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
For each transaction, identify which account is debited and which account is credited. Use proper account titles Transaction Debit Credit Received a bill for utilities to be paid next month Performed services on account Paid cash for a 12-month insurance policy, coverage starting next month Paid rent for the current month Borrowed cash from the […]
Date: September 2nd, 2020
After posting the journal entries from the journal to the ledger, the accounting equation should be in balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The main expense of a merchandiser is usually ________. A) cost of goods sold B) current assets C) selling and administrative expenses D) production overhead ANSWER A
Date: September 2nd, 2020
G-mart, a small-scale grocer, wants to introduce an inventory system to track its inventory. G-mart does not currently use optical scanning registers and computer systems. The perpetual inventory system is most suitable for its operations. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The depreciation method that allocates an equal amount of depreciation each year is called the straight-line method. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following is true of a completed worksheet? A) The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column. B) The total debits in the income statement column equal the total credits in the balance sheet column. C) The total debits in the income […]
Date: September 2nd, 2020
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
