WorksheetsAC331_Review
Total questions: 14
Worksheet time: 21mins
What of this is NOT a rule for adjusting journal entries
Debits equal credits
Cash account is never used
There is at least one income statement and one balance sheet account
Will always reduce net income
What of the following accounts will NOT be closed in the process of closing
Sales Revenue
Interest Receivable
Interest Income
Cost of goods sold
If a business prepays 12 months insurance on Oct 1; how many months insurance cost should be expensed as of Dec 31
12 months
3 months
9 months
2 months
Depreciation expense is always accounted as
Debit Depreciation Expense, Credit Accumulated Depreciation
Debit Accumulated Depreciation, Credit Depreciation Expense
Debit Depreciation Expense, Credit Property, Plant & Equipment
Debit Property, Plant & Equipment, Credit Depreciation Expense
Alpha Incorporated has $45,000 debit balance in dividend account and $80,000 credit balance in Retained Earnings account before closing dividends. After closing dividends, the balance in Retained Earnings is:
$35,000 credit
$125,000 credit
$35,000 debit
$125,000 debit
Working capital is defined as current assets less current liabilities. Which of the following will NOT be considered in the working capital calculation
Interest receivable in 6 months
Short term investments maturing in 9 months
Investments that not intended for sale in the next 12 months
Unearned revenue that will be earned equally over the next 4 months
How will depreciation expense and gain on sale of investments be adjusted in the cash flow statement (cash flows from operating activities)
Both will be added to Net Income
Both will be deducted from Net Income
Depreciation will be deducted; Gain will be added
Depreciation will be added; Gain will be deducted
In order to compute the present value of future annual cost savings that are expected to be realized at the end of each year, which of the following factors have to be used
Present value of an ordinary annuity
Present value of an annuity due
Present value of a single sum
Future value of an ordinary annuity
In order to determine the price of a bond issued for 10 years with a market interest rate of 7% and coupon rate of 8%, interest payable semi annually, you will use the present value factor of:
i = 7.0%; n = 10
i = 4.0%; n = 20
i = 3.5%; n = 20
i = 8.0%; n = 10
How much revenue is recognized in the year ending Dec 31, 2023 on the sale of a ski pass on Oct 1, 2023 for $1,200. The pass is valid from Jan 1, 2024 to May 31, 2024 and is expected to be used evenly each month
$1,200
0
$300
$900
The balance in the allowance for uncollectible accounts is $5,000 (debit) before current year’s adjustment. At the end of the current year, the company estimates the allowance should be at $3,000 (credit). The adjusting entry will involve:
Debit to allowance account for $3,000
Credit to allowance account for $3,000
Credit to allowance account for $8,000
Debit to allowance account for $8,000
A company sells $4,000 of merchandise at terms 2/10; net 30. It uses the net method of accounting. Accounts receivable will be recorded at:
$4,000
$3,920
$3,998
$3,970
A retailer of toys uses periodic inventory system. On Dec 7, 2023 it sold toys for $1,000 to a customer on credit (which the retailer bought for $850 in Nov). The transaction will involve
2 journal entries - one to record revenue and one to record cost of goods sold
1 journal entry - to record revenue
1 journal entry - to record cost of goods sold
2 journal entries - one to record revenue and one to record purchases
In deflationary times, which of the following inventory cost assumption will result in highest net income
Depends on sales prices
Average
FIFO
LIFO
