Chapter 15, TEST 15B



Chapter 15, TEST 15B

Name _________________________

Date _________________________

SCORING RECORD

| |Total Possible | |Student |

|Section | |Deductions |Score |

|A |30 | | |

|B |30 | | |

|C |10 | | |

|D |30 | | |

|Total |100 | | |

Section A

DIRECTIONS: Each of the following statements is true or false. Indicate your choice by writing in the Answers column T for a true answer or F for a false answer. (2 points for each correct answer)

For

Answers Scoring

1. The merchandise inventory account is debited when

purchases of merchandise are made throughout the

year. _____ _____

2. At the end of the accounting period, the

merchandise inventory account is credited for the

beginning inventory amount. _____ _____

3. After posting adjusting entries, the debit amount

in the merchandise inventory accounts reflects the

inventory on hand at the end of the accounting

period. _____ _____

4. Worksheets used for merchandise businesses are

very similar to worksheets used for service

businesses. _____ _____

5. If the beginning inventory is $24,000 and the

ending inventory is $18,000, the first step in

adjusting merchandise inventory is to debit

merchandise inventory $24,000. _____ _____

6. Unearned Revenue is a contra-revenue account. _____ _____

7. When unearned revenue is finally earned, a revenue

account is credited to reflect that income. _____ _____

8. The balance of Unearned Revenue is reported on the

balance sheet as an asset at the end of the

accounting period. _____ _____

9. Purchases Returns and Allowances is a

contra-revenue account. _____ _____

10. A contra-cost account and a contra-revenue account

are both given ".1" extensions to their related

master account's number. _____ _____

11. Adjustments made on the worksheet do not need to

be entered in the general journal since the

worksheet is considered a formal accounting record._____ _____

12. When extending the totals of the Income Summary

on the worksheet the debit and credit amounts are

subtracted and the difference is reported in the

credit column. _____ _____

13. The difference between the debits and the credits

for the Income Statement and the Balance Sheet

columns represents the net income or net loss. _____ _____

14. There is no need to make journal entries in the

General Ledger for the adjustments if the work

sheet balances. _____ _____

15. The worksheet like the Income Statement, Owner's

Equity Statement, and the Balance Sheet is a

formal report of the business. _____ _____

Section B

Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement. (3 points each) For

Answers Scoring

1. This account is never debited or credited during

the accounting period: (A) Owner's Equity;

(B) Interest Income; (C) Merchandise Inventory;

(D) Purchases Discounts; (E) Sales. _____ _____

2. Actually counting the goods on hand at the end of

the accounting period and determining the cost of

these goods by reviewing the accounting records is

called: (A) an adjusting entry; (B) physical

inventory; (C) cost of goods sold; (D) freight-in;

(E) the closing process. _____ _____

3. Which account balance is not used to compute the

cost of merchandise sold? (A) Purchases Discounts;

(B) Purchases Returns and Allowances; (C)

Merchandise Inventory; (D) Purchases; (E) Sales. _____ _____

4. Soccer, Inc. plans to sell season soccer tickets

for the 10 home games played in April through July.

These tickets sell for $15 each at the gate or for

$120 per season package purchased before February 28.

On February 28, the office reports that it has sold

10,000 season ticket packages and has only 500 left.

The correct entry to record the sale of the season

tickets is: (A) debit Cash and credit Unearned

Revenue for $1,200,000; (B) debit Cash and credit

Revenue for $1,200,000; (C) debit Unearned Revenue

and credit Revenue for $1,200,000; (D) determine

cost of merchandise sold; (E) wait until the

entire 10,500 ticket packages sell. _____ _____

5. Unearned revenue is reported as: (A) a liability

on a balance sheet; (B) revenue on an income

statement; (C) an operating expense on the chart

of accounts; (D) a contra-asset account in the

income summary; (E) revenue on a trial balance. _____ _____

6. Account(s) you would expect to find under the

heading of "Current Assets" in a chart of

accounts is/are: (A) Merchandise Inventory;

(B) Accounts Receivable; (C) Cash; (D) Accumulated

Depreciation-Equipment; (E) a & b & c. _____ _____

7. On a worksheet, the debit columns of the Income

Statement and the Balance Sheet both total more

than the credit columns. This represents;

A) an error in the accounting procedures for the

period; (B) a net loss; (C) a net income;

(D) accumulated depreciation and other expenses;

(E) unearned revenue. _____ _____

8. Examples of unearned revenue accounts include:

A) Prepaid Interest; (B) Unearned Maintenance

Revenue; (C) Subscription Revenue; (D) Prepaid

Insurance; (E) Supplies. _____ _____

9. The difference between the debits and credits for

each pair of columns in the Income Statement and

the Balance Sheet columns of the work sheet

represents: (A) net income; (B) net loss; (C) net

purchases; (D) cost of merchandise sold;

(E) either a or b. _____ _____

10. At the end of the accounting period, the correct

entry in the general journal to adjust for

beginning inventory is to: (A) debit Merchandise

Inventory and credit Sales; (B) debit Purchases

and credit Merchandise Inventory; (C) debit

Income Summary and credit Merchandise Inventory;

B) debit the Capital account and credit a

revenue account; (E) debit Purchase and credit

Cash. _____ _____

Section C

DIRECTIONS: Match the correct answer to the definition that best explains it. (2 points each)

_____ 1. Accumulated Depreciation.

_____ 2. Sales returns and allowances.

_____ 3. Unearned rent.

_____ 4. Notes Payable(payable in 5 years).

_____ 5. Purchase returns and allowances.

a. contra-cost accounts

b. contra-revenue accounts

c. contra-asset account

d. long-term liability

e. unearned revenue

Section D

DIRECTIONS: Selected accounts from the unadjusted trial balance are shown on the following page. Using the additional information prepare the adjusting entries for the year ended December 31, 20--.

(30 points total)

a) & b) Merchandise inventory cost on hand as of Dec 31, 20— is $18,000.

c) Supplies remaining at year end $300.

d) Insurance expired is $800

e) Unearned sales revenue at 12/31 is $700.

f) Wages earned but not paid $2,500.

-----------------------

[pic]

[pic]

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download