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 […]
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
Which of the following is true of the internal control component—information system? A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) Control procedures are designed to ensure that the business’s goals are achieved. C) Only authorized users have access to […]
Financial statements are prepared from the balances in a(n) ________. A) general journal B) chart of accounts C) unadjusted trial balance D) adjusted trial balance ANSWER D
South Meadows, Inc. sold 500 units of inventory at $25 per unit on account. The company uses the perpetual inventory system. The cost of the units sold was $10 per unit. Provide the journal entries to record the sale. What will be an ideal response ANSWER Accounts Receivable 12,500 Sales Revenue 12,500 Cost of Goods […]
Which of the following components of internal control consists of work performed by internal and external auditors? A) monitoring of controls B) information systems C) control procedures D) control environment ANSWER A
A company sold merchandise with a cost of $231 for $480 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include ________. A) a debit to Sales Revenue and a credit to Cash for $480 B) a debit to Cash and a credit to Sales […]
Under the perpetual inventory system, two journal entries are used to record the sales of merchandise. One entry records the Sales Revenue and another entry records the Cost of Goods Sold. Indicate whether the statement is true or false ANSWER TRUE
A company that uses the perpetual inventory system sold goods for $3,500 to a customer on account. The company had purchased the inventory for $900. Which of the following journal entries correctly records the cost of goods sold? A) Cost of Goods Sold 900 Sales Revenue 900 B) Merchandise Inventory 900 Cost of Goods Sold […]
Rosewood, Inc. earned revenues of $19,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $1,500. What is the balance in the Income Summary account after closing net income or loss to the Retained Earnings account? A) debit balance of $19,000 B) credit balance of $4,000 C) credit balance of $15,000 […]
