Câu hỏi 1

In recording the cost of merchandise sold based on data available from perpetual inventory records, the
journal entry is a
Select one:
a. debit to Merchandise Inventory and a credit to Cost of Merchandise Sold
b. debit to Accounts Receivable and a credit to Merchandise Inventory
c. debit to Cost of Merchandise Sold and a credit to Sales
d. debit to Cost of Merchandise Sold and a credit to Merchandise Inventory
Câu hỏi 2

Which one of the following adjustments decreases net income for the period?
Select one:
a. Recognition of services that had been provided to customers but the cash has not yet been received
b. Recognition of interest on a note receivable
c. Recognition of depreciation on plant assets
d. Recognition of rent as earned that had been received in advance from customers
Câu hỏi 3

At the end of the fiscal year, the usual adjusting entry to recognize accrued revenues was omitted. Which
of the following is true?
Select one:
a. the balance sheet and income statement will be misstated but the statement of stockholders' equity will
be correct for the current year
b. total assets will be understated at the end of the current year
c. total liabilities will be understated
d. net income will be overstated for the current year
Câu hỏi 4

Based on its income for the month, Reel Company estimates that federal income taxes for the month of
May will be $11,000. What is the effect of the adjustment on the financial statements?

Select one:
a. Increase net income
b. Decrease income taxes payable
c. Increase retained earnings
d. Increase income taxes expense
Câu hỏi 5

Inventory shrinkage is journalized when
Select one:
a. there is a difference between the physical count of inventory and the perpetual inventory records
b. merchandise is returned by a buyer
c. merchandise purchased from a seller is incomplete or short


d. merchandise is returned to a seller
Câu hỏi 6

Blanton Company bought equipment on January 1, 2013, with a cost of $160,000, an estimated residual
value of $40,000, and an estimated life of 15 years. It was depreciated by the straight-line method for four
years. Due to obsolescence, it was determined at the beginning of 2017 that the useful life should be
shortened by three years and the residual value changed to zero. What is the accumulated depreciation at
the end of 2016?
Select one:
a. $42,667
b. $40,000
c. $8,000
d. $32,000
Câu hỏi 7

Remaz Corp. purchased equipment at a cost of $220,000 in January, 2016. As of January 1, 2017,

depreciation of $160,000 had been recorded on this asset. Depreciation expense for 2017 is $50,000. After
the adjustments are recorded and posted at December 31, 2017, what are the balances for Equipment and
Accumulated Depreciation?
Equipment
Select one:

Accumulated Depreciation

a.
$220,000

$0

b.
$220,000

$210,000

c.
$160,000

$ 50,000

d.
$120,000

$210,000

Câu hỏi 8


Capitalizing an expenditure rather than recording it as a revenue expenditure
Select one:
a. affects the total book value of plant assets on the balance sheet, but has no effect on the amount of net
income reported during an accounting period.
b. affects the total book value of plant assets reported on the balance sheet and the amount of net income
reported during a period.


c. has no effect on the book value of plant assets on the balance sheet or the amount of income reported
on the income statement.
d. affects the amount of net income reported during an accounting period, but has no effect on the total
book value of plant assets on the balance sheet.
Câu hỏi 9

Corbit Corp. sold merchandise for $10,000 cash. The cost of merchandise sold was $7,590. The journal
entries for this transaction under the perpetual inventory system would be
Select one:
a. Cash
Merchandise Inventory
Cost of Merchandise Sold
Sales

10,000
10,000
7,590
7,590

b. Cash
Sales
Cost of Merchandise Sold

Merchandise Inventory

10,000
10,000
7,590
7,590

c. Cash
Sales
Cost of Merchandise Sold
Merchandise Inventory

7,590
7,590
7,590
7,590

d. Cash
Sales
Cost of Merchandise Sold
Merchandise Inventory

10,000
10,000
10,000
10,000

Câu hỏi 10

Đoạn văn câu hỏi

Determine income from operations for Jonas Company based on the following data:
Sales
Operating expenses
Cost of merchandise sold
Select one:

$764,000
52,500
538,000

a. $226,000
b. $711,500
c. $485,500
d. $173,500
Câu hỏi 11

Đoạn văn câu hỏi
Which term is applied to the excess of revenue from sales over the cost of merchandise sold?


Select one:
a. gross sales
b. net income
c. income from operations
d. gross profit
Câu hỏi 12

As a general rule, revenue is recognized at the point of sale. Which one of the following situations
illustrates this rule?
Select one:

a. Interest is collected from amounts loaned to employees.
b. Products are sold to customers on credit with payment due in 30 days.
c. Employees are paid wages the week after the wages are earned.
d. Products are purchased for resale purposes.
Câu hỏi 13

On January 1, 2017, Petersen Corp. sold a piece of equipment for $3,000 which it had used for several
years. The equipment had cost $13,000, and its accumulated depreciation amounted to $9,000 at the time
of the sale. What are the net effects on the accounting equation of selling the equipment?
Select one:
a. Assets and Stockholders' Equity increases $1,000.
b. Assets and Stockholders' Equity decrease $1,000.
c. Assets and Stockholders' Equity decrease $3,000.
d. Assets decrease and Stockholders' Equity increases $3,000.
Câu hỏi 14

Prior to the adjusting process, accrued revenue has
Select one:
a. been earned and cash received
b. not been earned but recorded as revenue
c. not been recorded as revenue but cash has been received
d. been earned and not recorded as revenue
Câu hỏi 15

Expenses can be matched against revenue
Select one:
a. if the earnings process is not complete.
b. when payment is made for costs related to revenue.
c. through allocation to the accounting periods in which the benefits are recognized.
d. when cash is collected from the sale of products.



Câu hỏi 16Fox Auto

sold merchandise to a customer for $3,000 on credit on March 10. The customer
paid Fox Auto the amount due on March 31. Under the accrual basis of accounting, which of the
following statements is true?
Select one:
a. The March 31 transaction has no effect on total assets under the accrual basis.
b. The March 10 transaction increases revenue, but has no effect on assets because cash has not been
received.
c. Revenue is recognized after the cost of the merchandise sold has been paid by Fox Auto.
d. Fox Auto will recognize the revenue on March 31.
Câu hỏi 17

Data for an adjusting entry described as "accrued revenue, $3,100" requires a
Select one:
a. debit to Unearned Income and a credit to Accounts Receivable
b. debit Fees Earned and a credit Revenue
c. debit to Accounts Receivable and a credit to Fees Earned
d. debit Fees Earned and a credit Accounts Receivable
Câu hỏi 18

A company forgot to record four adjustments during 2017. Which one of the following omissions of
adjustments will understate net income?
Select one:
a. Sales made during the last week of the period are not recorded.
b. Prepaid insurance is not reduced for the portion of the policy that has expired during the period.
c. Interest on monies borrowed has not yet been recorded.
d. Income taxes owed but not yet paid are ignored.

Câu hỏi 19

If merchandise sold on account is damaged in shipment, the seller may inform the customer of a reduction
to the customer’s account by issuing a
Select one:
a. purchase invoice
b. debit memo
c. sales invoice
d. credit memo
Câu hỏi 20

Accumulated depreciation
Select one:
a. is allocated as an expense during future periods.
b. increases when the monthly adjustment for depreciation is recognized.
c. is reported on the income statement with the expense accounts.


d. decreases when the monthly adjustment for depreciation is recognized.
Câu hỏi 21

Which one of the following adjustments increases net income for the period?
Select one:
a. Recognition of rent costs that had been paid to the landlord in advance
b. Recognition of the amount of supplies used
c. Recognition of wages earned, but not paid to employees
d. Recognition of interest on a note receivable
Câu hỏi 22

Accumulated Depreciation and Depreciation Expense are classified, respectively, as

Select one:
a. contra asset, expense
b. asset, contra liability
c. expense, contra asset
d. revenue, asset
Câu hỏi 23

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as
a(n)
Select one:
a. contra asset
b. stockholders' equity
c. liability
d. asset
Câu hỏi 24

Which account is not classified as a selling expense?
Select one:
a. Sales Salaries
b. Cost of Merchandise Sold
c. Delivery Expense
d. Advertising Expense
Câu hỏi 25

Jacob Co. sells merchandise on account to Isaiah Co. for $9,700. The invoice is dated on May 1 with
terms of 1/15, net 45. What is the discount, and up to what date must the invoice be paid in order for the
buyer to take advantage of the discount?
Select one:
a. $97, May 15
b. $194, May 15



c. $97, May 16
d. $194, May 16
Câu hỏi 26

Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a
7% state sales tax. The journal entry for the sale would include a credit to
Select one:
a. Sales for $6,240
b. Sales Tax Payable for $420
c. Cash for $6,000
d. Sales for $5,580
Câu hỏi 27

All of the following describe a revenue except a revenue
Select one:
a. can result in the settlement of liabilities from the delivery or distribution of goods.
b. can result in the settlement of liabilities from rendering services.
c. can result in the inflow of assets.
d. must involve an inflow of assets.
Câu hỏi 28

Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as
Select one:
a. selling expenses
b. general expenses
c. administrative expenses
d. other expenses
Câu hỏi 29


Under which method are revenues and expenses recognized in the same accounting period that cash
receipts and payments occur?
Select one:
a. Under the adjusting method of accounting
b. Under the cash basis of accounting
c. Under both the cash and accrual basis of accounting
d. Under the accrual basis of accounting
Câu hỏi 30

Davis Corp. has three employees. Each earns $600 per week for a five-day workweek ending on Friday.
This month the last day of the month falls on a Wednesday. The company should make which of the
following adjusting entries?
Select one:
a. Credit Wages Expense for $1,800 and debit Wages Payable for $1,800


b. Debit Wages Expense for $360 and credit Wages Payable for $360
c. Debit Wages Expense for $1,800 and credit Wages Payable for $1,800
d. Credit Wages Expense for $360 and debit Wages Payable for $360
Câu hỏi 31

Cumberland Co. sells $2,000 of merchandise to Hancock Co. for cash. Cumberland paid $1,250 for the
merchandise. Under a perpetual inventory system, which of the following is the correct journal entry(ies)?
Select one:
a. debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit
Merchandise Inventory, $1,250
b. debit Cash, $2,000; credit Merchandise Inventory, $2,000
c. debit Cash, $1,250; credit Sales, $1,250
d. debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250;

credit Merchandise Inventory, $1,250
Câu hỏi 32

Which of the following accounts is not closed to Income Summary at the end of the accounting period?
Select one:
a. Service Revenue
b. Rent Expense
c. Unearned Revenue
d. Supplies Expense
Câu hỏi 33

In 2013, Blanton Company bought equipment with a cost of $160,000, an estimated residual value of
$40,000, and an estimated life of 15 years. It was depreciated by the straight-line method for four years.
Due to obsolescence, it was determined at the beginning of 2017 that the useful life should be shortened
by three years and the residual value changed to zero. The depreciation expense for 2017 is
Select one:
a. $16,000.
b. $11,000.
c. $11,636.
d. $8,000.
Câu hỏi 34

When is revenue from the sale of merchandise normally recognized?
Select one:
a. When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit
b. Either on the date on which the sale occurs, or the date on which the customer pays
c. When the customer pays for the merchandise
d. On the date the sale is made
Câu hỏi 35



Which of the following items would not affect the cost of merchandise inventory acquired during the
period?
Select one:
a. purchases discounts
b. sales commissions
c. quantity discounts
d. freight in
Câu hỏi 36

Wexford Co.
Wexford Co. purchased a new delivery truck at the beginning of 2017. The truck has a cost of $37,000, an
estimated life of five years, and an estimated residual value of $7,000. A full year's depreciation expense
is to be recorded in 2017. The truck was driven 20,000 miles during 2017 and 24,000 miles during 2018.
The number of expected miles over five years is 100,000.
Refer to the information for Wexford Co.
Wexford is comparing the straight-line and double-declining-balance depreciation methods. Of these two
methods, which method creates the larger expense and larger tax savings in 2017?
Select one:
a. Straight-line depreciation creates both the larger expense and the larger tax savings.
b. Straight-line depreciation creates the larger expense, while double-declining-balance depreciation
creates the larger tax savings.
c. Double-declining-balance depreciation creates the larger expense, while straight-line depreciation
creates the larger tax savings.
d. Double-declining-balance depreciation creates both the larger expense and the larger tax savings.
Câu hỏi 37

Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the
merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for defective merchandise,
which was not returned to Abbey. Gomez Co. paid the invoice within the discount period. What is the

gross profit earned by Abbey Co. on these transactions?
Select one:
a. $6,272
b. $30,772
c. $10,500
d. $31,400
Câu hỏi 38

In a merchandising business, operating income plus operating expenses is equal to
Select one:
a. cost of merchandise sold


b. gross profit
c. sales
d. cost of merchandise available for sale
Câu hỏi 39

Failure to record accrued interest expense would result in which of the following?
Select one:
a. Liabilities being overstated
b. Assets being overstated
c. Liabilities being understated
d. Assets being understated
Câu hỏi 40

Merchandise is ordered on November 10; the merchandise is shipped by the seller and the invoice is
prepared, dated, and mailed by the seller on November 13; the merchandise is received by the buyer on
November 18; and the entry is made in the buyer's accounts on November 20. The credit period begins
with what date?

Select one:
a. November 10
b. November 18
c. November 13
d. November 20