Multiple Choice Question 90 The basic accounting equation may be expressed as O Assets = Equities. O Assets + Liabilities = Owner's Equity. O Assets = Liabilities + Owner's Equity. All of these answer choices are correct. Multiple Choice Question 90 The basic accounting equation may be expressed as Assets = Equities. o Assets + Liabilities = Owner's Equity. o Assets = Liabilities + Owner's Equity. O All of these answer choices are correct. Multiple Choice Question 98 Revenues would not result from o performance of services. O rental of property. sale of merchandise. o initial investment of cash by owner. Multiple Choice Question 100 The basic accounting equation cannot be restated as O Assets + Liabilities = Owner's Equity. O Assets - Liabilities = Owner's Equity. O Assets - Owner's Equity = Liabilities. O Owner's Equity + Liabilities = Assets. Multiple Choice Question 68 Which of the following statements is not true? O Expenses increase owner's equity. O Expenses have normal debit balances. O Expenses decrease owner's equity. O Expenses are a negative factor in the computation of net income. Multiple Choice Question 74 On June 1, 2020, Oriole Inc. reported a cash balance of $13100. During June, Oriole made deposits of $5100 and made disbursements totalling $15000. What is the cash balance at the end of June? $3200 credit balance $1900 credit balance $3200 debit balance O $18200 debit balance Multiple Choice Question 75 At January 1, 2020, Swifty Industries reported owner's capital of $152000. During 2020, Swifty had a net loss of $29200 and owner's drawings of $15300. At December 31, 2020, the amount of owner's capital is O $122800. $136700 O $167300. O $107500. Multiple Choice Question 84 A law firm received $3070 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause O revenues to be understated. O expenses to be overstated. net income to be overstated. O liabilities to be understated. Multiple Choice Question 84 A law firm received $3070 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause O revenues to be understated. O expenses to be overstated. net income to be overstated. O liabilities to be understated. Multiple Choice Question 86 Accrued revenues are O revenue for services performed and already received in cash and recorded. O cash received and a liability recorded before services are performed. O revenue for services performed and recorded as liabilities before they are received. O revenue for services performed but not yet received in cash or recorded. Multiple Choice Question 93 Coronado Company purchased supplies costing $7140 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $2010 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be O Debit Supplies, $2010; Credit Supplies Expense, $2010. O Debit Supplies Expense, $2010; Credit Supplies, $2010. O Debit Supplies Expense, $5130; Credit Supplies, $5130. O Debit Supplies, $5130; Credit Supplies Expense, $5130. Multiple Choice Question 76 The income statement for the month of June, 2020 of Metlock Inc. contains the following information: $7330 Revenues Expenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insurance Expense Total expenses Net income $2960 1530 880 300 100 5770 $1560 The entry to close the expense accounts includes a debit to Salaries and Wages Expense for $2960. credit to Rent Expense for $1530. debit to Income Summary for $1560. O credit to Income Summary for $5770. Multiple Choice Question 77 The income statement for the month of June, 2020 of Coronado Inc. contains the following information: $6770 Revenues Expenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insurance Expense Total expenses Net income $3010 1460 760 310 100 5640 $1130 After the revenue and expense accounts have been closed, the balance in Income Summary will be O a credit balance of $1130. O a debit balance of $1130. O a debit balance of $6770. O a credit balance of $6770. Multiple Choice Question 79 The income statement for the month of June, 2020 of Teal, Inc. contains the following information: $7280 Revenues Expenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insurance Expense Total expenses Net income $2960 1450 850 300 100 5660 $1620 Multiple Choice Question 79 The income statement for the month of June, 2020 of Teal, Inc. contains the following information: $7280 $2960 1450 Revenues Expenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insurance Expense Total expenses Net income 850 300 100 5660 $1620 At June 1, 2020, Teal reported owner's equity of $33200. The company had no owner drawings during June. At June 30, 2020, the company will report owner's equity of O $27540. O $33200. $34820. O $40480. Multiple Choice Question 79 The income statement for the month of June, 2020 of Teal, Inc. contains the following information: $7280 $2960 1450 Revenues Expenses: Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense Insurance Expense Total expenses Net income 850 300 100 5660 $1620 At June 1, 2020, Teal reported owner's equity of $33200. The company had no owner drawings during June. At June 30, 2020, the company will report owner's equity of O $27540. O $33200. $34820. O $40480. Multiple Choice Question 55 Which of the following is a true statement about inventory systems? O Perpetual inventory systems require more detailed inventory records. O A periodic system requires cost of goods sold be determined after each sale. O Periodic inventory systems require more detailed inventory records. O A perpetual system determines cost of goods sold only at the end of the accounting period. Multiple Choice Question 62 If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the O carrier will bear the freight cost. o inventory account will be increased. inventory account will not be affected. O seller will bear the freight cost. Multiple Choice Question 65 Sheffield Company purchased merchandise inventory with an invoice price of $10200 and credit terms of 5/10, n/30. What is the net cost of the goods if Sheffield Company pays within the discount period? O $9690 $9180 $10200 $8160 Multiple Choice Question 55 A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $70; Second purchase $74; Third purchase $66. If the company sold two units for a total of $208 and used FIFO costing, the gross profit for the period would be $68. 0 $64. 0 $74. 0 O $72. 0 Multiple Choice Question 58 A company just starting business made the following four inventory purchases in June: Number of Units Purchased 120 units Date June 1 June 10 June 15 June 28 240 units 240 units 150 units Total Cost $ 370 600 600 490 $2060 A physical count of merchandise inventory on June 30 reveals that there are 350 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is $1070. $1819. $870. $990. Multiple Choice Question 59 A company just starting business made the following four inventory purchases in June: Total cost $ 380 Date June 1 June 10 June 15 June 28 Number of units purchased 160 units 230 units 230 units 130 units 570 660 400 $2010 A physical count of merchandise inventory on June 30 reveals that there are 300 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is $1408. $727. $804. $802