Where does net income appear on a worksheet? A) Net income appears only in the income statement debit column. B) Net income appears in the balance sheet credit column and in the income statement debit column. C) Net income appears in the income statement credit column and in the balance sheet debit column. D) Net […]
Date: September 2nd, 2020
Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet? A) The company made a net profit. B) The company incurred a net loss. C) The retained earnings account decreased during the period. D) An error was made. ANSWER A
Date: September 2nd, 2020
The Merchandise Inventory account is an expense account that is used for goods purchased that the business owns and intends to resell to customers, as well as for purchase of office supplies and equipment. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A purchase discount is the amount offered to the purchaser for delaying the payment to the seller. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
In the case of a deferred expense, the adjusting entry required at the end of a period will consist of a credit to the Prepaid Expense account. Assume the deferred expense was initially recorded as an asset. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction? A) B) C) D) ANSWER D
Date: September 2nd, 2020
Nurix, Inc. sold goods on credit terms n/20 to Jelly Harper, Inc. This means no discounts are offered, and the amount of the invoice is due 20 days after the invoice date. 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
