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Quiz Note: 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 returns and allowances 4,700 Purchases discounts 1,300 Freight-in 900 Key your response using a dollar sign and appropriate commas but no decimal places. Question 1 options: Save 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-- $57,700 Merchandise Inventory, December 31, 20-- 48,300 Purchases 98,000 Purchases Returns and Allowances 6,100 Purchases Discounts 8,175 Freight-In 1,100 Question 2 options: Save 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: # of Units Cost per Unit 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 -------------------------------------------------------------------------------- Save All ResponsesGo To Submit Quiz,Quiz Note: 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 returns and allowances 4,700 Purchases discounts 1,300 Freight-in 900 Key your response using a dollar sign and appropriate commas but no decimal places. Question 1 options: Save 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-- $57,700 Merchandise Inventory, December 31, 20-- 48,300 Purchases 98,000 Purchases Returns and Allowances 6,100 Purchases Discounts 8,175 Freight-In 1,100 Question 2 options: Save 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: # of Units Cost per Unit 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

 

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