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WorksheetsGW Accounting Final
Total questions: 50
Worksheet time: 15mins
What is the definition of a Debit (Dr.)?
Left side T account; increases assets amounts
Right side T Account; increases liabilities & owner's equity
T Accounts are visual representation of a financial transaction
True
False
Accounts Payable
increases liability and is a credit
increases assets and is a debit
Inventory
increases liability and is a credit
increases assets and is a debit
An example of paying $15,500 for inventory on account is:
Credit $15,500 Accounts Payable; Debit $15,500 Inventory
Debit $15,500 Accounts Payable; Credit $15,500 Inventory
T-shirts R Us pays Custom Ink $15,500 for shirts on account what do T-accounts look like?
Credit $15,500 cash; Debit $15,500 Accounts Payable
Credit $15,500 Accounts Payable; Debit $15,500 cash
Accounts Payable is a(n)
Liability; what company owes; i.e. rent, phone bills
Asset; what company owns; amounts due from customers
Accounts Receivable increases account; is an asset and a debit
True
False
Sales decreases accounts; increases liabilities; and is a debit
True
False
Sales increases owner's equity and is a credit
True
False
If a client pays Happy Tails $4,500 due for a birthday what do T-accounts look like?
Credit $4,500 cash, Debit $4,500 Accounts Receivable
Debit $4,500 cash; Credit $4,500 Accounts Receivable
Happy Tails takes out a loan for $10,000 due in a year. What do T accounts look like?
Credit $10,000 cash; Debit $10,000 Notes Payable
Debit $10,000 cash; Credit $10,000 Notes Payable
How much interest per month if $1,200 is due at the end of the year on $10,000?
$100/month
$10/month
$933.33/month
$110/month
Happy Tails has loan for $10,000 due 1 year, with $1,200 interest. T-accounts monthly are:
Credit Interest Expense; Debit Interest Payable
Credit $100 Interest Expense; Debit $100 Interest Payable
Debit Interest Expense; Credit Interest Payable
Debit $100 Interest Expense; Credit $100 Interest Payable
Happy Tails Loan Interest T-accounts at end of year reflect the following accounts:
Debit $100 Interest Expense; Credit $100 Interest Payable & Credit $1,200 Cash; Debit $1,200 Interest Payable
Credit $100 Interest Expense; Debit $100 Interest Payable & Debit $1,200 Cash; Credit $1,200 Interest Payable
Double Entry Accounting is
Entering every transaction into 4 accounts
Entering every transaction into at least 2 accounts
Entering every transaction into 3 accounts
Entering every transaction into 1 account
Journal entries are not records of financial transactions for a company.
True
False
Journal entries must go into General Ledger and
without account names, 1 debit & 1 credit; without balancing
have account names, at least 1 debit & 1 credit; & balance
without account names, 1 debit & 1 credit; & balance
have account names & beginning balance
Happy Tails pays $12,565 in salaries to staff. What would T accounts look like?
Debit $12,565 Salaries Payable; Credit $12,565 Cash
Credit $12,565 Salaries Payable; Debit $12,565 Cash
A balance sheet is
not a snapshot of financial position of a company in time.
a snapshot of financial position of a company in time.
snapshot of one company on the Forbes 500 list of companies in time.
Income Statement is like a video of
the earnings and expenses of a company over period of time.
the cash and notes payable of a company in a year..
the owner's equity & salary expenses of a company in a year.
the assets & expenses of a company in a year.
Statement of retained earnings shows
change in company's Retained earnings over time.
how much company spends in cash.
profits in five year increments.
Statement of cash flows shows
how much company brings in & spends in cash.
how much company spends in cash.
how much company spends in liabilities.
how much company earns in cash.
Cost of Goods Sold (COGS) is
the cost to create a product or service.
the profit of a product or service.
a record of each financial transaction for a company
Three different ways to calculate cost of products sold are:
LIFO, FIFO, Average
LIFO, COGS, FIFO
FIFO, COGS, Average
Average, LIFO, COGS
LIFO is
Last In, First Out
First In, First Out
Average of LIFO and FIFO
FIFO is
Last In, First Out
Average of LIFO & FIFO
First In, First Out
What 3 ways can a company record losses when customers don't pay?
% of Sales; % of Receivables; Direct Write Off
% of Income; % of Inventory; Indirect Write Off
% of Salaries; % of Accounts Payable; Direct Write Off
% of Inventory; % of Expenses; Direct Write Off
The extended form of the accounting equation is a(n)
Balance Sheet
Income Statement
Journal Entry
Double Entry Accounting
A balance sheet provides an overview of assets, liabilities and owner's equity.
True
False
What's Target's Net Income FIFO if $40,000 sales received in cash and COGS was $10,000?
$30,000
$25,000
$50,000
$22,500
What's Walmart's LIFO net income if they got $40,000 sales for COGS $6,000?
$32,000
$34,000
$46,000
$23,000
Journal entry for Target after they sold 2,000 DVD's for $20/each & used FIFO method is $5 as COGS for each DVD sold.
Debit $40,000 Cash and Credit $40,000 Sales; Debit $10,000 COGS and Credit $10,000 Inventory
Credit $40,000 Cash and Debit $40,000 Sales; Credit $10,000 COGS and Debit $10,000 Inventory
Company estimates that customers will not pay a certain percentage in Accounts Receivable is
Allowance for Doubtful Activities
Direct Write Off
% of Receivables
% of Payables
The company knows a certain dollar amount will not be repaid is
% of Receivables
% of Allowables
Direct Write Off
Allowance for Doubtful Activities
The company assumes that a certain % of the Accounts Receivable will not be repaid is
% of Reiveables
% of Sales
Direct Write Off
Allowance for Doubtful Accounts
Happy Tails’ Accounts Receivable had $530,000, 6% weren't paid. Allowance Doubtful Accounts is
$3,180
$31,800
$31,180
$31,880
Journal entry for Happy Tails sales $3,400,000 & credit sales were $2,900,000 & 1.5% of credit sales uncollected.
Debit $43,500 Bad Debt; Credit $43,500 Allowance Doubtful Accounts
Credit $43,500 Bad Debt; Debit $43,500 Allowance Doubtful Accounts
Debit $51,000 Bad Debt; Credit $51,000 Allowance Doubtful Accounts
Credit $51,000 Bad Debt; Debit $51,000 Allowance Doubtful Accounts
Gross Profit is
Revenue - Cost of Goods Sold (COGS)
Revenue - Non-Operating Expenses
Revenue - Operating Expenses
Revenue + Gains + Expenses + Losses
Operating Income is
Gross Profit - Operating Expenses
Gross Profit + Operating Expenses
Gross Profit + Operating Expenses - Non-Operating Expenses
Gross Profit + Operating Expenses + Non-Operating Expenses
Examples of operating expenses include all of the following except:
store rent
insurance payments
employee salaries
loss on investments
What was Happy Tails gross profit?
$1,800
$9,200
($6,275)
($7,400)
What was Happy Tails Operating Income?
$7,400
($7,400)
$1,125
($6,275)
What was Happy Tails net income?
($6,275)
($7,400)
$1,800
$9,200
Point of Contact (POC) information should include all of the following except:
Names
Addresses
Phone numbers
Mother's Maiden Name
Skills needed for an accounts payable position include all of the following except:
Vendor relationships
PC proficiency, data entry skills
Tracking budget expenses
Facility requests
Accounts Receivable job duties include all of the following except:
Post customer payments
Update receivables unpaid invoices
Verify account discrepancies
Computer Networking issues
Another name for Accounts Receivable Reports are "Aging Reports".
True
False
What transactions took place for Happy Tails from the Journal Entry below?
Happy Tails bought $2,000 fish; paid half by cash; rest on account
Happy Tails sold $2,000 fish; got half with cash; rest on account
Happy Tails bought $2,000 fish and paid for them with cash
Happy Tails bought $2,000 fish and put them on account
What is Walmart's current ratio for 2015?
.97
.31
.77
.74
