options;A);current chart of accounts.;B);sales and purchases journal.;C);general ledger.;D);general journal.;Save;Question 24 (2 points);On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents;Question 24 options;A);a net income.;B);an error in the accounting procedures for the period.;C);no gain or loss.;D);a net loss.;Save;Question 25 (2 points);If a difference is found between the physical count and the amount in the perpetual inventory records, an adjusting entry is made to which of the following accounts?;Question 25 options;A);Accounts Payable;B);Purchases;C);Inventory Short and Over;D);Accounts Receivable;Save;Question 26 (2 points);Which of the following is NOT a formal part of the accounting system?;Question 26 options;A);income statement;B);statement of owner's equity;C);balance sheet;D);the work sheet;Save;Question 27 (2 points);A typical account found under the heading of "Revenue" in a chart of accounts is;Question 27 options;A);Freight-In.;B);Purchases.;C);Sales.;D);Cash.;Save;Question 28 (2 points);A trial balance of the general ledger accounts taken after the temporary owner's equity accounts have been closed is usually referred to as a;Question 28 options;A);pre-closing trial balance.;B);subsidiary trial balance.;C);new accounting period trial balance.;D);post-closing trial balance.;Save;Question 29 (2 points);In a multiple-step income statement, operating expenses are subtracted from gross profit to compute;Question 29 options;A);net income.;B);net loss.;C);other income.;D);income from operations.;Save;Question 30 (2 points);The following information was taken from the financial statements of Sunshine City;Total current assets;$ 53,000;Property, plant, and equipment;6,000;Current liabilities;21,000;Long-term liabilities;4,000;Owner's equity;34,000;Beginning inventory;31,000;Ending inventory;33,000;Cost of goods sold;152,000;Net income;42,000;The inventory turnover (rounded to one decimal place) for Sunshine City is;Question 30 options;A);2.2 times.;B);3.0 times.;C);4.8 times.;D);5.0 times.;Save;Question 31 (2 points);Cash and all other assets that may be reasonably expected to be converted to cash or consumed within one year or the normal operating cycle of the business are classified as;Question 31 options;A);temporary investments.;B);marketable securities.;C);current assets.;D);investments.;Save;Question 32 (2 points);Accumulated depreciation amounts are shown as deductions from the;Question 32 options;A);accounts payable account.;B);cost of building and equipment accounts.;C);prepaid insurance account.;D);accounts receivable account.;Save;Question 33 (2 points);Net sales minus cost of goods sold equals;Question 33 options;A);operating income.;B);operating expenses.;C);other expenses.;D);gross profit.;Save;Question 34 (2 points);Reversing entries are made in the;Question 34 options;A);cash receipts journal.;B);sales journal.;C);purchases journal.;D);general journal.;Save;Question 35 (2 points);Those obligations that are due within one year or the normal operating cycle of the business and will be paid with money provided by the current assets are called;Question 35 options;A);long-term liabilities.;B);current liabilities.;C);investments.;D);marketable securities.;Save;Question 36 (2 points);The information needed in journalizing the closing entries is obtained from the;Question 36 options;A);general journal.;B);income statement.;C);work sheet.;D);accounts receivable ledger.;Save;Question 37 (2 points);Information needed in journalizing the first three closing entries is obtained from which of the following work sheet columns?;Question 37 options;A);Adjustments;B);Income Statement;C);Trial Balance;D);Adjusted Trial Balance;Save;Question 38 (8 points);Question 38 options;The Income Statement and Balance Sheet columns below are from the work sheet of Bleeker Street Bounty for the year ended December 31, 20--.Using the work sheet below, compute (a) total current assets, (b) working capital, (c) current ratio, and (d) accounts receivable turnover. (Accounts receivable balance on January 1, 20-- was $23,200). Round to 2 decimal places. All sales are on account.;Bleeker Street Bounty Work Sheet (partial)For the year ended December 31, 20--;Income Statement;Balance Sheet;Account Title;Debit;Credit;Debit;Credit;Cash;12,300;Accounts Receivable;25,000;Merchandise Inventory;16,000;Store Supplies;1,100;Office Supplies;600;Prepaid Insurance;1,500;Store Equipment;66,000;Accumulated Depreciation?Store Equipment;38,000;Office Equipment;18,000;Accumulated Depreciation?Office Equipment;10,000;Accounts Payable;22,300;Salaries Payable;400;Long-Term Notes Payable;36,000;Carlo Perez, Capital;50,600;Carlo Perez, Drawing;32,000;Income Summary;17,000;16,000;Sales;61,500;Sales Returns and Allowances;500;Purchases;23,000;Purchases Returns and Allowances;700;Purchases Discounts;400;Sales Salary Expense (selling);9,200;Office Salary Expense (general);10,500;Store Supplies Expense (selling);300;Office Supplies Expense (general);400;Insurance Expense (general);800;Depreciation Expense?Store Equipment (selling);800;Depreciation Expense?Office Equipment (general);900;63,400;78,600;172,500;157,300;Net Income;15,200;15,200;78,600;78,600;172,500;172,500;Fill in the blanks below using dollar signs and appropriate commas but no decimal places for any dollar amounts.(a) Total current assets = (b) Total working capital = (c) The current ratio (round to two decimal places) = to 1.(d) Accounts receivable turnover =;times. (Accounts receivable balance on January 1, 20-- was $23,200). Round to 2 decimal places. All sales are on account.)Save

 

Paper#43855 | Written in 18-Jul-2015

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