NEED HELP WITH THESE ACCOUNTING QUESTIONS. Paying $8. QUESTION 1

1. The Thomas Company has an accounts receivable account in its general ledger, and it also maintains a subsidiary ledger that contains an individual account for each of its customers who buys merchandise on credit. Which of the following statements about the general ledger account isnottrue?

   A The general ledger account is also called a contra account.

   B The balance of the general ledger account should agree with the total of all of the accounts in the subsidiary ledger.

   C The general ledger account is called a real or permanent account.

   D The general ledger account is properly referred to as a control account.

QUESTION 2

1. When cash is debited for rents that are collected but are not yet earned, the amount credited should be

   A recorded as revenue when collected

   B presented as a liability until earned

   C recorded as an asset until earned

   D presented as a separate item in stockholders' equity

QUESTION 3

1. Which of the following is a permanent account?

   A Dividends Distributed

   B Allowance for Doubtful Accounts

   C Interest Expense

   D Sales

QUESTION 4

1. Prior to preparing the organization's financial statements, the accountant prepares

   A a balance sheet

   B a trial balance

   C an adjusted trial balance

   D a closed trial balance

QUESTION 5

1. On May 1, 2010, Arch Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Arch makes all interest payments on schedule. The correct December 31, 2010, adjusting entry would be

   A Interest Expense 25 Interest Payable 25

   B Interest Payable 100 Cash 100

   C Interest Expense 25 Cash 25

   D Interest Expense 100 Interest Payable 100

QUESTION 6

1. An adjusting entry normally affects

   A balance sheet accounts only

   B income statement accounts only

   C an income statement account and a balance sheet account

   D balance sheet accounts or income statement accounts only

QUESTION 7

1. The Mercer Company uses the cash basis of accounting. Mercer Company made $500,000 in payments to its suppliers during the year. Mercer's beginning inventory was $20,000, and its ending inventory was $35,000. In addition, Mercer had a beginning accounts payable of $50,000 and an ending accounts payable of $70,000. What is Mercer's cost of goods sold under the accrual basis of accounting?

   A $465,000

   B $495,000

   C $505,000

   D $535,000

QUESTION 8

1. Which of the following is an accrued expense?

   A depreciation

   B employees' salaries

   C interest revenue

   D rental expense paid three months in advance

QUESTION 9

1. The accountant failed to make the adjusting entry to record the depreciation for the year. This error would cause

   A an overstatement of assets

   B an overstatement of expenses

   C an understatement of liabilities

   D an understatement of owners' equity

QUESTION 10

1. Adjusting entries are made

   A to match the consumption of prepaid assets against current revenues

   B to record accrued expenses

   C to record estimated items, such as depreciation

   D for all of these reasons