A condition in which a company's expenses exceed its revenues. What does that mean:

A condition in which a company's expenses exceed its revenues. What does that mean: a. A loss b. A gain c. A profit d. A net income e. A net sale Answer:...

A method of valuing inventory in which the items acquired last are treated as the ones sold first. What is it?

A method of valuing inventory in which the items acquired last are treated as the ones sold first. What is it? a. FIFO b. LIFO c. Weighted Average d....

A method of valuing the cost of goods sold that uses the cost of the oldest items in inventory first. What is it?

A method of valuing the cost of goods sold that uses the cost of the oldest items in inventory first. What is it? a. FIFO b. LIFO c. Weighted Average d....

The value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation is definition of:

The value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation is definition of: a. Depreciation cost b. Asset...

Calculated as sales minus all costs directly related to those sales. It is about:

Calculated as sales minus all costs directly related to those sales. It is about: a. Cost of goods sold b. Expense c. Revenue d. Gross profit e....

Accounts receivable that may become uncollectible and will be written off , is known as:

Accounts receivable that may become uncollectible and will be written off , is known as: a. Expense b. Account receivable c. Bad debts d. Debts e....

Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent is the definition of:

Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent is the definition of: a. Tangible assets b....

Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability.

Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability. a....

Accounts receivable refers:

Accounts receivable refers: a. Money which is owed to a company by a customer for products and services provided on credit b. Money which is owed...

John, the owner of Matt company, withdrew $8,000 from the business during the current year. The entry to close the withdrawals account at the end of the year, is:

John, the owner of Matt company, withdrew $8,000 from the business during the current year. The entry to close the withdrawals account at the end of...

J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year, is:

J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the...

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to...

Repayment of the loan for the bank $ 2,000 cash

Repayment of the loan for the bank $ 2,000 cash a. Debit cash, credit Expense b. Credit cash , debit expense c. Debit cash, credit loan d. Credit...

Which accounts used to record amounts owed to suppliers for products or services purchased on credit?

Which accounts used to record amounts owed to suppliers for products or services purchased on credit? a. Unearned revenue b. Trade account receivable c....

A company purchased a plant asset for $45,000. The asset has an estimated salvage value of $6,000, and an estimated useful life of 10 years. The annual depreciation expense using the straight-line method is

A company purchased a plant asset for $45,000. The asset has an estimated salvage value of $6,000, and an estimated useful life of 10 years. The annual...

Book value is equal to:

Book value is equal to: a. Total asset cost minus depreciation expense b. Total asset cost plus depreciation expense c. Total asset plus depreciation...

Which statement is true?

Which statement is true? a. Total asset cost plus accumulated depreciation equals book value. b. Total asset cost minus accumulated depreciation...

Which statement is true?

Which statement is true? a. Assets need to depreciate include vehicle, machine, supplies, buildings b. Assets need to depreciate include van, machine,...

Which of the following assets is not depreciated?

Which of the following assets is not depreciated? a. Vehicle b. Machine c. Inventory d. Buildings e. All of these are depreciated Answer:...

An estimate of an asset's value at the end of its benefit period is called:

An estimate of an asset's value at the end of its benefit period is called: a. Asset at cost b. Book value c. Salvage value d. Depreciation expense e....

Which statement is true:

Which statement is true: a. Merchandise available for sale includes Beginning inventory and ending inventory. b. Merchandise available for sale includes...

Net Sales minus Cost of Goods Sold equals to:

Net Sales minus Cost of Goods Sold equals to: a. Profit b. Gross profit c. Net income d. Profit before tax e. Profit after tax Answer:...

Which are expected to be sold collected or used within one year or the company's operating cycle?

Which are expected to be sold collected or used within one year or the company's operating cycle? a. Non - Current assets b. Non - Current liabilities c....

A business is accounted for separately from other business entities, including its owner.

A business is accounted for separately from other business entities, including its owner. a. Going-Concern Assumption b. Business Entity Assumption c....

A company must record its expenses incurred to generate the revenue reported. It is about:

A company must record its expenses incurred to generate the revenue reported. It is about: a. Going-Concern Assumption b. Business Entity Assumption c....

Reflects assumption that the business will continue operating instead of being closed or sold. It is about:

Reflects assumption that the business will continue operating instead of being closed or sold. It is about: a. Going-Concern Assumption b. Business...

Which discounts are provided to customers as an incentive for them to pay early

Which discounts are provided to customers as an incentive for them to pay early a. Credit discounts b. Trade discounts c. Purchase discounts d. Payment...

Which discounts are offered based on quantities purchased

Which discounts are offered based on quantities purchased a. Credit discounts b. Trade discounts c. Purchase discounts d. Payment discounts e. None...

The inventory system continually updates accounting records for merchandising transactions.

The inventory system continually updates accounting records for merchandising transactions. a. FIFO inventory system b. LIFO inventory system c....

The inventory system that updates the accounting records for merchandise transactions only at the end of a period. This statement is about:The inventory system that updates the accounting records for merchandise transactions only at the end of a period. This statement is about:

The inventory system that updates the accounting records for merchandise transactions only at the end of a period. This statement is about: a. FIFO...

Which statement is true:

Which statement is true: a. A wholesaler is an intermediary that buys products from manufacturers or wholesalers and sells them to consumers. b. A...

All expenditures necessary to bring an item to a salable condition and location. This statement is the definition of:

All expenditures necessary to bring an item to a salable condition and location. This statement is the definition of: a. Inventory costs b. Cost...

The buyer is responsible for the costs of shipping when goods are sold with the terms FOB

The buyer is responsible for the costs of shipping when goods are sold with the terms FOB a. Shipping board b. Shipping point c. Destination d. On...

The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB:

The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB: a. Shipping board b. Shipping point c....

On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much would the seller receive if the buyer pays on June 8?

On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much would the seller receive if the buyer pays on June 8? a. 790 b. 792 c....

When a sale is made with the credit terms of 2/10, net 30, the "2" refers to the:

When a sale is made with the credit terms of 2/10, net 30, the "2" refers to the: a. Interest rate b. Selling day c. Payment Due date d. Discount...

Which statement is about Mary's capital:

Which statement is about Mary's capital: a. The owner's equity account that contains the amount invested in the sole proprietorship by Mary Smith...

A liability account that reports amounts received in advance of providing goods or services. It is about:

A liability account that reports amounts received in advance of providing goods or services. It is about: a. Prepaid expense b. Liability c. Revenue d....

Which statement is true?

Which statement is true? a. A contra-asset account such as Accumulated Depreciation will likely have debit balance b. A contra-asset account such...

Which account is noncurrent or long-term asset

Which account is noncurrent or long-term asset a. Equipment, supplies, vehicle b. Equipment, building, vehicle c. Equipment, prepaid expense, vehicle d....

Which statement is true:

Which statement is true: a. Generally when an expense or withdraw is involved in a transaction, it will be debit b. Generally when an expense or...

Which statement is true:

Which statement is true: a. Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle. b. Depreciation...

Unearned Revenues is what type of account?

Unearned Revenues is what type of account? a. Asset b. Liability c. Owner equity d. None of these e. Net Asset Answer: ...

Under the accrual basis of accounting, expenses are reported in the accounting period when the

Under the accrual basis of accounting, expenses are reported in the accounting period when the a. Cash is paid for purchasing b. Expense incurred c....

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Under the accrual basis of accounting, revenues are reported in the accounting period when the a. Cash is received b. Service or goods have been...

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the a. Balance sheet b. Income...

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the a. Balance sheet b. Income statement c....

A record of financial transactions in order by date and often defined as the book of original entry. This statement is about:

A record of financial transactions in order by date and often defined as the book of original entry. This statement is about: a. None of these b....

The Income Summary account is:

The Income Summary account is: a. Temporary account that need to be closed at the end of accounting period. b. Permanent account that need to be...

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is: a. Debit Unpaid Salaries and credit...

On May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include:

On May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was...

PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include:

PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company...

On April 30, 2009, a three-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31, 2009?

On April 30, 2009, a three-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense...

Unearned revenue is reported in the financial statements as:

Unearned revenue is reported in the financial statements as: a. Revenue on the balance sheet. b. A liability on the balance sheet. c. Unearned revenue...

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:

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...

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?

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...

On April 1, 2009, 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, 2009?

On April 1, 2009, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance...

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the...

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies...

The expense created by allocating the cost of fixed assets to the periods in which they are used, representing the expense of using the assets, is called

The expense created by allocating the cost of fixed assets to the periods in which they are used, representing the expense of using the assets, is called a....

An adjusting entry could be made for each of the following except:

An adjusting entry could be made for each of the following except: a. Prepaid expenses. b. Depreciation. c. Unearned revenues. d. Cost of goods sold. e....

An adjusting entry could be made for each of the following except:

An adjusting entry could be made for each of the following except: a. Prepaid expenses. b. Depreciation. c. Unearned revenues. d. Revenue. e. Accrued...

An adjusting entry could be made for each of the following except:

An adjusting entry could be made for each of the following except: a. Prepaid expenses. b. Depreciation. c. Unearned revenues. d. Account payable. e....

An adjusting entry could be made for each of the following except:

An adjusting entry could be made for each of the following except: a. Prepaid expenses. b. Depreciation. c. Cash. d. Unearned revenues. e. Accrued...

An adjusting entry could be made for each of the following except:

An adjusting entry could be made for each of the following except: a. Prepaid expenses. b. Depreciation. c. Supplies d. Unearned revenues. e. Owner...

An adjusting entry could be made for each of the following except:

An adjusting entry could be made for each of the following except: a. Prepaid expenses. b. Depreciation. c. Owner withdrawals. d. Unearned revenues. e....

Which of the following statements is incorrect?

Which of the following statements is incorrect? a. Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded...

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of: a. Items that require contra accounts. b....

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: a....

Adjusting entries are journal entries made at the end of an accounting period for the purpose of:

Adjusting entries are journal entries made at the end of an accounting period for the purpose of: a. Updating liability and asset accounts to their...

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called:

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is...

Adjusting entries:

Adjusting entries: a. Affect only income statement accounts. b. Affect only balance sheet accounts. c. Affect both income statement and balance sheet...

The accounting principle that requires revenue to be reported when earned is the:

The accounting principle that requires revenue to be reported when earned is the: a. Matching principle. b. Revenue recognition principle. c. Time...

At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January,...

Zed Bennett opened an art gallery and as a dealer completed these transactions:

Zed Bennett opened an art gallery and as a dealer completed these transactions: 1. Started the gallery, Artery, by investing $40,000 cash and equipment...

If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this...

The following transactions occurred during July:

The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment...

During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance?

During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800....

On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?

On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000...

On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?

On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200...

An asset created by prepayment of an expense is:

An asset created by prepayment of an expense is: a. Recorded as a debit to an unearned revenue account. b. Recorded as a debit to a prepaid expense...

Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:

Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a: a. Debit to Accounts Payable. b....

A debit is used to record:

A debit is used to record: a. A decrease in an asset account. b. A decrease in an expense account. c. An increase in a revenue account. d. An increase...

Of the following accounts, the one that normally has a credit balance is:

Of the following accounts, the one that normally has a credit balance is: a. Cash. b. Office Equipment. c. Sales Salaries Payable. d. Owner, Withdrawals. e....

Which is true about An account balance:

Which is true about An account balance: a. Always a debit. b. Is the difference between the total debits and total credits for an account c. Is the...

Which of the following statements is correct?

Which of the following statements is correct? a. The left side of a T-account is the credit side. b. Debits decrease asset and expense accounts, and...

A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a:

A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a: a. Withdrawals...

A credit is used to record:

A credit is used to record: a. A decrease in an expense account. b. A decrease in an asset account. c. An increase in an unearned revenue account. d....

Which of the following statements is incorrect?

Which of the following statements is incorrect? a. The normal balance of accounts receivable is a debit. b. The normal balance of owner's withdrawals...

The right side of a T-account is a(n):

The right side of a T-account is a(n): a. Debit. b. Increase. c. Credit. d. Decrease. e. Account balance. Answer:...

A debit is:

A debit is: a. An increase in an account. b. The right-hand side of a T-account. c. A decrease in an account. d. The left-hand side of a T-account. e....

Prepaid expenses are:

Prepaid expenses are: a. Payments made for products and services that do not ever expire. b. Classified as liabilities on the balance sheet. c. Decreases...

Unearned revenues are:

Unearned revenues are: a. Revenues that have been earned and received in cash. b. Revenues that have been earned but not yet collected in cash. c....

The account used to record the transfers of assets from a business to its owner is:

The account used to record the transfers of assets from a business to its owner is: a. A revenue account. b. The owner's withdrawals account. c....

Withdrawal account, revenues account, expenses account and income summary account are

Withdrawal account, revenues account, expenses account and income summary account are a. Permanent accounts b. Temporary accounts c. Equity accounts d....

An account used to record the owner's investments in the business is called a(n):

An account used to record the owner's investments in the business is called a(n): a. Withdrawals account. b. Capital account. c. Revenue account. d....

A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity?

A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount...

Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The...

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n): a. Operating activity. b. Investing...

A company acquires equipment for $75,000 cash. This represents a(n):

A company acquires equipment for $75,000 cash. This represents a(n): a. Operating activity. b. Investing activity. c. Financing activity. d. Revenue...

A balance sheet lists:

A balance sheet lists: a. The types and amounts of the revenues and expenses of a business. b. Only the information about what happened to equity...

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called:

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: a....

If assets are $365,000 and equity is $120,000, then liabilities are:

If assets are $365,000 and equity is $120,000, then liabilities are: a. $120,000. b. $245,000. c. $365,000. d. $485,000. e. $610,000. Answer:...

If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?

If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? a. Assets would decrease $38,000,...

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was...

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business...

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same...

Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:

Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are: a....

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? a. +$10,000...

Assets created by selling goods and services on credit are:

Assets created by selling goods and services on credit are: a. Accounts payable. b. Accounts receivable. c. Liabilities. d. Expenses e. Equity. Answer:...

On June 30 of the current year, the assets and liabilities of Phoenix Phildel are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?

On June 30 of the current year, the assets and liabilities of Phoenix Phildel are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650;...

The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?

The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners? a. $900,000. b. $700,000. c. $500,000. d....

Distributions by a business to its owners are called:

Distributions by a business to its owners are called: a. Withdrawals. b. Expenses. c. Assets. d. Retained earnings. e. Net Income. Answer:...

A payment to an owner for personal use is called a(n):

A payment to an owner for personal use is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Contribution. e. Investment. Answer:...

Which of the following statements is true about assets?

Which of the following statements is true about assets? a. They are economic resources owned or controlled by the business. b. They are expected...

Another name for equity is:

Another name for equity is: a. Net income. b. Expenses. c. Net asset. d. Revenue. e. Net loss. Answer:...

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as...

Decreases in equity that represent costs of assets or services used to earn revenues are called:

Decreases in equity that represent costs of assets or services used to earn revenues are called: a. Liabilities. b. Equity. c. Withdrawals. d. Expenses. e....

Creditors' claims on the assets of a company are called:

Creditors' claims on the assets of a company are called: a. Net losses. b. Expenses. c. Revenues. d. Equity. e. Liabilities. Answer:...

The difference between a company's assets and its liabilities, or net assets is:

The difference between a company's assets and its liabilities, or net assets is: a. Net income. b. Expense. c. Equity. d. Revenue. e. Net loss. Answer:...

Gross increases in equity from a company's earnings activities are:

Gross increases in equity from a company's earnings activities are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e. Expenses. Answer:...

Resources owned or controlled by a company that are expected to yield future benefits are:

Resources owned or controlled by a company that are expected to yield future benefits are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e....

If equity is $300,000 and liabilities are $192,000, then assets equal:

If equity is $300,000 and liabilities are $192,000, then assets equal: a. $108,000. b. $192,000. c. $300,000. d. $492,000. e. $792,000. Answer:...

Net Income:

Net Income: a. Decreases equity. b. Represents the amount of assets owners put into a business. c. Equals assets minus liabilities. d. Is the excess...

An example of an investing activity is

An example of an investing activity is a. Paying wages of employees. b. Withdrawals by the owner. c. Purchase of land. d. Selling inventory. e. Contribution...

Operating activities:

Operating activities: a. Are the means organizations use to pay for resources like land, buildings and equipment. b. Involve using resources to research,...

An example of an operating activity is:

An example of an operating activity is: a. Paying wages. b. Purchasing office equipment. c. Borrowing money from a bank. d. Selling stock. e. Paying...

An example of a financing activity is:

An example of a financing activity is: a. Buying office supplies. b. Obtaining a long-term loan. c. Buying office equipment. d. Selling inventory. e....

Which of the following accounting principles would require that all goods and services purchased should be recorded at cost?

Which of the following accounting principles would require that all goods and services purchased should be recorded at cost? a. Going-concern principle. b....

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless...

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is...

External users of accounting information include:

External users of accounting information include: a. Shareholders. b. Customers. c. Creditors. d. Government regulators. e. All of these. Answer:...

Internal users of accounting information include:

Internal users of accounting information include: a. Shareholders. b. Managers. c. Lenders. d. Suppliers. e. Customers. Answer: ...

Accounting is an information and measurement system that:

Accounting is an information and measurement system that: a. Identifies business activities. b. Records business activities. c. Communicates business...

Lomax Enterprises purchased a depreciable asset for $20,000 on January 1, 2008. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on June 30, 2011?

Lomax Enterprises purchased a depreciable asset for $20,000 on January 1, 2008. The asset will be depreciated using the straight-line method over its...

Thomas Enterprises purchased a depreciable asset on January 1, 2008 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. Balance of accumulated depreciation of this asset at the end of 2009 is

Thomas Enterprises purchased a depreciable asset on January 1, 2008 at a cost of $100,000. The asset is expected to have a salvage value of $15,000...

Orange Company purchased equipment on July 1 for $28,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $4,500, the amount of monthly depreciation expense Nelson should recognize is:

Orange Company purchased equipment on July 1 for $28,500 and decided to depreciate the equipment on the straight-line method over its useful life of...

A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000, and had a five-year useful life. What is the depreciation expense for one year?

A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000, and had a five-year useful life....

A vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. The depreciation expense (using straight line method) for a year is:

A vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. The depreciation expense (using...

The company has $1679 credit sales at year end. Experiences show that 4% of credit sales may not be collectable. What is the estimated bad debt expense to be record at year end?

The company has $1679 credit sales at year end. Experiences show that 4% of credit sales may not be collectable. What is the estimated bad debt expense...

The amount due on the maturity date of a $12,000, 60-day 8%, note receivable is:

The amount due on the maturity date of a $12,000, 60-day 8%, note receivable is: a. $6,000. b. $12,000. c. $160. d. $12,160. e. $5,920. Answer:...

Electron borrowed $15,000 cash from TechCom by signing a promissory note. TechCom's entry to record the transaction should include a:

Electron borrowed $15,000 cash from TechCom by signing a promissory note. TechCom's entry to record the transaction should include a: a. Debit to...

A company has $20,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts is $800. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

A company has $20,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests...

Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote off the $3,000 uncollectible account of its customer, P. Best. The journal entry on May 3 is:

Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote off the $3,000 uncollectible account...

Which of the following is not a category or element of the balance sheet?

Which of the following is not a category or element of the balance sheet? a. Expense b. Liabilities c. Assets d. Account payable e. Loan Answer:...

Which of the following is a liability?

Which of the following is a liability? a. Account payable b. Account receivable c. Cash d. Inventory e. expense Answer: ...

The properties used in operation activities of a business is call:

The properties used in operation activities of a business is call: a. Revenue b. Withdrawal c. Assets d. Expense e. Liabilities Answer:...

Which of the following is not considered as subcategory of owner's Equity?

Which of the following is not considered as subcategory of owner's Equity? a. Revenue b. Withdrawal c. Assets d. Expense e. Contributed capital Answer:...

A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased...

A company that uses a perpetual inventory system made the following cash purchases and sales:

A company that uses a perpetual inventory system made the following cash purchases and sales: Jan, 1: Purchased 100 units at $10 per unit. Feb, 5:...

A company that uses a perpetual inventory system made the following cash purchases and sales:

A company that uses a perpetual inventory system made the following cash purchases and sales: Jan, 1: Purchased 100 units at $10 per unit. Feb, 5: Purchased...

March, 16: Sold 40 units for $ 16 per unit. Prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is used.

March, 16: Sold 40 units for $ 16 per unit. Prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is...

A company had inventory of 15 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 12 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

A company had inventory of 15 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased...

A company has inventory of 20 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 15 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO periodic inventory method, what is the value of Cost of goods sold on August 15?

A company has inventory of 20 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased...

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of ending inventories?

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using...

Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method.

Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. June, 1: Beginning inventory...

Acme-Jones Company uses a weighted-average perpetual inventory system.

Acme-Jones Company uses a weighted-average perpetual inventory system. August 2, 8 units were purchased at $12 per unit. August 18, 15 units were purchased...

A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $21 each. On November 6 it purchased 15 units at $25 each. On November 8, it sold 20 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 20 units sold?

A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $21 each. On November 6 it purchased...

A company has inventory of 15 units at a cost of $2 each on August 1. On August 5, it purchased 10 units at $3 per unit. On August 12 it purchased 20 units at $4 per unit. On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

A company has inventory of 15 units at a cost of $2 each on August 1. On August 5, it purchased 10 units at $3 per unit. On August 12 it purchased 20...

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold?

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using...

Acme-Jones Corporation uses a weighted-average perpetual inventory system.

Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 10 units were purchased at $12 per unit. August 18, 15 units were...

A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased...

A company had the following purchases during the current year:

A company had the following purchases during the current year: Jan: 10 units at $ 120 Feb: 20 units at $130 May: 15 units at $140 Sep: 12 units at...

Acceptable inventory methods include:

Acceptable inventory methods include: a. LIFO method. b. FIFO method. c. Specific identification method. d. Weighted average method. e. All of these. Answer:...

An overstatement of ending inventory will cause

An overstatement of ending inventory will cause a. An overstatement of assets and equity on the balance sheet. b. An understatement of assets and...

Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used?

Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether...

The inventory valuation method that results in the lowest taxable income in a period of inflation is:

The inventory valuation method that results in the lowest taxable income in a period of inflation is: a. LIFO method. b. FIFO method. c. Weighted-average...

During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is:

During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: a. Specific identification...

Costs included in the Merchandise Inventory account can include:

Costs included in the Merchandise Inventory account can include: a. Invoice price minus any discount. b. Transportation-in. c. Storage. d. Insurance. e....

Merchandise inventory includes:

Merchandise inventory includes: a. All goods owned by a company and held for sale. b. All goods in transit. c. All goods on consignment. d. Only...