The adjusting process zeroes out all revenue accounts and all expense accounts. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A company changes its inventory costing method each period in order to maximize net income. This is a violation of the consistency principle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month’s rent of $500. Mar 3 Purchased equipment by paying $2,000 cash and executing a note payable for $6,000. Mar. […]
Date: September 2nd, 2020
The following transactions for March have been journalized and posted to the proper accounts. Mar. 1 The business received $8,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month’s rent of $600. Mar 3 Purchased equipment by paying $1,000 cash and executing a note payable for $4,000. Mar. 4 Purchased office […]
Date: September 2nd, 2020
Under the perpetual inventory system, when a purchaser makes payment within the discount period, the amount of discount will be credited to the Merchandise Inventory account. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Credit terms of a merchandising company are 1/15, net 40. This means that the buyer can receive a discount of 1% if the invoice is paid within 40 days of the invoice date. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Which of the following entries would be made to record the purchase of inventory on account, if a company uses the perpetual inventory system? A) a debit to Purchases and a credit to Accounts Payable B) a debit to Accounts Payable and a credit to Purchases C) a debit to Merchandise Inventory and a credit […]
Date: September 2nd, 2020
In which of the columns of a worksheet would a net loss be found? A) in the balance sheet credit column and the income statement debit column B) in the balance sheet debit column and the income statement credit column C) in the unadjusted trial balance credit column, the adjusted trial balance credit column, and […]
Date: September 2nd, 2020
A company using the perpetual inventory system purchased merchandise on account for $5,000. Give the journal entry to record this transaction. What will be an ideal response ANSWER Merchandise Inventory 5,000 Accounts Payable 5,000
Date: September 2nd, 2020
The sum of all the depreciation expenses recorded to date for a depreciable asset is called residual value. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
