The accountant for Hobson Electrical Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following statements is true? A) The total revenue will be overstated. B) The total revenue will be understated. C) The total expenses will be overstated. […]
Date: September 2nd, 2020
The accountant of Skyscrapers Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense. Which of the following statements is true? A) The total liabilities will be overstated. B) The equity will be understated. C) The total assets will be overstated. D) The total assets will be understated. ANSWER C
Date: September 2nd, 2020
Journalize the following transactions for a merchandiser that uses the perpetual inventory system. On January 8, inventory was sold for $6,000 on account. Credit terms were 3/15, n/30 (cost $4,500 ) On January 17, cash was received in full settlement of the January 8 sale. What will be an ideal response ANSWER Jan. 8 Accounts […]
Date: September 2nd, 2020
Under the last-in, first-out (LIFO) method, the cost of goods sold is based on the oldest purchases. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Office Supplies, Inc. uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required. July 3 Sold $15,400 of merchandise on account, credit terms are 2/10, n/30 Cost of goods is $9,300. July 7 Received a $750 sales return from the customer. Cost of the goods is $435. July […]
Date: September 2nd, 2020
Which of the following describes a firewall? A) a malicious program that enters program code or destroys data without authorization B) when two or more people cooperate together to defraud a company C) a technique for protecting data D) when a company defrauds its suppliers by making false claims ANSWER C
Date: September 2nd, 2020
The use of computer firewalls is an essential element of good internal controls for e-commerce. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The accountant of Zeus Legal Services failed to make an adjusting entry for supplies that had been used for the year. Assume the supplies were initially recorded as an asset. Which of the following statements is true? A) The total liabilities will be overstated. B) The equity will be understated. C) The total assets will […]
Date: September 2nd, 2020
Refer to the following adjusted trial balance Accounts Debit Credit Cash $15,500 Accounts Receivable 8,400 Office Supplies 900 Equipment 9,400 Accumulated Depreciation— Equipment $3,000 Accounts Payable 1,800 Salaries Payable 700 Unearned Revenue 550 Common Stock 3,900 Dividends 1,000 Service Revenue 52,050 Salaries Expense 23,000 Supplies Expense 2,200 Depreciation Expense— Equipment 1,600 Total $62,000 $62,000 What […]
Date: September 2nd, 2020
A pharmaceutical company testing drugs to determine possible side effects is a part of ________. A) monitoring controls B) information systems C) control procedures D) risk assessment ANSWER D
Date: September 2nd, 2020
