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32) Proof that the dollar amount of the debits e...

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32) Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means: A) all accounts have their correct balances in the ledger. B) all of the information from the journal was correctly transferred to the ledger. C) only that the debit dollar amounts equal the credit dollar amounts. D) only the ledger is accurate; the journal may be incorrect 33) A debit to a revenue account was posted to an asset account. This would cause: A) revenue to be understated. B) liabilities to be understated. C) expense to be understated. D) assets to be overstated. 34) The general journal entry to record an exchange of assets would most com- monly include: A) A debit to Cash and a credit to Fees Earned. B) A debit to Fees Earned and a credit to Accounts Receivable. C) A debit to Supplies and a credit to Accounts Payable. D) A debit to Cash and a credit to Accounts Receivable. 35) If Cash has been debited, it is most likely that: A) the business borrowed cash from the bank. B) a charge customer made a payment. C) the owner made an investment. D) All of these are possible. 36) If you had purchased $500 of supplies during the month and at the end of the month you had $300 on hand, the adjustment for Supplies would be: A) $100. B) $300. C) $200. D) $500. 37) If the adjustment for Supplies used during the period was not made: A) expenses would be too high. B) revenue would be too high. C) expenses would be too low. D) asset Office Supplies would be too low. 38) Andrew Antiques showed store supplies available during the year of $400. A count of the supplies on hand as of May 31 is $150. The adjusting entry for Store Supplies would include: A) a debit to Store Supplies for $150. B) a credit to Store Supplies Expense for $250. C) a debit to Store Supplies Expense for $250. D) a credit to Store Supplies Expense for $150. 39) Roy purchased a one-year insurance policy for $2,400. The adjusting entry for one month would include a: A) debit to Prepaid Insurance, $200. B) credit to Cash, $200. C) debit to Insurance Expense, $200. D) None of these answers are correct. 40) The capital balance amount shown in the balance sheet column of the work- sheet represents: A) beginning capital plus net income. B) beginning capital plus investments to capital. C) beginning capital less withdrawals. D) beginning capital plus net income less withdrawal. 41) When counting the supplies a file cabinet was forgotten and the adjustment was made based on the incorrect count. This would: A) overstate the period?s net income. B) overstate the end of period assets. C) understate the end of period assets. D) None of these are correct. 42) The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would: A) understate the end of period liabilities. B) overstate the period?s net income. C) overstate the end of period liabilities. D) None of these are correct. 43) The purchase of equipment will require an adjustment of: A) increasing the total assets and increasing the total expenses at the end of the month. B) decreasing the total assets and decreasing the total expenses at the end of the month. C) decreasing the total assets and increasing the total expenses at the end of the month. D) none of the above. 44) Which of the following would cause an asset to be debited and a liability credited? A) Recorded the adjustment for the expiration of the insurance policy B) Recorded the adjustment for the expiration of rent C) Purchased supplies on account D) None of these would have that effect. 45) Which of the following would cause a liability to be credited and an expense debited? A) Recorded the adjustment for the accrual of wages B) It is the end of the month and no utility bill has been received C) Recorded an accrued expense D) All of the above would have that effect. 46) The adjusting entries are journalized: A) whenever time permits. B) before preparing financial reports. C) before the next accounting period starts. D) at the beginning of the accounting period. 48) An important purpose of closing entries is to: A) set nominal account balances to zero to begin the next period. B) adjust the accounts in the ledger. C) help in preparing financial statement. D) set real account balances to zero to begin the next period. 49) Which of the following accounts will not be closed to Income Summary at the end of the fiscal year? A) Word Processing Fees B) Smith, Withdrawals C) Salaries Expense D) Supplies Expense 54) When the expenses are closed: A) Owner?s Capital will be debited. B) Income Summary will be credited. C) Income Summary will be debited. D) None of these are correct. 55) Closed the Fees Earned account. A) Owner?s capital would decrease. B) Owner?s capital would remain the same. C) Owner?s capital would increase. D) None of these are correct. 58) A check for $78 is incorrectly recorded on the checkbook stub as $87. The $9 error should be shown on the bank reconciliation as: A) deducted from the balance per bank statement. B) added to the balance per bank statement. C) added to the balance per books. D) deducted from the balance per books. 59) Which of the following bank reconciliation items would not be reflected in a journal entry? A) Outstanding checks B) NSF customer check C) Collection of a note by the bank D) Bank service charges 63) The entry to replenish the petty cash fund debited Supplies instead of Post- age Expense. This would cause: A) expenses to be overstated. B) revenues to be understated. C) expenses to be understated. D) revenues to be overstated. 64) An error recording a $72 check as $27 would be included on the bank recon- ciliation as a(n): A) subtraction from the balance per bank. B) subtraction from the balance per books. C) addition to the balance per books. D) addition to the balance per bank.. 65) The amount of federal income tax withheld is computed using the: A) FICA tax tables. B) net earnings and Form W-4. C) employee?s income, number of allowances, and marital status. D) W-2 charts. 67) The amount of FICA-OASDI and FICA-Medicare taxes an employer must pay is: A) equal to the amount withheld from the employee. B) not dependent on the amount withheld from the employee. C) greater than the amount withheld from the employee. D) less than the amount withheld from the employee. 68) The payroll register includes sections for recording: A) assets, liabilities, equity, revenues, and expenses. B) gross pay, deductions, and net pay. C) accrued expenses, unearned revenues, and net pay. D) trade accounts receivable and short-term note receivables. 71) When calculating the payroll the clerk forgot about the tax ceilings. A) SUTA could be overstated. B) FICA-OASDI could be overstated. C) FUTA could be overstated. D) All of these could be correct. 72) The accounting department forgot to estimate the worker?s compensation, this will cause: A) the net income to be understated. B) the liabilities to be overstated. C) the assets to be overstated. D) the net income to be overstated. 73) Posting the payroll entry comes from the: A) employee?s earnings record. B) journal. C) payroll register. D) None of these answers are correct. 74) The entry to record the employer?s payroll taxes would include: A) a credit to State and Federal Unemployment Tax Payable. B) a credit to FICA-Social Security Taxes Payable and FICA-Medicare Taxes Pay- able. C) a debit to Payroll Taxes Expense. D) All of these answers are correct. 75) The entry to record the payroll tax expense would include: A) a credit to Cash. B) a credit to FICA (Social Security and Medicare) Taxes Payable. C) a credit to Federal Income Taxes Payable. D) a credit to Wages Payable. 80) The normal balance of the Sales Returns and Allowances account is: A) a debit. B) zero. C) a credit. D) It does not have a normal balance. 81) Jane?s Bakery sold 50 pies at $8.00 each to a charge customer, terms 2/10, n/30. Which entry is required to record this transaction? A) Debit Accounts Receivable for $400; credit Bakery Sales for $400 B) Debit Accounts Receivable for $392; credit Bakery Sales for $392 C) Debit Cash for $392; credit Bakery Sales for $392 D) Debit Accounts Receivable for $392; debit Sales Discount for $8, and credit Bakery Sales for $400 82) Compass Outfitters sold goods for $300 to a charge customer. The customer returned for credit $120 worth of goods. Which entry is required to record the return transaction? A) Debit Sales Returns and Allowances $120; credit Accounts Receivable for $180 B) Debit Accounts Receivable $180; credit Sales Returns and Allowances for $120 C) Debit Sales $180; credit Sales Returns and Allowances $120 D) Debit Sales Returns and Allowances for $120; credit Sales for $180 83) Accounts of a single type are kept in this ledger: A) subsidiary ledger. B) supplemental ledger. C) additional ledger. D) None of these answers are correct. 84) Payment for merchandise sold on credit for $100 subject to 2/10 n/30 was received within the discount period - $98 was received. This was recorded with a debit to Sales Discounts for $2, a debit to Cash for $98, and a credit to Accounts Receivable100, but no mention was made of the subsidiary led- ger account. This error will cause: A) the net income for the period to be overstated. B) the net income for the period to be understated. C) the assets to be overstated. D) the control account to not agree with the subsidiary ledger. 90) Purchased office supplies on account. This will be recorded with: A) a debit to a liability and a credit to an asset. B) a credit to a liability and a debit to an asset. C) a credit to an asset and a debit to an expense. D) a debit to an asset and a credit to an expense. 91) The journal entry to record the return of a purchase of inventory under the perpetual system includes a: A) credit to Merchandise Inventory. B) credit to Purchases. C) debit to Purchases Returns and Allowances. D) debit to Merchandise Inventory. 93) Deluth Corporation has a normal gross profit of 40%. The current year?s beginning inventory was $2,000, purchases were $5,000, and retail sales were $6,000. The estimated ending inventory under the gross margin method is: A) $3,600. B) $3,400. C) $3,450. D) $4,500. 96) What would the depreciation be in year 2 for a computer system using the straight-line method when cost is $5,000, residual value is $1,000, and the expected life is 4 years? A) $1,250 B) $800 C) $2,000 D) $1,000 99) When an asset is exchanged for a similar asset and a gain results, under accounting rules the gain is: A) subtracted from the cost of the new asset. B) credited to Gain on Exchange of an Asset. C) absorbed into the cost of the new asset. D) recorded in the other income section of the income statement.

 

Paper#9546 | Written in 18-Jul-2015

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