Final Exam Review

Question 1

If I purchased supplies on account, what account would I credit

Accepted Answer

Accounts Payable

Question 2

We sold 500 treasury shares costing $15 for $10, the debit to PIC from Treasury would be

Accepted Answer

1,500

Question 3

Based on the below, that is the net realizable value of the accounts receivable?

Accepted Answer

425,000

Question 4

A disadvantage to the corporate form of business is

Accepted Answer

Double Taxation

Question 5

When depreciating a long term asset like equipment, what account is credited?

Accepted Answer

Accumulated Depreciation

Question 6

If the allowance for UA has a credit balance of $600, what would be the bad debt expense?

Accepted Answer

1,700

Question 7

Dividends should be classified

Accepted Answer

as stockholders equity

Question 8

Based on the following, what is the estimated uncollectible accounts using the aging method?

Accepted Answer

2,300

Question 9

Which of the following is not part of Equity?

Accepted Answer

Deferred Revenue

Question 10

If the company sold 12 units, what is the Cost of Goods sold using FIFO:

Accepted Answer

2,600

Question 11

Which of the following is part of the fraud triangle?

Accepted Answer

Rationalization

Question 12

Borrowing funds from a bank would be considered a (an)

Accepted Answer

financing activity

Question 13

Which of the following accounts would show up on the income statement

Accepted Answer

Interest Expense

Question 14

Which of the following represents the accounting equation

Accepted Answer

Assets = Liabilities + Equity

Question 15

Accounts Receivable is

Accepted Answer

an asset

Question 16

Signed a 8 month, 6% note on 8/1/18 for $50,000. How much interest will be recorded at 12/31?

Accepted Answer

1,250

Question 17

Liabilities are

Accepted Answer

creditors claims against the assets

Question 18

Asset costing $40,000 that is 50% depreciated is sold for $25,000. What is the Gain or Loss?

Accepted Answer

5,000 Gain

Question 19

FOB Shipping Point indicates

Accepted Answer

buyer pays the freight, title transfers at shipment of goods

Question 20

Annual SL depreciation on a $45,000 building with $9,000 salvage value and 5 year life is?

Accepted Answer

7,200

Question 21

A 2 year insurance policy is paid for on 4/1/2017 for $12,000, what would be debited on 12/31?

Accepted Answer

Insurance Expense for 4,500

Question 22

Which account would be on the balance sheet?

Accepted Answer

Retained Earnings

Question 23

How do you calculate retained earnings?

Accepted Answer

Beginning Retained earnings + Net Income - Dividends

Question 24

If I purchased 1,500 in supplies but only 300 were on hand on 12/31, what would I debit?

Accepted Answer

Supplies Expense

Question 25

Which of the following is a current liability

Accepted Answer

deferred revenue

Question 26

What types of accounts are temporary?

Accepted Answer

Revenues & Expenses & Dividends

Question 27

Revenue should be recognized in the period

Accepted Answer

goods or services are provided

Question 28

Using the allowance method, the entry to record a write-off of AR will include:

Accepted Answer

A debit to Allowance for Uncollectible Accounts

Question 29

In a bank reconciliation, which of the following would be an adjustment to the bank balance?

Accepted Answer

Outstanding checks

Question 30

Prepaid Expenses are classified as

Accepted Answer

Assets

Question 31

A company issued 1,000 shares of $2 par common stock for $15,000, the entry to record the issuance would include a...

Accepted Answer

All of these would be included

Question 32

When recording depreciation, what account do you debit?

Accepted Answer

Depreciation Expense

Question 33

Based on the below, what is the Gross Profit of the company?

Accepted Answer

57,000

Question 34

How would you record the repurchase of 1,000 shares of $2 par stock at $12 per share?

Accepted Answer

A

Question 35

If the common stock has a $5 par and the common stock account has a balance of $1,200,000, how many shares were issued?

Accepted Answer

240,000

Question 36

If a company declared $50,000 in cash dividends, what entry would they record?

Accepted Answer

D

Question 37

Which of the following accounts would I close at the end of the accounting period

Accepted Answer

Service Revenue

Question 38

Deferred Revenue should have a normal

Accepted Answer

Credit Balance

Question 39

If the market rate is 10% and the stated rate is 8%, the issue price of a bond is

Accepted Answer

less than face value

Question 40

Based on the below information, what is the net sales for this company?

Accepted Answer

92,000

Question 41

Based on the below, what is the sales revenue for the company:

Accepted Answer

6,000

Question 42

If a $500,000 bond has a stated rate of 10% and is issued for face value, the market rate must

Accepted Answer

be 10%

Question 43

If the allowance for UA has a debit balance of $600, what is the bad debt expense?

Accepted Answer

2,900

Question 44

If you performed services on account, what account would be credited?

Accepted Answer

Service Revenue

Question 45

Signed a 8 month, 6% note on 8/1/18 for $50,000. How much interest will accrue on the note?

Accepted Answer

2,000

Question 46

If $5,000 in supplies were purchased and $4,500 were used, the adjusting entry would credit?

Accepted Answer

Supplies for $4,500

Question 47

The bond payable account should be recorded at

Accepted Answer

face value

Final Exam Review

Questions 47

Final Exam Review

Questions 47