Education homework help

Question 1.1. According to the FASB, the primary objective of financial reporting is to provide information _______. (Points : 1)       regarding the assets and liabilities of a business       to the Securities and Exchange Commission       useful for making investing and lending decisions       regarding the revenues and expenses of a businessQuestion 2.2. Presenting accounting information that is biased and incomplete violates the ________. (Points : 1)       bylaws of the organization       cost principle       faithful representation principle       entity conceptQuestion 3.3. Earning a revenue on account would _______. (Points : 1)       have no effect on owner’s equity       increase owner’s equity       decrease owner’s equity       decrease total assetsQuestion 4.4. The financial statement that presents a summary of the assets, liabilities, and owner’s equity as of a specific date is the _______. (Points : 1)       statement of assets       balance sheet       statement of owner’s equity       statement of cash flowsQuestion 5.5. A written promise for future collections of cash is a _______. (Points : 1)       revenue       account receivable       note receivable       owner withdrawalQuestion 6.6. The payment of an account payable would _______. (Points : 1)       have no effect on total assets       decrease assets and increase owner’s equity       decrease assets and decrease liabilities       decrease assets and increase liabilitiesQuestion 7.7. The payment of utilities each month would _______. (Points : 1)       increase total assets       increase owner’s equity       decrease liabilities       increase expensesQuestion 8.8. The copying of amounts from the journal to the appropriate ledger accounts is referred to as_______. (Points : 1)       posting       journalizing       analyzing       balancingQuestion 9.9. The entry to record the receipt of $650 on account for services previously rendered would be_______. (Points : 1)Accounts Receivable650Service Revenue650Service Revenue650Accounts Receivable650Cash650Accounts Payable650Cash650Accounts Receivable650Question 10.10. All of the following are liabilities except_______. (Points : 1)       note payable       accounts receivable       accounts payable       salaries payableQuestion 11.11. Table 1Following is a random list showing the account balances of various assets, liabilities, revenues, and expenses for Michael’s Landscaping at December 31, 20X5, the end of its first year of operations.Accounts receivable$25,000Accounts payable3,500Salary expense4,500Repairs expense800Truck8,500Equipment6,300Notes payable8,200Cash6,800Supplies expense1,600Service revenue22,800Gasoline expense800Salary payable2,200The owner, Michael Mower, invested $22,600 at the beginning of the year and withdrew $5,000 during the year for personal use.Refer to Table 1. The statement of owner’s equity would show an ending capital balance of _______. (Points : 1)       $36,600       $3,900       $32,600       $32,700Question 12.12. ________ is/are an example of a liability. (Points : 1)       Rent expense       Prepaid expense       Mortgage note payable       Owner distributionsQuestion 13.13. The ________ is the organization that sets standards for financial accounting in the United States. (Points : 1)       PCAOB       FASB       GASB       GAAPQuestion 14.14. Paying for supplies purchased In the previous period on account causes _______. (Points : 1)       assets to increase and owner’s equity to decrease       both assets and liabilities to decrease       assets to increase and owner’s equity to increase       no change in total assetsQuestion 15.15. At the end of the fiscal period, Burton Company omitted the adjusting entry for depreciation on equipment. The effect of this error on the financial statements is to_______. (Points : 1)       understate liabilities       understate owner’s equity       overstate expenses       overstate assetsQuestion 16.16. At year end, no adjusting entry was made to the supplies inventory account. The general ledger balance for supplies inventory was $5000. The actual balance in inventory was $3000. The omission of this adjusting entry caused ________. (Points : 1)       assets to be overstated and liabilities to be overstated       assets to be understated and liabilities to be understated       assets to be overstated and net income to be overstated       assets to be understated and net income to be understatedQuestion 17.17. On May 8th, a customer hires Custom Landscaping to do some yard maintenance. Custom Landscaping arrives on May 10th and completes the job on May 12th. The customer pays the invoice from Custom Landscaping on May 25th. Revenue for this job is recorded on ________. (Points : 1)       May 8th       May 10th       May 12th       May 25thQuestion 18.18. If a required accrued expense adjustment had not been made, the financial statements would have been affected as follows_______. (Points : 1)       net income understated, assets overstated, liabilities unaffected, and owner’s equity understated       net income understated, assets overstated, liabilities understated, and owner’s equity unaffected       net income overstated, assets unaffected, liabilities understated, and owner’s equity overstated       net income overstated, assets overstated, liabilities understated, and owner’s equity overstatedQuestion 19.19. The journal entry to record the payment of a telephone bill immediately upon receipt of the bill would_______. (Points : 1)       have no effect on owner’s equity       increase assets       decrease owner’s equity       decrease liabilitiesQuestion 20.20. $300 receipt of cash on account was recorded as a $500 debit to accounts payable and a $500 credit to cash. This error will cause_______. (Points : 1)       cash to be understated by $800       cash to be overstated $500       cash to be understated $500       cash to be overstated by $800Question 21.21. If the adjusting entry to record revenue earned during the current period when the cash was received in the last accounting period is not recorded_______. (Points : 1)       assets will be overstated       liabilities will be overstated       liabilities will be understated       assets will be understatedQuestion 22.22. Receiving a check for $1,200 from a customer with an account balance of $2,000 would include a_______. (Points : 1)       debit to cash and a credit to accounts receivable for $1,200       debit to cash and a credit to accounts receivable for $800       debit to accounts payable and a credit to cash for $1,200       debit to accounts receivable and a credit to service revenue for $1,200Question 23.23. When cash is received from a customer on account, ________ should be credited under the accrual basis of accounting. (Points : 1)       accounts receivable       service revenue       cash       deferred revenueQuestion 24.24. If the credit amount of an entry to record the purchase of supplies on account was not posted_______. (Points : 1)       assets would be overstated       assets would be understated       owner’s equity would be overstated       liabilities would be understatedQuestion 25.25. Under the cash basis of accounting, the receipt of cash from a customer in advance of performing the service would be credited to a_______. (Points : 1)       revenue account       deferred asset account       deferred revenue account       prepaid asset accountQuestion 26.26. A $75 payment for rent expense was posted as a debit to salary expense and a credit to cash. This error will cause_______. (Points : 1)       the sum of the credits to exceed the sum of the debits       the trial balance to be in balance       the sum of the debits to exceed the sum of the credits by $75       the sum of the debits to exceed the sum of the credits by $150Question 27.27. The withdrawal of cash by the owner for personal use would include a_______. (Points : 1)       credit to the owner’s capital account       credit to the owner’s withdrawals account       debit to the cash account       debit to the owner’s withdrawals accountQuestion 28.28. Purchasing office equipment for cash would include a_______. (Points : 1)       debit to office equipment and a credit to note payable       debit to equipment expense and a credit to cash       debit to office equipment and a debit to accounts payable       debit to office equipment and a credit to cashQuestion 29.29. A building is financed with a note payable to a bank. This transaction would result in ________. (Points : 1)       a credit to cash and a debit to buildings       a credit to buildings and a debit to cash       a debit to buildings and a credit to notes payable       a credit to buildings and a debit to notes payableQuestion 30.30. The account debited when payment is made for equipment purchased previously on account is_______. (Points : 1)       accounts receivable       cash       accounts payable       equipmentQuestion 31.31. Which of the following accounts should be closed to income summary? (Points : 1)       beginning inventory       sales returns and allowances       owner withdrawals       ending inventoryQuestion 32.32. In a periodic inventory system, the quantity of ending inventory is determined by_______. (Points : 1)       subtracting units sold from units purchased       a physical inventory count       looking at the balance in the inventory account       subtracting cost of goods sold from the beginning inventory balanceQuestion 33.33. Table 2Assume the following data for Smithsonian Company for 20X5:Beginning inventory10 units at $70 eachMarch 18 sale8 unitsJune 10 purchase20 units at $80 eachOctober 30 sale15 unitsReferring to Table 2, under the perpetual LIFO method, cost of goods sold on the income statement would be_______. (Points : 1)       $1,760       $540       $1,700       $1,186Question 34.34. Garry Corp uses a perpetual inventory accounting system. Garry Corp has a beginning inventory of 12 units at $15 each on January 1, 20X1. The following inventory transactions occurred during the month of January:January 2nd – purchased 20 units at $16.50 eachJanuary 10th – sold 7 unitsJanuary 17th – purchased 15 units at $17.25 eachJanuary 22nd – sold 25 unitsJanuary 30th – purchased 5 units at $17.50 eachGarry Corp will report ________ for cost of goods sold in January using the FIFO inventory costing method. (Points : 1)       $539.25       $317.00       $510.00       $346.25Question 35.35. A retailer that uses a bar code system to track inventory most likely uses ________. (Points : 1)       a merchandising inventory system       a periodic inventory system       a perpetual inventory system       this cannot be determined from the information providedQuestion 36.36. When an unearned revenue is initially recorded as a revenue, the adjusting entry would include a(n) _______. (Points : 1)       credit to a liability       debit to a liability       debit to an asset       credit to revenueQuestion 37.37. The inventory account shows an ending balance of $20,800. An actual count of inventory reveals $21,200 of inventory on hand. The adjusting entry involves_______. (Points : 1)       credit to inventory for $20,500       credit to cost of goods sold for $20,100       debit to cost of goods sold for $400       debit to inventory for $400Question 38.38. If the cost of an item of inventory is $80, the current selling price is $100, and the current replacement cost is $75, the amount shown in inventory on the balance sheet under the lower-of-cost-or- market rule is_______. (Points : 1)       $75       $80       $100       $75 or $80Question 39.39. Computer programs that link data by means of formulas and functions are referred to as_______. (Points : 1)       inputs       menus       spreadsheets       networksQuestion 40.40. Revenues total $10,200, expenses total $7,300, and the owner’s withdrawals account has a balance of $2,600. What is the balance in the income summary account after all closing entries are completed? (Points : 1)       $2,600 credit       $2,900 debit       $2,900 credit       $0Question 41.41. _______ is a process by which companies produce their financial statements for a specific period. (Points : 1)       Liquidity       The operating cycle       The accounting cycle       PostclosingQuestion 42.42. Table 3Sales revenue$ 750,000Cost of goods sold406,000Beginning inventory75,000Purchase discounts20,000Sales returns and allowances44,000Operating expenses99,000Ending inventory72,000Purchases of inventory415,000Sales discounts25,000William Browning, withdrawals61,000Purchase returns and allowances36,000Refer to Table 3. Gross profit is_______. (Points : 1)       $275,000       $344,000       $300,000       $319,000Question 43.43. Inventory held by a business is a(n) _______ and when sold becomes a(n) _______ (Points : 1)       liability, withdrawal       asset, expense       liability, asset       asset, contra assetQuestion 44.44. When a prepaid expense is initially recorded as an expense, the adjusting entry has the following effect on net income_______. (Points : 1)       increase       decrease       increase or decrease       no effectQuestion 45.45. The journal entry to transfer the cost of purchases to cost of goods sold includes a_______. (Points : 1)       debit to cost of goods sold       debit to inventory       debit to purchases       credit to cost of goods soldQuestion 46.46. The trial balance columns in the accounting worksheet include the effects of ________. (Points : 1)       adjusting entries       journal entries made based on transactions that have occurred throughout the period       closing of temporary accounts       the balance of the income summary account being transferred to the capital accountsQuestion 47.47. Inventory turnover is calculated as_______. (Points : 1)       cost of goods sold minus average inventory       cost of goods sold divided by average inventory       cost of goods sold times average inventory       cost of goods sold plus average inventoryQuestion 48.48. Which subtotals appear on a multi-step income statement but do not appear on a single-step income statement? (Points : 1)       Gross profit and Income from operations       Operating expenses and Net income       Cost of goods sold and Net income       Net sales and cost of goods soldQuestion 49.49. If a company uses LIFO and prices are rising, large purchases of inventory near the end of the year will_______. (Points : 1)       reduce cost of goods sold       increase income taxes paid       reduce the gross profit       have no effect on the amount of cost of goods soldQuestion 50.50. Table 4The following data are for the RoadRunner Corporation, which uses a perpetual inventory system:Sales revenue$600,000Freight-in42,000Beginning inventory77,000Purchase discounts19,000Sales returns and allowances33,000Operating expenses77,000Ending inventory81,000Purchases of inventory415,000Sales discounts35,000Joseph RoadRunner, withdrawals71,000Purchase returns and allowances39,000Refer to Table 4. Gross profit for RoadRunner Company is_______. (Points : 1)       $205,000       $172,000       $60,000       $137,000Question 51.51. Prepaid rent shows a beginning balance of $500 and an ending balance of $2,800. The rent expense account was debited during the adjusting process for $1,800. How much cash was spent for rent? (Points : 1)       $1,500       $4,100       $1,000       $3,300Question 52.52. Marshall Corp uses a perpetual inventory accounting system. Marshall Corp has a beginning inventory of 10 units at $20 each on May 1, 20X1. The following inventory transactions occurred during the month of May:May 2nd – purchased 20 units at $22 eachMay 9th – sold 18 unitsMay 15th – purchased 15 units at $24 eachMarshall Corp will report ________ (rounded) for ending inventory on May 31st using the average-cost inventory costing method. (Points : 1)       $400.00       $600.00       $384.00       $616.00Question 53.53. Which of the following accounts are not closed to the owner’s capital account? (Points : 1)       revenue accounts       the owner’s withdrawals account       the income summary account       all of the aboveQuestion 54.54. Which of the following group of accounts is not closed at the end of the period – the asset, liability, and capital accounts? (Points : 1)       Permanent accounts       Debit accounts       Credit accounts       Temporary accountsQuestion 55.55. A business pays weekly salaries on Friday of $25,000 for a five-day week ending on Friday. Assuming the fiscal period ends on a Thursday, the adjusting entry for accrued salaries would involve a_______. (Points : 1)       debit to salary payable for $5,000       debit to salary expense for $20,000       credit to salary payable for $5,000       credit to salary expense for $25,000Question 56.56. The inventory system that continually discloses the amount of inventory on hand is called_______. (Points : 1)       perpetual       periodic       physical       specific identificationQuestion 57.57. A company’s operating cycle is ________. (Points : 1)       the time required to purchase and sell goods and services and collect cash from customers.       the time required to purchase and sell goods and services       the process by which companies produce their financial statements       a fiscal yearQuestion 58.58. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would include a_______. (Points : 1)       credit to miscellaneous expense       credit to cost of goods sold       credit to inventory       debit to miscellaneous expenseQuestion 59.59. Debts that are due to be paid within one year or within the entity’s operating cycle, whichever is longer, are called_______. (Points : 1)       current liabilities       liquid liabilities       quick liabilities       deferred liabilitiesQuestion 60.60. A company makes a purchase of $2,000 of inventory, subject to credit terms of 3/10 n/45 and returns $500 of inventory prior to payment. What is the amount of the payment assuming payment is made within the discount period? (Points : 1)       $1,500       $1,455       $1,440       $1,560Question 61.61. The adjusting entry recording depreciation is omitted at year end. This omission affects the balance sheet by ________. (Points : 1)       understating net income       overstating liabilities       overstating assets       understating equityQuestion 62.62. A work sheet is a_______. (Points : 1)       formal statement issued to investors       formal document required by the Internal Revenue Service       replacement for the general journal       a multicolumn document used by accountants to aid in the preparation of the financial statementsQuestion 63.63. Keeping accurate records of accounts receivable is an example of which feature of a good accounting information system? (Points : 1)       favorable cost/benefit relationship       compatibility       control       flexibilityQuestion 64.64. A purchase of supplies for cash is recorded in the_______. (Points : 1)       cash receipts journal       purchases journal       cash payments journal       general journalQuestion 65.65. A computerized accounting information system can facilitate segregation of duties by ________. (Points : 1)       attaching electronic sensors to merchandise that set off alarms when the merchandise is taken out of the store       using pre-numbered documents       limiting which employees have read/write access to certain information within the system       hiring competent employeesQuestion 66.66. Posting the entries in the sales journal to the accounts receivable subsidiary ledger should be done_______. (Points : 1)       on a weekly basis       only at the end of the accounting period       at the end of each month       on a daily basisQuestion 67.67. Assuming the use of special journals, the borrowing of $80,000 from the bank by signing a note payable would be recorded in the_______. (Points : 1)       cash receipts journal       sales journal       cash payments journal       general journalQuestion 68.68. The following data are available for Cline Paper Company for March:Book balance, March 31$3,620Service charges50Interest revenue35Note collected by bank1,500Check returned marked NSF700What is Cline’s adjusted book balance on March 31 from the above data? (Points : 1)       $4,405       $3,620       $2,905       $4,505Question 69.69. All of the following would be on the books side of a bank reconciliation except_______. (Points : 1)       bank recorded a $2,000 deposit as $200       collection of note receivable for $1,000       nonsufficient funds check for $75       service fee of $20Question 70.70. Assuming the use of special journals, the sale of merchandise to Jerri Blackwell on account would be recorded in the_______. (Points : 1)       sales journal       accounts receivable journal       general journal       cash receipts journalQuestion 71.71. In a bank reconciliation, a $400 NSF check is_______. (Points : 1)       deducted from the book balance       added to the book balance       deducted from the bank balance       added to the bank balanceQuestion 72.72. Designating a corporate controller is an example of which characteristic of internal control_______? (Points : 1)       assignment of responsibilities       competent, reliable, and ethical personnel       proper authorization       separation of dutiesQuestion 73.73. The Sawtooth Company received a bank statement showing a balance of $62,300. Reconciling items included outstanding checks of $1,450 and a deposit in transit of $8,500. What is the company’s adjusted bank balance? (Points : 1)       $69,350       $58,850       $68,800       $67,350Question 74.74. A critical element of internal control over collections of accounts receivable is_______. (Points : 1)       setting up a petty cash account       the separation of cash-handling and cash-accounting duties       using a chck writing machine       depositing the cash from the cash register on a daily basisQuestion 75.75. A check for the cash purchase of supplies for $329 was recorded on the books as $239. On a bank reconciliation, this will appear as a(n)_______. (Points : 1)       addition to the book balance       deduction from the bank balance       addition to the bank balance       deduction from the book balance