When using the weighted-average inventory costing method in a perpetual inventory system, a new weighted average cost per unit is computed at the end of each quarter. Indicate whether the statement is true or false ANSWER FALSE .A new weighted average cost per unit is computed after each purchase.
Date: September 2nd, 2020
What is the effect of the adjusting entry for Depreciation Expense? A) It increases total liabilities and increases total expenses. B) It increases total assets and increases total expenses. C) It decreases total assets and increases total expenses. D) It decreases total liabilities and increases total expenses. ANSWER C
Date: September 2nd, 2020
At Radiant, Inc., the sales department is also responsible for recording cash transactions as it does not have a separate accounting department. In the above situation, which internal control procedure needs strengthening? A) assignment of responsibilities B) competent, reliable, and ethical personnel C) separation of duties D) documents ANSWER C
Date: September 2nd, 2020
Which of the following inventory costing methods requires the calculation of a new average cost after each purchase? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out ANSWER B
Date: September 2nd, 2020
At Cadmia Services, the cashier collects checks and cash from customers, and the junior accountant records the transactions in the journal. The controller approves the journal entries and bank reconciliations The treasurer signs checks and approves contracts. Which internal control procedure is exemplified in the above situation? A) assignment of responsibilities B) competent, reliable, and […]
Date: September 2nd, 2020
At the end of the current year, the accountant for Colorful Graphics, Inc. forgot to make an adjusting entry to accrue Wages Payable to the company’s employees for the last week in December. The wages will be paid to the employees in January Which of the following is an effect of this error? A) Net […]
Date: September 2nd, 2020
The accountant for Noble Jewelry Repair Services, Inc. forgot to make an adjusting entry for Depreciation Expense for the current year. Which of the following is an effect of this error? A) Revenues are understated. B) Total assets are understated. C) Net income is overstated. D) Total liabilities are understated. ANSWER C
Date: September 2nd, 2020
A company purchased 300 units for $60 each on January 31. It purchased 150 units for $25 each on February 28. It sold a total of 250 units for $70 each from March 1 through December 31 If the company uses the weighted-average inventory costing method, calculate the amount of ending inventory on December 31. […]
Date: September 2nd, 2020
The post-closing trial balance shows the net income for the period just ended. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Only permanent accounts appear on the post-closing trial balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
