Please answer the multiple choice with brief explanation

Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM 221 Mid-Term Exam: Multiple-Choice Started: Oct 6 at 12:46am Quiz Instructions Question 1 2 pts Liabilities are reported on the retained earnings statement balance sheet statement of cash flows income statement Question 2 2 pts The year-end balance of the retained earnings account appears in only the retained earnings statement both the retained earnings statement and the income statement both the retained earnings statement and the statement of cash flows both the retained earnings statement and the balance sheet Question 3 2 pts The assets section of the balance sheet normally presents assets in order of largest to smallest dollar amounts alphabetical order in the order that they will be converted into cash or used in operations any order Question 4 2 pts Revenue should be recognized when the customer places an order the service is performed https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 1 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM the service is performed the customer charges an order cash is received Question 5 2 pts A chart of accounts is the same as a balance sheet usually a listing of accounts in alphabetical order usually a listing of accounts in financial statement order used in place of a ledger Question 6 2 pts Retained earnings will be reduced by all of the following except all of these expenses revenues dividends Question 7 2 pts Which of the following types of accounts have a normal credit balance? assets and liabilities liabilities and expenses revenues and liabilities capital stock and dividends Question 8 2 pts A debit signifies a decrease in revenues assets https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 2 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM assets dividends expenses Question 9 2 pts The classification and normal balance of the dividends account is a liability with a credit balance a stockholders' equity item with a debit balance an expense with a debit balance an expense with a credit balance Question 10 2 pts The classification and normal balance of the supplies expense account is a(n) asset with a debit balance asset with a credit balance liability with a credit balance expense with a debit balance Question 11 2 pts In which of the following types of accounts are increases recorded by debits? assets, liabilities assets, expenses dividends, liabilities expenses, liabilities Question 12 2 pts Which of the following entries records the acquisition of office supplies on account? Office Supplies, debit; Cash, credit Accounts Receivable, debit; Office Supplies, credit https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 3 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM Cash, debit; Office Supplies, credit Office Supplies, debit; Accounts Payable, credit Question 13 2 pts Which of the following will increase retained earnings? Expenses > revenues. Cash is received from customers on account. Dividends are declared and paid. Revenues > expenses. Question 14 2 pts The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is debit Rent Expense, $18,000; credit Prepaid Rent, $6,000 debit Rent Expense, $6,000; credit Prepaid Rent, $6,000 debit Prepaid Rent, $6,000; credit Rent Expense, $6,000 debit Prepaid Rent, $18,000; credit Rent Expense, $6,000 Question 15 2 pts The adjusting entry to record the depreciation of equipment for the fiscal period is debit Depreciation Expense; credit Accumulated Depreciation debit Accumulated Depreciation; credit Depreciation Expense debit Depreciation Expense; credit Equipment debit Equipment; credit Depreciation Expense Question 16 2 pts The type of account and normal balance of Accumulated Depreciation is asset, credit contra asset, credit https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 4 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM asset, debit contra asset, debit Question 17 2 pts The type of account and normal balance of Unearned Rent is expense, debit liability, credit revenue, credit liability, debit Question 18 2 pts Which of the following accounts ordinarily appears in the post-closing trial balance? Dividends Fees Earned Supplies Expense Unearned Rent Question 19 2 pts Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount allowable? $130 $150 $170 $250 Question 20 2 pts The entry to record the return of merchandise from a customer would include a credit to Sales debit to Sales Returns and Allowances https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 5 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM debit to Sales credit to Sales returns and Allowances Question 21 2 pts When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry debit Cash; credit Merchandise Inventory debit Sales Returns and Allowances; credit Cash debit Merchandise Inventory; credit Cash debit Cash; credit Sales Returns and Allowances Question 22 2 pts If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as FOB destination FOB n/30 FOB shipping point FOB seller Question 23 2 pts Which of the following is closed to Retained Earnings? Accounts Payable Rent Revenue Income Summary Rent Expense Question 24 2 pts Which of the following is closed to Income Summary? Rent Expense Dividends https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 6 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM Accounts Receivable Income Summary Question 25 2 pts When closing the Professional Fees (revenue) account, you would: debit Professional Fees; credit Income Summary debit Professional Fees; credit Retained Earnings debit Retained Earnings; credit Professional Fees debit Income Summary; credit Professional Fees Question 26 2 pts When there is net income and you are closing Income Summary, the entry should be: debit Professional Fees, credit Income Summary debit Income Summary; credit Retained Earnings debit Income Summary; credit Professional Fees debit Retained Earnings; credit Income Summary Question 27 2 pts When prices are rising, the inventory method that will yield the highest net income is: first-in, first-out (FIFO) retail method last-in, first-out (LIFO) average cost Question 28 2 pts The inventory method that assigns the oldest costs to cost of goods sold is first-in, first-out (FIFO) average cost https:/msu.instructure.com/courses/885327/quizzes/1010453/take Page 7 of 8 Quiz: 221 Mid-Term Exam: Multiple-Choice 10/6/14, 12:04 AM retail method last-in, first-out (LIFO) Question 29 2 pts Ending inventory is made up of the oldest purchases when a company uses first-in, first-out (FIFO) retail method last-in, first-out (LIFO) average cost Question 30 2 pts Which of the following companies would most likely use the average cost method: hardware store car dealership art gallery airplane manufacturer Quiz saved at 12:03am https:/msu.instructure.com/courses/885327/quizzes/1010453/take Submit Quiz Page 8 of 8 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM 221 Mid-Term Exam: Multiple-Choice Due Oct 12 at 11:45pm Points 60 Questions 30 Attempt History Available Oct 5 at 11:46pm - Oct 12 at 11:45pm 7 days Attempt LATEST Time Score Attempt 1 3687 minutes Time Limit None 40 out of 60 Correct answers are hidden. Score for this quiz: 40 out of 60 Submitted Oct 8 at 2:13pm This attempt took 3687 minutes. Question 1 2 / 2 pts Liabilities are reported on the retained earnings statement balance sheet statement of cash flows income statement Question 2 2 / 2 pts The year-end balance of the retained earnings account appears in only the retained earnings statement both the retained earnings statement and the income statement both the retained earnings statement and the statement of cash flows both the retained earnings statement and the balance sheet Question 3 2 / 2 pts The assets section of the balance sheet normally presents assets in order of largest to smallest dollar amounts alphabetical order https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 1 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM in the order that they will be converted into cash or used in operations any order Question 4 2 / 2 pts Revenue should be recognized when the customer places an order the service is performed the customer charges an order cash is received Incorrect Question 5 0 / 2 pts A chart of accounts is the same as a balance sheet usually a listing of accounts in alphabetical order usually a listing of accounts in financial statement order used in place of a ledger Incorrect Question 6 0 / 2 pts Retained earnings will be reduced by all of the following except all of these expenses revenues dividends Question 7 2 / 2 pts Which of the following types of accounts have a normal credit balance? https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 2 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM assets and liabilities liabilities and expenses revenues and liabilities capital stock and dividends Question 8 2 / 2 pts A debit signifies a decrease in revenues assets dividends expenses Question 9 2 / 2 pts The classification and normal balance of the dividends account is a liability with a credit balance a stockholders' equity item with a debit balance an expense with a debit balance an expense with a credit balance Question 10 2 / 2 pts The classification and normal balance of the supplies expense account is a(n) asset with a debit balance asset with a credit balance liability with a credit balance expense with a debit balance https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 3 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING Question 11 10/8/14, 1:32 PM 2 / 2 pts In which of the following types of accounts are increases recorded by debits? assets, liabilities assets, expenses dividends, liabilities expenses, liabilities Question 12 2 / 2 pts Which of the following entries records the acquisition of office supplies on account? Office Supplies, debit; Cash, credit Accounts Receivable, debit; Office Supplies, credit Cash, debit; Office Supplies, credit Office Supplies, debit; Accounts Payable, credit Question 13 2 / 2 pts Which of the following will increase retained earnings? Expenses > revenues. Cash is received from customers on account. Dividends are declared and paid. Revenues > expenses. Incorrect Question 14 0 / 2 pts The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is debit Rent Expense, $18,000; credit Prepaid Rent, $6,000 debit Rent Expense, $6,000; credit Prepaid Rent, $6,000 https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 4 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM debit Prepaid Rent, $6,000; credit Rent Expense, $6,000 debit Prepaid Rent, $18,000; credit Rent Expense, $6,000 Question 15 2 / 2 pts The adjusting entry to record the depreciation of equipment for the fiscal period is debit Depreciation Expense; credit Accumulated Depreciation debit Accumulated Depreciation; credit Depreciation Expense debit Depreciation Expense; credit Equipment debit Equipment; credit Depreciation Expense Incorrect Question 16 0 / 2 pts The type of account and normal balance of Accumulated Depreciation is asset, credit contra asset, credit asset, debit contra asset, debit Incorrect Question 17 0 / 2 pts The type of account and normal balance of Unearned Rent is expense, debit liability, credit revenue, credit liability, debit Incorrect Question 18 0 / 2 pts Which of the following accounts ordinarily appears in the post-closing trial balance? https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 5 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM Dividends Fees Earned Supplies Expense Unearned Rent Incorrect Question 19 0 / 2 pts Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount allowable? $130 $150 $170 $250 Question 20 2 / 2 pts The entry to record the return of merchandise from a customer would include a credit to Sales debit to Sales Returns and Allowances debit to Sales credit to Sales returns and Allowances Incorrect Question 21 0 / 2 pts When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry debit Cash; credit Merchandise Inventory debit Sales Returns and Allowances; credit Cash debit Merchandise Inventory; credit Cash debit Cash; credit Sales Returns and Allowances https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 6 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING Question 22 10/8/14, 1:32 PM 2 / 2 pts If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as FOB destination FOB n/30 FOB shipping point FOB seller Incorrect Question 23 0 / 2 pts Which of the following is closed to Retained Earnings? Accounts Payable Rent Revenue Income Summary Rent Expense Question 24 2 / 2 pts Which of the following is closed to Income Summary? Rent Expense Dividends Accounts Receivable Income Summary Question 25 2 / 2 pts When closing the Professional Fees (revenue) account, you would: debit Professional Fees; credit Income Summary debit Professional Fees; credit Retained Earnings debit Retained Earnings; credit Professional Fees https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 7 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM debit Income Summary; credit Professional Fees Incorrect Question 26 0 / 2 pts When there is net income and you are closing Income Summary, the entry should be: debit Professional Fees, credit Income Summary debit Income Summary; credit Retained Earnings debit Income Summary; credit Professional Fees debit Retained Earnings; credit Income Summary Question 27 2 / 2 pts When prices are rising, the inventory method that will yield the highest net income is: first-in, first-out (FIFO) retail method last-in, first-out (LIFO) average cost Question 28 2 / 2 pts The inventory method that assigns the oldest costs to cost of goods sold is first-in, first-out (FIFO) average cost retail method last-in, first-out (LIFO) Question 29 2 / 2 pts Ending inventory is made up of the oldest purchases when a company uses https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 8 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM first-in, first-out (FIFO) retail method last-in, first-out (LIFO) average cost Question 30 2 / 2 pts Which of the following companies would most likely use the average cost method: hardware store car dealership art gallery airplane manufacturer Quiz Score: 40 out of 60 https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 9 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM 221 Mid-Term Exam: Multiple-Choice Due Oct 12 at 11:45pm Points 60 Questions 30 Attempt History Available Oct 5 at 11:46pm - Oct 12 at 11:45pm 7 days Attempt LATEST Time Score Attempt 1 3687 minutes Time Limit None 40 out of 60 Correct answers are hidden. Score for this quiz: 40 out of 60 Submitted Oct 8 at 2:13pm This attempt took 3687 minutes. Question 1 2 / 2 pts Liabilities are reported on the retained earnings statement balance sheet statement of cash flows income statement Question 2 2 / 2 pts The year-end balance of the retained earnings account appears in only the retained earnings statement both the retained earnings statement and the income statement both the retained earnings statement and the statement of cash flows both the retained earnings statement and the balance sheet Question 3 2 / 2 pts The assets section of the balance sheet normally presents assets in order of largest to smallest dollar amounts alphabetical order https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 1 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM in the order that they will be converted into cash or used in operations any order Question 4 2 / 2 pts Revenue should be recognized when the customer places an order the service is performed the customer charges an order cash is received Incorrect Question 5 0 / 2 pts A chart of accounts is the same as a balance sheet usually a listing of accounts in alphabetical order usually a listing of accounts in financial statement order used in place of a ledger Incorrect Question 6 0 / 2 pts Retained earnings will be reduced by all of the following except all of these expenses revenues dividends Question 7 2 / 2 pts Which of the following types of accounts have a normal credit balance? https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 2 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM assets and liabilities liabilities and expenses revenues and liabilities capital stock and dividends Question 8 2 / 2 pts A debit signifies a decrease in revenues assets dividends expenses Question 9 2 / 2 pts The classification and normal balance of the dividends account is a liability with a credit balance a stockholders' equity item with a debit balance an expense with a debit balance an expense with a credit balance Question 10 2 / 2 pts The classification and normal balance of the supplies expense account is a(n) asset with a debit balance asset with a credit balance liability with a credit balance expense with a debit balance https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 3 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING Question 11 10/8/14, 1:32 PM 2 / 2 pts In which of the following types of accounts are increases recorded by debits? assets, liabilities assets, expenses dividends, liabilities expenses, liabilities Question 12 2 / 2 pts Which of the following entries records the acquisition of office supplies on account? Office Supplies, debit; Cash, credit Accounts Receivable, debit; Office Supplies, credit Cash, debit; Office Supplies, credit Office Supplies, debit; Accounts Payable, credit Question 13 2 / 2 pts Which of the following will increase retained earnings? Expenses > revenues. Cash is received from customers on account. Dividends are declared and paid. Revenues > expenses. Incorrect Question 14 0 / 2 pts The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is debit Rent Expense, $18,000; credit Prepaid Rent, $6,000 debit Rent Expense, $6,000; credit Prepaid Rent, $6,000 https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 4 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM debit Prepaid Rent, $6,000; credit Rent Expense, $6,000 debit Prepaid Rent, $18,000; credit Rent Expense, $6,000 Question 15 2 / 2 pts The adjusting entry to record the depreciation of equipment for the fiscal period is debit Depreciation Expense; credit Accumulated Depreciation debit Accumulated Depreciation; credit Depreciation Expense debit Depreciation Expense; credit Equipment debit Equipment; credit Depreciation Expense Incorrect Question 16 0 / 2 pts The type of account and normal balance of Accumulated Depreciation is asset, credit contra asset, credit asset, debit contra asset, debit Incorrect Question 17 0 / 2 pts The type of account and normal balance of Unearned Rent is expense, debit liability, credit revenue, credit liability, debit Incorrect Question 18 0 / 2 pts Which of the following accounts ordinarily appears in the post-closing trial balance? https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 5 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM Dividends Fees Earned Supplies Expense Unearned Rent Incorrect Question 19 0 / 2 pts Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount allowable? $130 $150 $170 $250 Question 20 2 / 2 pts The entry to record the return of merchandise from a customer would include a credit to Sales debit to Sales Returns and Allowances debit to Sales credit to Sales returns and Allowances Incorrect Question 21 0 / 2 pts When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry debit Cash; credit Merchandise Inventory debit Sales Returns and Allowances; credit Cash debit Merchandise Inventory; credit Cash debit Cash; credit Sales Returns and Allowances https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 6 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING Question 22 10/8/14, 1:32 PM 2 / 2 pts If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as FOB destination FOB n/30 FOB shipping point FOB seller Incorrect Question 23 0 / 2 pts Which of the following is closed to Retained Earnings? Accounts Payable Rent Revenue Income Summary Rent Expense Question 24 2 / 2 pts Which of the following is closed to Income Summary? Rent Expense Dividends Accounts Receivable Income Summary Question 25 2 / 2 pts When closing the Professional Fees (revenue) account, you would: debit Professional Fees; credit Income Summary debit Professional Fees; credit Retained Earnings debit Retained Earnings; credit Professional Fees https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 7 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM debit Income Summary; credit Professional Fees Incorrect Question 26 0 / 2 pts When there is net income and you are closing Income Summary, the entry should be: debit Professional Fees, credit Income Summary debit Income Summary; credit Retained Earnings debit Income Summary; credit Professional Fees debit Retained Earnings; credit Income Summary Question 27 2 / 2 pts When prices are rising, the inventory method that will yield the highest net income is: first-in, first-out (FIFO) retail method last-in, first-out (LIFO) average cost Question 28 2 / 2 pts The inventory method that assigns the oldest costs to cost of goods sold is first-in, first-out (FIFO) average cost retail method last-in, first-out (LIFO) Question 29 2 / 2 pts Ending inventory is made up of the oldest purchases when a company uses https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 8 of 9 221 Mid-Term Exam: Multiple-Choice: 2014 Fall - ACCT-221-A20-FINANCIAL ACCOUNTING 10/8/14, 1:32 PM first-in, first-out (FIFO) retail method last-in, first-out (LIFO) average cost Question 30 2 / 2 pts Which of the following companies would most likely use the average cost method: hardware store car dealership art gallery airplane manufacturer Quiz Score: 40 out of 60 https:/msu.instructure.com/courses/885327/quizzes/1010453 Page 9 of 9