Archives
International Business Chapter 1 1 The type of business organization that can continue indefinitely is known as a
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 1 Accounting Concepts and Procedures 1.1 Learning Objective 1-1 1) The type of business organization that can continue indefinitely is known as a: A) sole […]
International Business Chapter 1 2 Ryan withdrew cash from the business to pay his personal cell phone bill
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2) Owner’s withdrawals: A) decrease assets. B) increase expenses. C) increase liabilities. D) decrease withdrawals. Answer: A Diff: 2 LO: 1-3 AACSB: Reflective Thinking Skills Learning Outcome: Analyze and record […]
International Business Chapter 10 1 A form used in business to place an order for the buying of goods from a seller is
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 10 Purchases and Cash Payments 10.1 Learning Objective 10-1 1) Net purchases are: A) Purchases + Purchases Returns and Allowances. B) Purchases – Purchases Discount […]
International Business Chapter 10 2 Which account is the controlling account for the amounts owed to individual creditors
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 18) Determine the amount of credit to be earned on a full return of merchandise purchased with an invoice price of $5,000 and credit terms of 2/10, n/30 when full […]
International Business Chapter 11 1 which would most likely cause the recording of unearned revenue
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 11 Preparing a Worksheet for a Merchandise Company 11.1 Learning Objective 11-1 1) What inventory method is used when the inventory balance is updated only […]
International Business Chapter 11 2 On the worksheet the beginning Merchandise Inventory account appears in
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 78) Calculate: (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income from the following: Sales $3,000 Beginning Inventory $ 500 Sales Discount 50 Net […]
International Business Chapter 12 1 What is the name of the revenue account used by merchandise companies
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 12 Completion of the Accounting Cycle for a Merchandise Company 12.1 Learning Objective 12-1 1) The income statement is prepared from the: A) Post-Closing Trial […]
International Business Chapter 12 2 How is Income Summary closed if the company had a net income
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 61) Discuss the purpose of a classified balance sheet. Include a description of the major balance sheet classifications including: current assets, plant and equipment, current liabilities, and long-term liabilities. Answer: […]
International Business Chapter 13 1 Which of the following situations would more likely not result in bad debts
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 13 Accounting for Bad Debts 13.1 Learning Objective 13-1 1) Which of the following situations would more likely not result in bad debts? A) The […]
International Business Chapter 13 2 As the past due time increases for an account, the likelihood of collecting that account
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13.3 Learning Objective 13-3 1) If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible? […]
International Business Chapter 14 1 A written promise to pay a certain sum of money to another person or company is a
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 14 Notes Receivable and Notes Payable 14.1 Learning Objective 14-1 1) A written promise to pay a certain sum of money to another person or […]
International Business Chapter 14 2 The entry to record the cash received on a note discounted at less than face value is to
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 9) Steadman’s Computer endorses a customer’s note dated June 17 to the bank on August The interest rate on the note is 10%, and the bank discount rate is 12%. […]
International Business Chapter 15 1 Under the perpetual system, the purchase of merchandise is recorded by a
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 15 Accounting for Merchandise Inventory 15.1 Learning Objective 15-1 1) In a perpetual inventory system: A) Merchandise Inventory is debited every time inventory is purchased. […]
International Business Chapter 15 2 Which of the following should not be included in inventory costs
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16) Barry’s Books uses a periodic inventory system. Barry’s Books sold 45 copies of Helpful Hints during September. Other data for September include: Sep. 1 Balance 12 books @ $20 […]
International Business Chapter 16 1 Which of the following assets would not be classified as property
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 16 Accounting for Property, Plant, Equipment, and Intangible Assets 16.1 Learning Objective 16-1 1) Which of the following assets would not be classified as property, […]
International Business Chapter 16 2 What is the difference between an extraordinary repair and a betterment
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 3) A company incorrectly records revenue expenditures as capital expenditures on its books. As a result, which of the following will be true? A) Net income will be understated for […]
International Business Chapter 16 3 The exclusive right to produce and sell a manuscript is called a
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16.6 Learning Objective 16-6 1) Amortization of a patent was ignored. This error would cause: A) the period’s net income to be overstated. B) the period’s net income to be […]
International Business Chapter 17 1 Many associations such as medical centers and law firms could organize as a
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 17 Partnership 17.1 Learning Objective 17-1 1) Many associations such as medical centers and law firms could organize as a: A) sole proprietorship. B) corporation. […]
International Business Chapter 17 2 A bonus paid by an incoming partner to the old partners is shared
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 9) The statement of partners’ equity reflects the equity of each partner and summarizes the allocation of net income for the year. Answer: TRUE Diff: 2 LO: 17-3 AACSB: Analytic […]
International Business Chapter 18 1 Which of the following is not a characteristic of a corporation
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 18 Corporations: Organizations and Stock 18.1 Learning Objective 18-1 1) The articles of incorporation are: A) submitted by the incorporators to the IRS for approval. […]
International Business Chapter 18 2 The sale of common stock was recorded as a sale of preferred stock
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 24) The sale of common stock was recorded as a sale of preferred stock. This error would cause: A) the period end stockholders’ equity to be overstated. B) the period […]
International Business Chapter 18 3 Identify the account types used in recording transactions related to a stock
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 12) Jane Kathryn has 30,000 shares outstanding of $10 par value, 10% preferred stock and 100,000 shares outstanding $5 par value common stock. In the first 3 years of operations, […]
International Business Chapter 19 1 The price at which shares are bought and sold on the open market is called
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 19 Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings 19.1 Learning Objective 19-1 1) The price a corporation pays when it reserves the right […]
International Business Chapter 19 2 Explain some possible reasons a company may declare a stock dividend
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 46) On May 31, Mason Corporation has the following stockholders’ equity: Common Stock, $10 par value, 6,000 shares issued and outstanding $60,000 Retained Earnings 20,000 Total Stockholders’ Equity $80,000 The […]
International Business Chapter 2 1 Selected accounts from the ledger of Thomas Company appear below
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 2 Debits and Credits: Analyzing and Recording Business Transactions 2.1 Learning Objective 2-1 1) A chart of accounts: A) is set up in alphabetical order. […]
International Business Chapter 2 2 Accounts Receivable indicates amounts owed to us by our clients or customers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 72) When the owner invests personal equipment in the business, cash is increased. Answer: FALSE Diff: 1 LO: 2-2 AACSB: Analytic Skills Learning Outcome: Analyze and record transactions and their […]
International Business Chapter 20 1 The amount to be paid on the maturity date of a bond is called the
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 20 Corporations and Bonds Payable 20.1 Learning Objective 20-1 1) A special type of long-term interest-bearing note payable issued by a corporation to raise capital […]
International Business Chapter 20 2 Interest expense will be greater than the interest payment when bonds are issued
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 18) Interest expense will be greater than the interest payment when bonds are issued at: A) a premium. B) face value. C) a discount. D) the contract rate. Answer: C […]
International Business Chapter 20 3 At year end there was no accrual of interest on a bond payable
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 7) On October 1, Indiana Company issued $10,000, 8%, 5-year bonds at 98. What is the adjusting entry on December 31 using straight-line method? A) Bond Interest Expense 800 Bond […]
International Business Chapter 21 1 The statement of cash flows provides information about all of the following except
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 21 Statement of Cash Flows 21.1 Learning Objective 21-1 1) A statement of cash flows: A) has three main sections: net cash flow from operating, […]
International Business Chapter 21 2 Which of the following is not a cash flow from investing activities
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15) Col 1 Operating Direct Col 2 Operating Indirect Col 3 Investing Col 4 Financing Increase in prepaid expenses Answer: Col 1 Operating Direct Col 2 Operating Indirect Col 3 […]
International Business Chapter 22 1 A statement comparing data from two or more consecutive periods is called
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 22 Analyzing Financial Statements 22.1 Learning Objective 22-1 1) A statement comparing data from two or more consecutive periods is called a: A) comparative balance […]
International Business Chapter 22 2 The ratio that indicates the amount of assets that are financed by creditors is
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 28) If management wishes to measure a business’s ability to pay upcoming debts, they could refer to measures for: A) leverage. B) liquidity. C) debt management. D) profitability. Answer: B […]
International Business Chapter 23 1 In a voucher system, the controlling account in the general ledger
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 23 The Voucher System 23.1 Learning Objective 23-1 1) A voucher system is designed to control a company’s: A) cash receipts. B) cash payments. C) […]
International Business Chapter 23 2 If a partial payment is made after the voucher is prepared
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 75) Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments. Answer: Internal Control Diff: 1 LO: 23-1 AACSB: Analytic Skills […]
International Business Chapter 24 1 Departmental reports are useful for all of the following purposes except
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 24 Departmental Accounting 24.1 Learning Objective 24-1 1) A profit center is a unit in which the manager: A) has the responsibility for controlling costs, […]
International Business Chapter 24 2 Which of the following expenses is the most difficult to allocate to departments
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 24) Advertising expense totaled $20,000. If indirect advertising costs are allocated based on gross sales per department, what amount would be allocated to the glassware department if $5,000 of advertising […]
International Business Chapter 25 1 Which inventory account consists of manufacturing cost of goods that are complete
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 25 Manufacturing Accounting 25.1 Learning Objective 25-1 1) Nails, depreciation, and foreman salaries are examples of: A) raw materials. B) direct labor. C) manufacturing overhead. […]
International Business Chapter 25 2 Work-in-Process Inventory is debited when goods are transferred to finished goods
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15) If direct labor for the month is $80,000, and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead? A) Debit Work-in-Process […]
International Business Chapter 3 1 The twelve-month period a business chooses for its accounting period is a
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 3 Beginning the Accounting Cycle 3.1 Learning Objective 3-1 1) The process that begins with recording business transactions and includes the completion of the financial […]
International Business Chapter 3 2 Cooper Company began business in June. Prepare the following transactions for June
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 67) Journalize, in proper form, the following transactions that occurred during September. Omit explanations. September 5 Michele invested $23,000 cash and $10,000 of equipment into her new business 10 Paid […]
International Business Chapter 3 3 A running balance is maintained in the ledger after each transaction is posted
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 20) A running balance is maintained in the ledger after each transaction is posted. 33 Answer: TRUE Diff: 2 LO: 3-2 AACSB: Reflective Thinking Skills Learning Outcome: Define accounting terms, […]
International Business Chapter 4 1 Bringing account balances up to date before preparing financial reports is called
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 4 The Accounting Cycle Continued 4.1 Learning Objective 4-1 1) A form used to organize and check data before preparing financial reports is known as […]
International Business Chapter 4 2 The debits must equal credits on the adjusted trial balance columns of the worksheet
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 87) Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the book value of the equipment after […]
International Business Chapter 5 1 The adjusting entry to record depreciation for the company automobile would be
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 5 The Accounting Cycle Completed 5.1 Learning Objective 5-1 1) Adjusting journal entries: A) need not be journalized since they appear on the worksheet. B) […]
International Business Chapter 5 2 When Income Summary has a credit balance and the account is closed
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 38) The following normal account balances were found on the general ledger before closing entries were prepared: Revenue $700 Cash $600 Expenses $400 Accounts Receivable $400 Capital $7,500 Withdrawals $1,000 […]
International Business Chapter 5 3 Why will the Income Summary account never appear on a financial statement
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 80) From the following items in the income statement columns of the worksheet of Friend’s Tutoring at December 31, prepare the closing entries without explanation, assuming that a $1,000 withdrawal […]
International Business Chapter 6 1 Internal control over a company’s assets should include the following policy
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 6 Banking Procedure and Control of Cash 6.1 Learning Objective 6-1 1) Internal control over a company’s assets should include the following policy: A) Responsibilities […]
International Business Chapter 6 2 On a bank reconciliation, outstanding checks are deducted from the balance per books
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 32) On a bank reconciliation, outstanding checks are deducted from the balance per books. Answer: FALSE Diff: 2 LO: 6-2 AACSB: Reflective Thinking Skills Learning Outcome: Define accounting terms, accounting […]
International Business Chapter 7 1 Which of the following taxes has a maximum amount an employee must pay in a year
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 7 Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process 7.1 Learning Objective 7-1 1) A pay period is defined as: A) weekly. […]
International Business Chapter 7 2 Each state is responsible for administering an unemployment program
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 69) An employee earns $16 per hour. He worked 45 hours the last week of January (assuming time and a half for overtime). Calculate the total amount of employee deductions. […]
International Business Chapter 8 1 The Wages and Salaries Expense account would be used to record
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 8 Paying, Recording, and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process 8.1 Learning Objective 8-1 1) Prepaid Worker’s Compensation Insurance is […]
International Business Chapter 8 2 The tax paid by the employer for both the employee and employer
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 8.3 Learning Objective 8-3 1) The tax paid by the employer for both the employee and employer: A) must be deposited in an authorized depository. B) must be deposited directly […]
International Business Chapter 9 1 Merchants who buy goods from wholesalers for resale to customers are
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall College Accounting, 12e (Slater) Chapter 9 Sales and Cash Receipts 9.1 Learning Objective 9-1 1) Merchants who buy goods from wholesalers for resale to customers are: A) merchandisers. B) retailers. […]
International Business Chapter 9 2 Received payment, within the discount period, for merchandise sold previously
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 9.3 Learning Objective 9-3 1) The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary […]