WorksheetsAccounting
Total questions: 40
Worksheet time: 1hrs 20mins
During 2019, Seisor Company's assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders' equity therefore
increased $40,000
decreased $140,000
decreased $40,000
increased $140,000
A trial balance will not balance if
a correct journal entry is posted twice
the purchase of supplies on account is debited to Supplies and credited to Cash
a $100 cash dividend is debited to Dividends for $100 and credited to Cash for $100.
a $45 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.
The cost of assets consumed or services used is also known as
a revenue
an expense
a liability
an asset
The proper order of the following steps in the accounting cycle is:
prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries.
journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post adjusting entries.
journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries.
prepare unadjusted trial balance, journalize and post adjusting entries, journalize transactions, post to ledger accounts.
Adjustments for unearned revenues:
decrease liabilities and increase revenues
have an assets-and-revenues-account relationship
increase assets and increase revenues
decrease revenues and decrease assets
As of December 31, 2019, Reed Company has assets of $3,500 and stockholders' equity of $1,500. What are the liabilities for Reed Company as of December 31, 2019?
$1,500
$1,000
$2,500
$2,000
The following are extracts from an income statement for the year ended 31 December, 2010. What is the value of ending balance in Income Summary Account?
250
350
900
750
As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31, 2019. This count did not take into consideration the following facts: Rogers Consignment store currently has goods worth $35,000 on its sales floor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Railway on January 3. Determine the correct amount of inventory that Railway should report.
$230,000
$215,000
$228,000
$193,000
Accumulated Depreciation is
a contra asset account
an expense account
a stockholders' equity account
a liability account
The closing process involves separate entries to close (1) expenses, (2) dividends, (3) revenues, and (4) income summary. The correct sequencing of the entries is:
4,3,2,1
1,2,3,4
3,1,4,2
3,2,1,4
Which of the following would not be included in the definition of inventory under IFRS?
Photocopy paper held for sale by an office-supply store
Stereo equipment held for sale by an electronics store
Used office equipment held for sale by the human relations department of a plastics company.
All of the above would meet the definition
On the last day of the period, Alan Cesska Company buys a $900 machine on credit. This transaction will affect the:
income statement only
balance sheet only
income statement and retained earnings statement only
income statement, retained earnings and balance sheet
Adjustments for accrued revenues:
have an liabilities-and-revenues-account relationship.
have an assets-and-revenues-account relationship.
decrease assets and revenues
decrease liabilities and increase revenues
Which of the following is not a step in the accounting process?
Identification
Economic entity
Recording
Communication
Which of the following statements is false?
A statement of cash flows summarizes information about the cash inflows (receipts) and outflows (payments) for a specific period of time
A balance sheet reports the assets, liabilities and stockholders' equity at a specific date
An income statement presents the revenues, expenses, changes in stockholders equity, and resulting net income or net loss for a specific period of time.
A retained earnings statement summarizes the changes in retained earnings for a specific period of time
Which of the following is not considered an asset?
Inventory
Accounts Receivable
Accounts Payable
Land
The financial statement that reports assets, liabilities, and stockholders' equity is the
income statement
retained earnings statement
balance sheet
statement of cash flows
When is a physical inventory usually taken?
(a) When the company has its greatest amount of inventory
(b) When a limited number of goods are being sold or received
(c) At the end of the company's fiscal year
Both (b) and (c)
Which method of inventory costing is prohibited under IFRS?
Specific identification
LIFO
FIFO
Average-cost
The Revenue Recognition Principle states that
revenue should be recognized in the accounting period in which a performance obligation is satisfied
expenses should be matched with revenues
the economic life of a business can be divided into artificial time periods
the fiscal year should correspond with the calendar year
The book value of an asset is equal to the
asset's fair value less its historical cost
blue book value relied on by secondary markets
replacement cost of the asset
asset's cost less accumulated deprecation
Closing journal entries
are the journal entry from of the statement of cash flows
are the journal entry from of the statement of retained earnings
must be performed every month
are used to make the account balance of permanent accounts zero
Current assets are listed
by expected conversion to cash
by importance
by longevity
alphabetically
Which of the following statements about users of accounting information is incorrect?
Management is considered an internal user
Taxing authorities are considered external users
Present creditors are considered external users
Regulatory authorities are internal users.
The trial balance of Stevens Corporation had accounts with the following normal balances: Cash $5,000, Service Revenue $85,000, Salaries and Wages Payable $4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000, Common Stock $42,000, Dividends $13,000, and Equipment $61,000. In preparing a trial balance, based on these amounts only, the total in the debit column is:
$116,000
$118,000
$129,000
$131,000
Use the following information to calculate net income (net loss) for the year ended December 31, 2019: Supplies 1 500, Service revenue 19 000, Other operating expenses 10000, Cash 15 000, Accounts payable 11 000, Dividends 6 000, Accounts receivable 4 000, Notes payable 1 000, Common stock 10 000, Equipment 9 500, Retained earnings (beginning) 5 000.
8000
5000
9000
12000
Jefferson Company purchased a piece of equipment on January 1, 2019. The equipment costs $60,000 and has an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2020 under the double-declining-balance method?
$6,500
$11,250
$15,000
$6,562
Bennie Razor Company has decided to sell one of its old manufacturing machines on June 30, 2019. The machine was purchased for $80,000 on January 1, 2015, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale?
$18,000
$54,000
$22,000
$46,000
The interest on a 10 000, 9%, 90-day note receivable is: (round to an integer)
900
220
150
225
Which of the following is not reported in the statement of cash flows?
The net change in stockholders' equity during the year.
Cash payments for plant assets during the year
Cash receipts from sales of plant assets during the year
How acquisitions of plant assets during the year were financed
Depreciation is a process of
valuation
cost allocation
cash accumulation
appraisal
The purchase of supplies on account should result in:
a debit to Supplies Expense and a credit to Cash
a debit to Supplies Expense and a credit to Accounts Payable
a debit to Supplies and a credit to Accounts Payable
a debit to Supplies Expense and a credit to Accounts Receivable
Which of the following is incorrect about the statement of cash flows?
It is a fourth basic financial statement
It provides information about cash receipts and cash payments of an entity during a period
It reconciles the ending cash account balance to the balance per the bank statement
It provides information about the operating, investing and financing activities of the business
In period of rising prices, LIFO will produce
higher net income than FIFO
the same net income as FIFO
lower net income than FIFO
higher net income than average-cost
Temporary accounts
close at the end of each accounting period
begin each accounting period with zero balance
include revenues, expenses and dividends
all of the above
none of the above
Poppins Company has the following:
1. Inventory, Jan. 1 8000 units that cost is $11
2. Purchase, June 19 13 000 units cost $12
3. Purchase, Aug. 28 5 000 units cost $13
If 9,000 units are on hand at December 31, the cost of the ending inventory under FIFO is:
$99,000
$108,000
$113,000
$117,000
The time period assumption states that
companies must wait until the calendar year is completed to prepare financial statements
companies record information in the time period in which the events occur
companies use the fiscal year to report
financial information
the economic life of a business can be divided into artificial time periods
An account that will have a zero balance after closing entries have been journalized and posted is
Service Revenue
Supplies
Prepaid Insurance
Accumulated Depreciation-Equipment
Debits
increase both assets and liabilities
decrease both assets and liabilities
increase assets and decrease liabilities
decrease assets and increase liabilities
A plant asset with a cost of $900,000 and accumulated depreciation of $800,000 is sold for $80,000. What is the amount of the gain or loss on disposal of the plant asset?
$20,000 loss
$80,000 loss
$80,000 gain
$20,000 gain
