Archives: Quiz

1) An inexperienced accountant for Tilly Company made the following errors in recording merchandising transactions. 1>A $270 refund to a customer for faulty merchandise was debited to Sales Revenue $270 and credited to Cash $270. 2>A $310 credit purchase of […]

1) As part of a Careers in Accounting program sponsored by accounting organizations and supported by your company, you will be taking a group of high school students through the accounting department in your company. You will also provide them […]

1) The following facts are known: The total pounds needed for production are 2 times the units to be produced. The desired ending direct materials inventory is 20% of the total pounds needed for production. The beginning direct materials inventory […]

1) The _________________ basis of estimating uncollectibles normally results in the best approximation of _______________ value and therefore emphasizes balance sheet relationships. 2) The process of transferring net income (or loss) for the period to Owner’s Capital is accomplished by […]

1) Shoemaker Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: At Cost At Retail Beginning inventory$ […]

1) Wilson Company developed the following standard costs for its product for 2014: WILSON COMPANY Standard Cost Card Cost ElementsStandard QuantityStandard Price=Standard Cost Direct materials4 pounds$ 5$20 Direct labor2 hours1020 Variable overhead2 hours48 Fixed overhead2 hours2 4 $52 The company […]

1) 1>Drive-by Truckers prepares monthly financial statements. On July 1, the Supplies account had a balance of $3,000. During July, additional supplies were purchased for $4,800 and that amount was debited to Supplies Expense. On July 31, a physical count […]

1) The ledger accounts given below, with an identification number for each, are used by Sun Cleaning. Instructions: Prepare appropriate adjusting entries for the year ended December 31, 2014, by replacing the appropriate identification number(s) in the debit and credit […]

1) Unsecured bonds that are issued against the general credit of the borrower are called ________________ bonds. 2) To be classified as a short-term investment, the investment must be readily marketable and intended to be converted into cash within the […]

1) Amy Pond, a fellow employee, wants to understand the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur. 2) Hamilson Company’s static budget at 4,000 units of production includes […]

1) The following items were taken from the financial statements of Rug, Inc., over a four-year period: Item 2016 2015 2014 2013 Net Sales$900,000$650,000$600,000$500,000 Cost of Goods Sold 580,000 460,000 420,000 400,000 Gross Profit$320,000$190,000$180,000$100,000 Instructions Using horizontal analysis and 2013 […]

1) Dougan Company purchased equipment on January 1, 2013 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce […]

1) Karley Company sold equipment on July 1, 2014 for $75,000. The equipment had cost $210,000 and had $120,000 of accumulated depreciation as of January 1, 2014 . Depreciation for the first 6 months of 2014 was $12,000. Instructions Prepare […]

1) Why is it important to report discontinued operations separately from income from continuing operations? 2) The principle of internal control that prevents one individual from being responsible for all the related activities of a given task is ______________. Answer: […]

1) A $30,000, 8%, 9-month note payable requires an interest payment of $1,800 at maturity. 2) On July 1, 2014, Fogg Corporation issued $600,000, 8%, 10-year bonds at face value. Interest is payable semiannually on January 1 and July 1. […]

1) After Picard Company had completed all posting for the month of December, the sum of the balances in the following accounts payable subsidiary ledger did not agree with the balance of the control account in the general ledger. NameRykers […]

1) In a single-step income statement, all data are classified under two categories: (1) Revenues, or (2) Expenses. If the income statement is recast in a multiple-step format, what additional information or intermediate components of income would be presented? 2) […]

1) Kalven Company manufactures boats. During September, 2014, the company purchased 100 GPS devices at a cost of $120 each. Kalven withdrew 60 devices from the warehouse during the month. Twenty of these devices were installed in salespersons cars and […]

1) The following information is available for Lewis Corporation’s available-for-sale securities at December 31, 2014 . Security Cost Fair Value X$34,000$30,000 Y 24,000 32,000 $58,000$62,000 Instructions Prepare the adjusting entry to record the securities at fair value at December 31, […]

1) Britt Slais owns a garage and is contemplating purchasing a tire retreading machine for $20,350. After estimating costs and revenues, Britt projects a net cash flow from the retreading machine of $3,500 annually for 8 years. Britt hopes to […]

1) An income ratio based on ______________ balances may be appropriate when the amount of funds invested in the partnership is critical to the partnership. 2) Hayden Company purchased a machine on January 1, 2014, at a cost of $90,000. […]

1) The worksheet for Montoya Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should […]

1) Holmes Corporation manufactures electronic components for use in many consumer products. Their raw materials are purchased literally from all over the world. Depending on the country involved, purchase terms vary widely. Some suppliers, for example, require full prepayment, while […]

1) The account balances appearing in the adjusted trial balance columns are extended to the ______________ columns and the ______________ columns. 2) The following information was used to prepare the March 2014, bank reconciliation for Walker Machine Works. Identify the […]

1) The difference between actual hours times the actual pay rate and actual hours times the standard pay rate is the labor _________________ variance. 2) On September 1, Reid Supply had an inventory of 15 backpacks at a cost of […]

1) Drawings ________________ owner’s equity but are not expenses. 2) The end of the period account balances after adjustments of Hernandez Shoe Repair are as follows: Account Balances (After Adjustments) Cash$ 36,000 Supplies2,700 Prepaid Rent9,600 Equipment94,000 Accumulated DepreciationEquipment22,000 Accounts Payable14,500 […]

1) Sergei Company issued $400,000 of bonds on January 1, 2014 . Instructions Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100 . Prepare the journal entry to record […]

1) Humphreys, Inc. manufactures widgets for distribution. The standard costs for the manufacture of widgets follow: Standard CostsActual Costs Direct materials3 lbs. per widget at31,000 lbs. at $33 $35 per poundper pound Direct labor2.5 hours per widget22,500 hours at at […]

1) The balance in retained earnings on January 1, 2014, for Hotel Plaza Inc., was $575,000. During the year, the corporation paid cash dividends of $70,000 and distributed a stock dividend of $15,000. In addition, the company determined that it […]

1) Carpio Company begins the month of March with $15,000 of work in process costs from Job 324 . Information from job cost sheets shows the following additional costs assigned during March, April, and May of 2014: Manufacturing Costs Assigned […]

1) The Jamison and Stephens partnership reports net income of $50,000. Partner salary allowances are Jamison $18,000 and Stephens $12,000. Any remaining income is shared 60:40. Instructions Determine the amount of net income allocated to each partner. 2) Three quantitative […]

1) An adjusting entry is always a compound entry affects two balance sheet accounts c.affects two income statement accounts d.affects a balance sheet account and an income statement account 2) Bell Food Store developed the following information in recording its […]

1) All of the following statements regarding changes in accounting principles are true except: a.Most changes in accounting principles are only reported in current periods when the principle change takes place b.Changes in accounting principles are allowed when new principles […]

1) If bonds with a face value of $140,000 are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion will include a debit to a.Bonds Payable for $140,000 b.Bonds Payable […]

1) If an investor owns less than 20% of the common stock of another corporation as a long-term investment, a.the equity method of accounting for the investment should be employed b.no dividends can be expected c.it is presumed that the […]

1) Greenwond Inc. can make 1,000 units of a necessary component with the following costs: Direct Materials$72,000 Direct Labor18,000 Variable Overhead9,000 Fixed Overhead? The company can purchase the 1,000 units externally for $117,000. The avoidable fixed costs are $6,000 if […]

1) A loss on disposal of a plant asset is reported in the financial statements a.in the Other Revenues and Gains section of the income statement b.in the Other Expenses and Losses section of the income statement c.as a direct […]

1) Matt Warren and Associates, a C. P. A. firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the […]

1) The return on common stockholders equity is computed by dividing a.net income by ending common stockholders equity b.net income by average common stockholders equity c.net income less preferred dividends by ending common stockholders equity d.net income less preferred dividends […]

1) Classify each of the following as a(n): A.Operating Activity B.Investing Activity C.Financing Activity _____1>Issuance of bonds. _____2>Sale of equipment. _____3>Amortization expense. _____4>Purchase of treasury stock. _____5>Receipt of dividends on investment. _____6>Purchase of land. 2) An asset was purchased for […]

1) Cash is defined by IFRS as a.cash on hand b.demand deposits c.cash on hand and demand deposits d.cash on hand, demand deposits, and highly liquid investments 2) Autumn Company purchased a building on January 2 by signing a long-term […]

1) Which of the following is not an advantage of issuing bonds instead of common stock? a.Stockholder control is not affected b.Earnings per share on common stock may be lower c.Income to common shareholders may increase d.Tax savings result 2) […]

1) The high-low method is often employed in analyzing a.fixed costs b.mixed costs c.variable costs d.conversion costs 2) Blitzen Corporation had net income of $500,000 and paid dividends to common stockholders of $40,000 in 2014 . The weighted average number […]

1) Mary Ehrat, an employee of Eddington Company, has gross earnings for the month of October of $8,000. FICA taxes are 7.65% of gross earnings, federal income taxes amount to $1,270 for the month, state income taxes are 2% of […]

1) Ban Co. purchased 50, 5% Waylan Company bonds for $50,000 cash plus brokerage fees of $500. Interest is payable semiannually on July 1 and January 1 . The entry to record the December 31 interest accrual would include a […]

1) Marks Company uses four special journals, (cash receipts, cash payments, sales, and purchases journal) in addition to a general journal. On November 1, 2014, the control accounts in the general ledger had the following balances: Cash $12,000, Accounts Receivable […]

1) Physical controls to safeguard assets do not include a.cashier department supervisors b.vaults c.employee identification badges d.security guards 2) The process of totaling the columns of a journal is termed a.ruling b.columnizing c.sizing d.footing Answer: d 3) In a recent […]

1) Liabilities of a company are owed to a.debtors b.benefactors c.creditors d.underwriters 2) Villa Company purchased raw materials for $200,000. If this represents a $5,000 unfavorable price variance, what is the amount debited to Raw Materials Inventory in the entry […]

1) An unfavorable materials quantity variance would occur if a.more materials were purchased than were used b.actual pounds of materials used were less than the standard pounds allowed c.actual labor hours used were greater than the standard labor hours allowed […]

1) A double rule applied to accounts in the ledger during the closing process implies that a.the account is a temporary account b.the account is a balance sheet account c.the account balance is not zero d.a mistake has been made, […]