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
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
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
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
Clark Sales sold 450 units of product to a customer on account. The company uses the perpetual inventory system. The selling price was $28 per unit, and the cost, according to the company’s inventory records, was $12 per unit Provide the journal entries to record the sale. What will be an ideal response ANSWER Accounts […]
Date: September 2nd, 2020
Henderson Sales purchased $6,000 of inventory on account. Provide the journal entry. (Assume a perpetual inventory system.) What will be an ideal response ANSWER Merchandise Inventory 6,000 Accounts Payable 6,000
Date: September 2nd, 2020
If a company fails to make an adjusting entry for accrued revenues, the net income will be overstated. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
If a company fails to make an adjusting entry for deferred expense, the assets will be overstated. Assume the deferred expense is initially recorded as an asset. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
What is the result if the amount of net income for the year is less than the amount of the Dividends? A) Retained Earnings increases B) Cash balance decreases C) Cash balance increases D) Retained Earnings decreases ANSWER D
Date: September 2nd, 2020
