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WorksheetsCoB 241 Review (ch 1-5)
Total questions: 39
Worksheet time: 9mins
Which type of accounting refers to information for external stakeholders?
Managerial Accounting
Financial Accounting
External Accounting
Cost Accounting
Which type of accounting refers to information for internal stakeholders?
Managerial Accounting
Financial Accounting
External Accounting
Cost Accounting
Which of the following are sections of a 10-k (Annual report) - check all that apply
Management's Discussion & Analysis
The financial statements
Auditor's Report
Footnotes to the financial statements
What are the accounting rules in the U.S. called?
General financial reporting rules
Generally accessed auditing pronouncements
Financial Accounting Standards Board
Generally accepted accounting principles
Who sets accounting standards in the U.S.?
ACC
IASB
FASB
PCAOB
What are dividends?
distributions to shareholders
an expense
payments from common stock
payments to merchandise suppliers
Which of the following are included in Shareholders' Equity? (check all that apply)
assets
retained earnings
liabilities
common stock
What's retained earnings?
this year's revenues less this year's dividends
the accumulation of all net income less all dividends
not spending my money from my job
revenues that I keep by not spending any on expenses
Which one of the following is NOT a source of financing?
using retained earnings
dividends
creditors (debt)
owners (investors)
Which of the following are legitimate rules of journal entries? (check all that apply)
only two accounts will be affected by any one journal entry
debits should be indented to the right
there must be at least one debit and at least one credit
all debits must equal all credits
In which of the following groups do all the types of accounts have a normal credit balance?
common stock, retained earnings, and revenues
assets, expenses, and losses
liabilities, retained earnings, and losses
expenses, liabilities, and common stock
What does "recognize" mean in accounting?
"Understand"
"Record"
"I see you"
"Balance"
Under a cash basis of accounting, we recognize revenues when they are _____________ .
Earned
Received
Balanced
Lit
Under an accrual basis of accounting, we recognize expenses when they are _____________ .
Earned
Paid
Incurred
Balanced
U.S. GAAP represents which type of accounting?
Accrual basis accounting
Cash basis accounting
Outdated accounting
Representative accounting
What happens if you fail to make an adjusting entry that should have been made?
I need more info to answer this
cash account will be understated
Net income will be incorrect
The cash account will be overstated
If I record a liability because of a prepayment received (a deferral), what will this liability eventually convert to?
an expense
a car (like a transformer)
an asset
a revenue
Which of the following are temporary accounts? (check all that apply)
cost of goods sold
retained earnings
transportation-out
unearned revenue
What does the term "posting" mean in accounting?
Commenting on facebook
Recording a journal entry
Creating the financial statements
Recording the journal entries into the t-accounts
When do you do adjusting entries?
After the adjusted trial balance
After closing entries
When your mom tells you to
Before you do the financial statements
What do we call the process of emptying out temporary accounts into retained earnings?
annoying
posting
the accounting cycle
closing
What is the beginning balance of salaries expense for 2024?
huh?
zero
the ending balance from 2023 plus any adjusting entries
the ending balance from 2023
Which of the following appear on the balance sheet? (check all that apply)
Unearned Revenue
Retained Earnings
Supplies Expense
Dividends
Where are the t-accounts housed?
General Journal
In fancy apartments
Subsidiary Journal
General Ledger
We record assets at their ___________
Historical cost
Inherent value
Future value
Market value
What's the formula for gross margin?
Sales revenue - sales discounts - sales returns and allowances
Net Sales Revenues - cost of goods sold
Net Sales Revenues - expenses
beginning retained earnings + net income - dividends
Which costs get included in the merchandise inventory account? (check all that apply)
Product costs
Period costs
Transportation-in
Transportation-out
What account do you debit when you are the buyer purchasing inventory with shipping terms FOB Shipping Point
inventory
tranportation-out
shipping expense
no journal entry required
Who pays for shipping under FOB destination?
they split it
bill gates
seller
buyer
Name the account that merchandise inventory gets converted to when the inventory is sold
supplies expense
gross profit
sales revenue
Cost of Goods Sold
How do you calculate cost of goods available for sale in a period? (check all that apply)
ax + bx2 + C
beginning inventory plus inventory purchases
cost of merchandise sold plus ending inventory
sales revenue less cost of goods sold
What's an allowance?
When you get your money back but just keep the damaged goods
When you return goods and get your money back
when your parents give you money for doing chores
When you offer a discount for paying early
How long does the buyer have to make payment and get the discount under the terms 2/15 net 30
30 days
15 days
net days
2 days
If I am crediting "gain on sale of land" in a journal entry, what must have happened?
I switched majors to accounting!!
I sold some land for more than I had originally paid for it
I sold some land for its historical cost
I sold some land for less than I had originally paid for it
What do we call losses from inventory due to theft, obsolescence, damage, etc.?
obsolescence expense
inventory shrinkage
unfortunate
none of the above
What do we call the form of the income statement that separates out gross margin?
gross margin income statement
merchandiser income statement
classified income statement
multi-step income statement
______ would produce the highest cost of goods sold in an inflationary environment.
LIFO
FIFO
Weighted average
_____ would produce the highest amount of assets (ending inventory balance) in an inflationary environment.
FIFO
LIFO
weighted average
I'm gonna ace Exam 2!!!!!!!
Yes!!!
No, I'd rather not
Where am I?
