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1. A 10-column spreadsheet used to draft a compan...

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1. A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements and which is an optional tool in the accounting process is a(n): (Points : 2) Adjusted trial balance Work sheet Post-closing trial balance Unadjusted trial balance General ledger 2. Based on the following information, determine the current assets, assuming all accounts have a normal balance? Cash $ 6,754 Dividends $ 2,000 Accounts receivable $ 13,733 Consulting fees earned $ 13,718 Office supplies $ 2,625 Rent expense $ 3,673 Land $ 37,153 Salaries expense $ 6,642 Office equipment $ 14,535 Telephone expense $ 560 Accounts payable $ 6,463 Miscellaneous expense $ 280 Common stock $ 54,490 Retained Earnings ? (Points : 2) $74,800 $37,647 $60,265 $23,112 3. A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: (Points : 2) Debit Unpaid Salaries $600 and credit Salaries Payable $600 Debit Salaries Expense $400 and credit Salaries Payable $400 Debit Salaries Expense $600 and credit Salaries Payable $600 Debit Salaries Payable $400 and credit Salaries Expense $400 4. On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. What is the amount that should be recorded as depreciation on December 31? (Points : 2) $27,000 $24,900 $29,100 $135,000 5. Which of the following accounts would not be on the post closing trial balance? (Points : 2) Accounts Payable Accounts Receivable Common Stock Dividends Retained Earnings 6. A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period? (Points : 2) $2,700 $2,900 $3,300 $3,500 $3,700 7. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: (Points : 2) Debit Prepaid Insurance, $1,800; credit Cash, $1,800 Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440 Debit Prepaid Insurance, $360; credit Insurance Expense, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440 8. A classified balance sheet: (Points : 2) Measures a company's ability to pay its bills on time Organizes assets and liabilities into important subgroups Presents revenues, expenses and net income Reports operating, investing and financing activities Reports the effect of profit and dividends on retained earnings 9. A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011? (Points : 2) $3,250 $3,500 $4,000 $6,500 $7,000 10. Unearned revenue is reported on the financial statements as: (Points : 2) A revenue on the balance sheet A liability on the balance sheet An unearned revenue on the income statement An asset on the balance sheet An operating activity on the statement of cash flows 11. Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance? Cash $ 6,754 Dividends $ 2,000 Accounts receivable $ 13,733 Consulting fees earned $ 13,718 Office supplies $ 2,625 Rent expense $ 3,673 Land $ 37,153 Salaries expense $ 6,642 Office equipment $ 14,535 Telephone expense $ 560 Accounts payable $ 6,463 Miscellaneous expense $ 280 Common stock $ 54,490 Retained Earnings ? (Points : 2) $0 $13,718 $13,155 $13,284 12. A trial balance prepared after adjustments have been recorded is called a(n): (Points : 2) Balance sheet Adjusted trial balance Unadjusted trial balance Classified balance sheet Unclassified balance sheet 13. On April 1, 2011, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2011? (Points : 2) $1,350 $450 $1,012.50 $337.50 $37.50 14. A company earned $2,000 in net income for October. Its net sales for October were $10,000. Its profit margin is: (Points : 2) 2% 20% 200% 500% $8,000 15. The Retained Earnings account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800 and dividends are $9,000, what is the ending balance in the Retained Earnings account after all closing entries are made? (Points : 2) $8,000 $15,400 $23,400 $17,000 $32,400 16. A post-closing trial balance includes: (Points : 2) All ledger accounts with balances, none of which can be temporary accounts All ledger accounts with balances, none of which can be permanent accounts All ledger accounts with balances, which include some temporary and some permanent accounts Only revenue and expense accounts Only asset accounts 17. Financial statements are typically prepared in the following order: (Points : 2) Balance sheet, statement of retained earnings, income statement Statement of retained earnings, balance sheet, income statement Income statement, balance sheet, statement of retained earnings Income statement, statement of retained earnings, balance sheet 18. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: (Points : 2) Cash basis accounting The matching principle The time period principle Accrual basis accounting Revenue basis accounting 19. On June 30, 2011, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31, 2011 for Apricot would include: (Points : 2) A debit to an expense for $1,250 A debit to a prepaid expense for $1,250 A credit to an expense for $3,750 A debit to a prepaid expense for $3,750 A credit to a liability for $1,250 20. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): (Points : 2) Accrued expense Contra account Accrued revenue Intangible asset Adjunct account 21. The adjusted trial balance contains information pertaining to: (Points : 2) Asset accounts only Balance sheet accounts only Income statement accounts only All general ledger accounts Revenue accounts only 22. Which of the following identifies the proper order of the accounting cycle? (Points : 2) Analyze, Journalize, Unadjusted Trial Balance Analyze, Post, Unadjusted Trial Balance Journalize, Post, Adjusted Trial Balance Unadjusted Trial Balance, Adjusted Trial Balance, Close Adjusted Trial Balance, Adjustments, Financial Statements 23. A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year? (Points : 2) $75 $125 $175 $250 $325 24. The difference between the cost of an asset and the accumulated depreciation for that asset is called (Points : 2) Depreciation Expense Unearned Depreciation Prepaid Depreciation Depreciation Value Book Value 25. A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in: (Points : 2) $200 less in net income $200 more in net income $200 difference between the debit and credit columns of the Unadjusted Trial Balance $200 of prepaid insurance An error in the financial statements

 

Paper#8222 | Written in 18-Jul-2015

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