Chapter 15, TEST 15A
Chapter 15, TEST 15A
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 always reflects
the current inventory on hand. _____ _____
2. The amount of inventory on hand is determined by
taking a physical count of the merchandise on hand
and calculating the cost of those goods. _____ _____
3. Both the beginning and the ending merchandise
inventory amounts are posted to the income summary
account. _____ _____
4. Unearned revenue is a liability account. _____ _____
5. Cash received in advance for performing a service
or delivering a product is called prepaid revenue. _____ _____
6. The transaction to record earned revenue results
in a decrease in an asset account. _____ _____
7. A net loss results if the total of the debit column
of the Balance Sheet section exceeds the total of
the credit column of the Balance Sheet section. _____ _____
8. Adjusting entries entered on the work sheet and
recorded in the general journal do not have to
be posted to the general ledger. _____ _____
9. A contra-cost account is given a ".1" extension to
its related ledger account's number. _____ _____
10. When part of the amount of unearned revenue has
been earned, the unearned revenue account must be
adjusted. _____ _____
11. Both the debit and credit amounts for the income
summary account must be extended in the work
sheet. _____ _____
12. Journalizing adjustments from the work sheet has
no effect on the actual accounts in the general
ledger. _____ _____
13. In journalizing adjusting entries, Merchandise
Inventory is debited for the amount of ending
inventory. _____ _____
14. The work sheet is a formal financial statement. _____ _____
15. The difference between the Income Statement and
Balance Sheet debit and credit columns on the work
sheet represent the net income or the net loss. _____ _____
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. A beginning inventory of $75,000 is removed from
the merchandise inventory general ledger account by:
A) debiting $75,000 to Merchandise Inventory;
B) crediting $75,000 to Merchandise Inventory;
C) debiting $75,000 to Purchases; (D) crediting
$75,000 to Income Summary; (E) crediting $75,000
to Cash. _____ _____
2. For the current accounting period, the balance
of purchases is $20,000, beginning inventory was
$90,000, and ending inventory is $60,000.
Entries to the merchandise inventory account
should be: (A) debit $90,000 and credit $60,000;
(B) debit $70,000 and credit $60,000; (C) debit
$60,000 and credit $90,000; (D) debit $60,000 and
credit $110,000; (E) debit $110,000 and
credit 20,000. _____ _____
3. Prior to the adjusting entries, the current
inventory on hand is reflected as the: (A) first
debit amount in Merchandise Inventory; (B) first
credit amount in Merchandise Inventory; (C)
balance of cost of merchandise sold; (D) owner's
equity account; (E) total assets. _____ _____
4. Unearned revenue is reported as: (A) a current
liability on the balance sheet; (B) contra-
revenue on the income statement; (C) a contra-asset
account on the chart of accounts; (D) an owner's
equity account on the work sheet; (E) none of these._____ _____
5. Which of the following accounts would be found
under the heading of "Cost of Goods sold" in a
chart of accounts? (A) Sales; (B) Freight-In;
(C) Cash; (D) Supplies; (E) Sales Returns
and Allowances. ______ _____
6. An example of a contra-revenue account is:
A) Purchase Returns and Allowances;
(B) Accumulated Depreciation; (C) Sales;
(D) Sales Returns and Allowances; (E) Income
Summary. _____ _____
7. In preparing a work sheet, the amounts for the
Trial Balance columns are copied from: (A) the
general journal; (B) the sales and purchases
journals; (C) the general ledger; (D) the latest
income statement and balance sheet; (E) the
current chart of accounts. _____ _____
8. Which of the following is not a formal report of
a business: (A) Income Statement (B) Balance
Sheet; (C) Trial Balance; (D) Statement of Owner’s
Equity; (E) all are formal reports. _____ _____
9. Examples of unearned revenue accounts for prepaid
services do not include: (A) Unearned Interest
Revenue; (B) Unearned Maintenance Revenue;
(C)Unearned Subscription Revenue; (D) Unearned
Insurance Revenue; (E) Merchandise Inventory. _____ _____
10. At the end of the accounting period, the correct
entry in the general journal to adjust for
beginning inventory is to: (A) debit Purchases
and credit Merchandise Inventory; (B) debit
Merchandise Inventory and credit Sales; (C) debit
Purchases and credit Cash; (D) debit the Capital
account and credit a revenue account; (E) debit
Income Summary and credit Merchandise Inventory. _____ _____
Section C
DIRECTIONS: Match the correct answer to the definition that best explains it. (2 points each)
_____ 1. Accounts that are deducted from the Purchases account when
computing cost of goods sold--Purchases Returns and
Allowances and Purchases Discounts.
_____ 2. Accounts that are deducted from Sales on the income
statement--Sales Returns and Allowances and Sales Discounts.
_____ 3. A physical count of the goods on hand.
_____ 4. The first step in preparing a work sheet is to prepare this
report.
_____ 5. Cash received in advance of delivering a product or
performing a service.
A. contra-cost accounts
B. physical inventory
C. trial balance
D. contra-revenue accounts
E. unearned revenue
Section D
DIRECTIONS:
The trial balance and adjusted trial balance on the following page were prepared on the work sheet of YouCanSave, Inc., a discount hardware business owned by Franke Elgin, for the year ended December 31, 20--. Journalize the adjusting entries by working backward for the adjusted trial balance to the trial balance. (30 points total)
-----------------------
[pic]
[pic]
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- more practice for the final exam adjusting entries
- drill 9 d1 determining accounts affected by adjusting and
- answers to questions
- true false statements
- chapter 15 test 15b
- chapter 5—accounting for merchandising operations
- chapter 15 test 15a
- e2 7 accounting principles—comprehensive presented
- the university of houston
Related searches
- 16 1 chapter 15 capital structure basic
- chapter 15 capital
- psychology chapter 7 test questions
- psychology chapter 5 test answers
- psychology chapter 3 test questions
- psychology chapter 2 test answers
- psychology chapter 8 test answers
- psychology chapter 6 test answers
- chapter 15 9 maintaining transmission based
- chapter 15 section 1 pages 532 537
- chapter 15 operating system
- chapter 15 answers