Archives: Quiz
978-0134486833 Test Bank Chapter 5 Part 5
21) Journalize the following transactions for Park Gift Shop. Explanations are not required. Park uses a perpetual inventory system. Mar. 5: Purchased $4,400 of merchandise inventory on account, 3/10, n/EOM and FOB shipping point. Mar. 9: Returned $700 of defective […]
978-0134486833 Test Bank Chapter 5 Part 4
61) Knowing the net cost of inventory allows a business to determine the actual cost of the merchandise purchased. Answer: TRUE Diff: 2 LO: 5-2 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Application H2: Cost of Inventory […]
978-0134486833 Test Bank Chapter 5 Part 3
34) A company using the perpetual inventory system purchased inventory worth $25,000 on account with terms of 3/10, n/30. Defective inventory of $1,000 was returned two days later, and the accounts were appropriately adjusted. If the invoice is paid 10 […]
978-0134486833 Test Bank Chapter 5 Part 2
5.2 Learning Objective 5-2 1) An invoice is a request for payment from the purchaser. Answer: FALSE Explanation: An invoice is a seller’s request for payment from the purchaser. Diff: 1 LO: 5-2 AACSB: Application of knowledge AICPA Functional: Measurement […]
978-0134486833 Test Bank Chapter 5 Part 1
Financial & Managerial Accounting, 6e (Miller-Nobles) Chapter 5 Merchandising Operations 5.1 Learning Objective 5-1 1) A wholesaler is a merchandiser who buys goods from a manufacturer and then sells the goods to retailers. Answer: TRUE Diff: 1 LO: 5-1 AACSB: […]
978-0134486833 Test Bank Chapter 4 Part 9
77 Copyright © 2018 Pearson Education, Inc. Wilson Engraving Balance Sheet December 31, 2018 Assets Cash $25,000 Accounts Receivable 16,000 Office Supplies 4,000 Prepaid Insurance 10,000 Equipment $65,000 Less: Acc. Depr. – Equipment 2,000 33,000 Total Assets $88,000 Liabilities Accounts […]
978-0134486833 Test Bank Chapter 4 Part 8
71 Copyright © 2018 Pearson Education, Inc. Explanation: D) Cash $13,000 Accounts Receivable 8,000 Prepaid Rent 7,000 Prepaid Insurance 2,100 Office Supplies 3,300 Total current assets $33,400 Accounts Payable $5,500 Salaries Payable 4,500 Interest Payable 2,000 Total current liabilities $12,000 […]
978-0134486833 Test Bank Chapter 4 Part 7
3) In an accounting cycle, an analysis of transactions is performed at the end of each accounting period. Answer: FALSE Explanation: In an accounting cycle, an analysis of transactions is performed as they occur. Diff: 1 LO: 4-5 AACSB: Application […]
978-0134486833 Test Bank Chapter 4 Part 6
55) If a business has a net loss, the closing entry to close Income Summary would be a debit to Income Summary and a credit to Retained Earnings. Answer: FALSE Explanation: If a business has a net loss, the closing […]
978-0134486833 Test Bank Chapter 4 Part 5
42) Woods, Inc. earned revenues of $11,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $3,000. What is the balance in the Income Summary account after closing net income or loss to the Retained Earnings […]
978-0134486833 Test Bank Chapter 4 Part 4
3) Permanent accounts are not closed at the end of the accounting period. Answer: TRUE Diff: 1 LO: 4-3 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: What is the Closing Process, and How Do We […]
978-0134486833 Test Bank Chapter 4 Part 3
5) Which of the following statements concerning the worksheet is correct? A) When a worksheet is used, there is no need to make journal entries. B) A worksheet consists of seven sections. C) Section 5 (Income Statement) and Section 6 […]
978-0134486833 Test Bank Chapter 4 Part 2
38) Which of the following statements regarding intangible assets is incorrect? A) Intangible assets have no physical form. B) Intangible assets are valuable because of the special rights they carry. C) Intangible assets are not reported on the balance sheet. […]
978-0134486833 Test Bank Chapter 4 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 4 Completing the Accounting Cycle 4.1 Learning Objective 4-1 1) The balance sheet is the first financial statement that is prepared at the end of the period. Answer: FALSE Explanation: The income […]
978-0134486833 Test Bank Chapter 3 Part 9
8) The following extract was taken from the worksheet of Special Events Bakers for the year 2019. Special Events Bakers Worksheet December 31, 2019 Account Names Cash Equipment Accumulated Depreciation – Equipment Unadjusted Trial Balance Debit Credit $7,000 15,500 $8,500 […]
978-0134486833 Test Bank Chapter 3 Part 8
25) What is the effect of the adjusting entry for Depreciation Expense? A) It increases total liabilities and increases total expenses. B) It increases total assets and increases total expenses. C) It decreases total assets and increases total expenses. D) […]
978-0134486833 Test Bank Chapter 3 Part 7
61 9) The unadjusted trial balance of Albert Business Consulting at December 31, 2018, and the data for the adjustments follow: Albert Business Consulting Unadjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash $22,000 Accounts Receivable 12,000 […]
978-0134486833 Test Bank Chapter 3 Part 6
97) Bayside Technical Services signed a contract on a six-month job for a client, starting on March 1. Bayside will collect $24,000 from its customer when the job is finished but the revenue is earned evenly over the six months. […]
978-0134486833 Test Bank Chapter 3 Part 5
67) On December 31, 2018 the balance in Energy Exploration Company‘s Unearned Revenue account was a credit of $10,000. In January, 2019, the company received an advance payment of $11,000 from a new customer for services to be performed. By […]
978-0134486833 Test Bank Chapter 3 Part 4
40) On September 1, 2018, Real Estate Professionals, Inc. paid $7,000 in advance for an eight-month rental space covering the period of September 1, 2018 through April 30, 2019. The deferred expense was initially recorded as an asset. The company […]
978-0134486833 Test Bank Chapter 3 Part 3
9) Prepaid Rent is an expense account that appears on the income statement. Answer: FALSE Explanation: Prepaid Rent is an asset. Diff: 1 LO: 3-3 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Deferred Expenses 10) […]
978-0134486833 Test Bank Chapter 3 Part 2
10) Which of the following accounting terms assumes that a business’s activities can be divided into small segments and that financial statements can be prepared for specific periods, such as a month, quarter, or year? A) adjusting entry concept B) […]
978-0134486833 Test Bank Chapter 3 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 3 The Adjusting Process 3.1 Learning Objective 3-1 1) The major difference between a cash basis accounting system and an accrual basis accounting system is the timing of recording revenues and assets. […]
978-0134486833 Test Bank Chapter 2 Part 9
31) A journal entry for a $65 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance? […]
978-0134486833 Test Bank Chapter 2 Part 8
71 Copyright © 2018 Pearson Education, Inc. Answer: The cash balance is the difference between the debit and credit columns of the Trial Balance. Cash balance = $197,000 – $109,400 = $87,600 Musical Instruments Trial Balance December 31, 2019 Account […]
978-0134486833 Test Bank Chapter 2 Part 7
2.4 Learning Objective 2-4 1) The trial balance is also known as the balance sheet. Answer: FALSE Explanation: The trial balance and the balance sheet are not the same. Diff: 1 LO: 2-4 AACSB: Application of knowledge AICPA Functional: Measurement […]
978-0134486833 Test Bank Chapter 2 Part 6
68) For each transaction, identify which account is debited and which account is credited. Use proper account titles. Transaction Debit Credit Received a bill for utilities to be paid next month Performed services on account Paid cash for a 12-month […]
978-0134486833 Test Bank Chapter 2 Part 5
46) A business collects cash from a customer for services that were performed one month earlier. Which of the following accounts is credited? A) Cash B) Accounts Receivable C) Service Revenue D) Accounts Payable Answer: B Diff: 2 LO: 2-3 […]
978-0134486833 Test Bank Chapter 2 Part 4
14) When a business records an accrued utility liability, the Utilities Expense account is credited. Answer: FALSE Explanation: When a business records an accrued utility liability, the Utilities Expense account is debited. Diff: 1 LO: 2-3 AACSB: Application of knowledge […]
978-0134486833 Test Bank Chapter 2 Part 3
26) An account that normally has a debit balance may occasionally have a credit balance. Answer: TRUE Diff: 1 LO: 2-2 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: The Normal Balance of an Account 27) […]
978-0134486833 Test Bank Chapter 2 Part 2
35) Consider the following accounts and identify each as an asset (A), liability (L), or equity (E). Common Stock Accounts Receivable Dividends Service Revenue Prepaid Rent Answer: Common Stock E Accounts Receivable A Dividends E Service Revenue E Prepaid Rent […]
978-0134486833 Test Bank Chapter 2 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 2 Recording Business Transactions 2.1 Learning Objective 2-1 1) An account is a detailed record of all increases and decreases that have occurred in an individual asset, liability, or equity during a […]
978-0134486833 Test Bank Chapter 15 Part 8
55) Walton, Inc. provides the following data: 2019 2018 Cash $44,000 $25,000 Accounts Receivable, Net 101,000 62,000 Merchandise Inventory 78,000 50,000 Property, Plant, and Equipment, Net 182,000 120,000 Total Assets $405,000 $257,000 Additional information for the year ending December 31, […]
978-0134486833 Test Bank Chapter 15 Part 7
36) Danby, Inc. provides the following data from its income statement for 2018: Net Sales $520,000 Cost of Goods Sold (190,000) Gross Profit $330,000 Calculate the gross profit percentage. (Round your answer to two decimal places.) A) 17.37% B) 63.46% […]
978-0134486833 Test Bank Chapter 15 Part 6
18) The financial statements for Stephens’ Electric Company include the following items: 2019 2018 Cash $52,000 $51,000 Cash Equivalents 21,500 12,000 Net Accounts Receivable 24,000 35,000 Merchandise Inventory 81,000 70,000 Total Assets 529,000 550,000 Accounts Payable 46,500 42,000 Salaries Payable […]
978-0134486833 Test Bank Chapter 15 Part 5
29) Data for Martin Corp. and Tante, Inc. follow: Martin Tante Net Sales $25,000 $32,500 Cost of Goods Sold 18,500 22,360 Other Expenses 2,150 5,000 Net Income $4,350 $5,140 Prepare a comparative common-size income statement for each company for the […]
978-0134486833 Test Bank Chapter 15 Part 4
14) Shelcal, Inc. provides the following data for the year 2019: Net Sales Revenue 437,960 Cost of Goods Sold 257,000 The cost of goods sold as a percentage of net sales revenue is ________. (Round your answer to two decimal […]
978-0134486833 Test Bank Chapter 15 Part 3
21 Copyright © 2018 Pearson Education, Inc. Answer: Comparative Balance Sheet—Horizontal Analysis Michelle, Inc. Comparative Balance Sheet December 31, 2019 and 2018 Increase (Decrease) 2019 2018 Amount Percentage Assets Current Assets: Cash $12,000 $10,200 $1,800 17.6 Accounts Receivables, Net 16,100 […]
978-0134486833 Test Bank Chapter 15 Part 2
8) The following is a summary of information presented on the financial statements of a company on December 31, 2019. Account 2019 2018 Net Sales Revenue $600,000 $504,000 Cost of Goods Sold 456,000 405,000 Gross Profit $144,000 $99,000 Selling Expenses […]
978-0134486833 Test Bank Chapter 15 Part 1
Horngren’s Financial and Managerial Accounting, 6e (Miller-Nobles) Chapter 15 Financial Statement Analysis Learning Objective 15-1 1) Investors and creditors can evaluate a company by examining only one year of data. Answer: FALSE Diff: 1 LO: 15-1 AACSB: Application of knowledge […]
978-0134486833 Test Bank Chapter 14 Part 11
99 Copyright © 2018 Pearson Education, Inc. Answer: Lone Star Hat Company Partial Statement of Cash Flows For the Year Ended December 31, 2018 Cash Flows from Operating Activities Receipts Collections from Customers $308,100 Payments To Suppliers (270,140) Total Cash […]
978-0134486833 Test Bank Chapter 14 Part 10
Colonial Company Statement of Retained Earnings Year Ended December 31, 2019 Retained Earnings, January 1, 2019 $78,000 Add: Net income 52,000 Less: Dividends 15,000 Retained Earnings, December 31, 2019 $115,000 Prepare the operating activities section of the statement of cash […]
978-0134486833 Test Bank Chapter 14 Part 9
Use the direct method, to compute the net cash provided by operating activities. (Accrued Liabilities relate to other operating expense.) A) $(55,700) B) $39,700 C) $(39,700) D) $55,700 Answer: B Explanation: B) Diff: 3 LO: 14-4 AACSB: Application of knowledge […]
978-0134486833 Test Bank Chapter 14 Part 8
15) Arena, Inc. uses the direct method to prepare its statement of cash flows. Use the following information reported for 2019 to compute the amount of cash paid for merchandise inventory. Cost of Goods Sold, $132,000 Merchandise Inventory, beginning balance, […]
978-0134486833 Test Bank Chapter 14 Part 7
88) Canada Company needs to purchase a property to build their headquarters. An investor is willing to exchange land with a market value of $700,000 for shares of common stock. On the statement of cash flows, this transaction would be […]
978-0134486833 Test Bank Chapter 14 Part 6
70) Kansas Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Kansas Company Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase (Decrease) Accounts Payable […]
978-0134486833 Test Bank Chapter 14 Part 5
41 56) Which of the following sections from the statement of cash flows includes borrowing cash and paying off loans? A) the investing activities section B) the operating activities section C) the financing activities section D) the non-cash investing and […]
978-0134486833 Test Bank Chapter 14 Part 4
34) Selling property, plant, and equipment for $10,000 cash is considered a cash inflow from investing activities on the statement of cash flows. Answer: TRUE Diff: 1 LO: 14-2 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept […]
978-0134486833 Test Bank Chapter 14 Part 3
21) Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Georgia Corp. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase/(Decrease) Cash $45,000 $27,000 […]
978-0134486833 Test Bank Chapter 14 Part 2
32) The direct method starts with net income and adjusts it to net cash provided by operating activities. Answer: FALSE Explanation: The indirect method starts with net income and adjusts it to net cash provided by operating activities. Diff: 1 […]