An accounts receivable requires the business to pay cash in the future.
Benchmarking is the practice of comparing a company with other leading companies.
When bonds are retired at maturity, assuming the last interest payment has already been
recorded, the journal entry includes a debit to the Bonds Payable account and a credit to
the Cash account.
On a bank reconciliation, deposits in transit are added on the bank side of the
reconciliation.
A company cannot report a gain or loss when buying or selling its own stock.
A high rate of inventory turnover indicates ease in selling inventory.
The Service Revenue account is a permanent account.
The times-interest-earned ratio measures the number of times earnings before interest
and taxes can cover interest expense.
Unlike cash dividends, which are optional payments to stockholders, the interest
payment on bonds is required.
All available-for-sale (AFS) investments are reported on the balance sheet at ________.
A) historical cost
B) replacement cost
C) current market value
D) net realizable value
In a networked system, the server stores the program and the data.
The bookkeeper of Fire Steel, Inc. recorded a $1,503 check as $15,030 in payment of
the current month’s rent. Which of the following journal entries is needed to adjust for
this error in the books of the company?
A)
B)
C)
D)
Preferred stock is stock ________.
A) that sells for a high price
B) that is distributed to employees as annual bonuses
C) that is distributed by corporations to avoid liquidation
D) that gives its owners certain advantages over common stockholders
A ________ is a schedule that summarizes the earnings, withholdings, and net pay for
each employee.
A) payroll register
B) bin card
C) cash ledger
D) bank reconciliation statement
Which of the following sequences states the order in which accounts are listed on a trial
balance?
A) Equity Assets Liabilities
B) Liabilities Assets Equity
C) Assets Equity Liabilities
D) Assets Liabilities Equity
Which of the following is true of the statement of cash flows?
A) It indicates when long-term debt will mature.
B) It reports on the qualitative behavior of the company’s performance.
C) It covers a span of time and is dated the same as the income statement.
D) It shows how the profits or losses of the company were generated.
The accounts payable subsidiary ledger ________.
A) does not indicate the amount owed to each vendor
B) shows only a single total for the amount owed on account
C) lists vendors in alphabetical order, along with amounts paid to the vendors and the
remaining amounts owed to them
D) has a format that is entirely different from an accounts receivable subsidiary ledger
Which of the following journal entries would be recorded if a business purchased $800
of office supplies on account?A)
B)
C)
D)
Patents, copyrights, and trademarks are examples of ________.
A) short-term investments
B) fixed assets
C) long-term investments
D) intangible assets
Synergy Appliances sells dishwashers with a four-year warranty. In 2017, sales revenue
for dishwashers is $97,000. The company estimates warranty expense at 4.5% of
revenues. What is the total estimated warranty payable of Synergy Appliances in 2017?
A) $4,365.00
B) $1,091.25
C) $1,597.59
D) $3,423.53
The bank statement reveals an EFT received from a customer that has not yet been
recorded in the ledger. How would this information be included on the bank
reconciliation?
A) an addition on the bank side
B) a deduction on the bank side
C) a deduction on the book side
D) an addition on the book side
Assets that are expected to be converted to cash, sold, or used up during the next 12
months, or within the business’s normal operating cycle if the cycle is longer than a
year, are called ________ assets.
A) intangible
B) plant
C) long-term
D) current
Centium Corporation sold goods to John Dunn for $1,000 on account. Cost of goods
sold was $745. Centium uses a perpetual inventory system and special journals. The
cost of goods sold is recorded in the ________ column of the sales journal.
A) Accounts Receivable DR, Sales Revenue CR
B) Cost of Goods Sold CR, Merchandise Inventory DR
C) Cost of Goods Sold DR, Merchandise Inventory CR
D) Sales Revenue DR, Accounts Receivable CR
The following extract was taken from the worksheet of Kelly Bakers for the year
2016.Kelly Bakers
Worksheet
December 31, 2016
For the above information, determine the amount of Depreciation Expense for the
equipment used in the business.
A) $9,200
B) $2,300
C) $6,800
D) $1,000
Which of the following statements is true of expenses?
A) Expenses increase equity, so an expense account’s normal balance is a credit
balance.
B) Expenses decrease equity, so an expense account’s normal balance is a credit
balance.
C) Expenses increase equity, so an expense account’s normal balance is a debit balance.
D) Expenses decrease equity, so an expense account’s normal balance is a debit balance.
The gross profit percentage is one of the most carefully watched measures of ________.
A) profitability
B) liquidity
C) solvency
D) marketability
Whitney Chemicals Company received cash of $40,000 and issued common stock.
Which of the following accounts will be credited?
A) Accounts Receivable
B) Cash
C) Common Stock
D) Accounts Payable