Question 17:

A cash dividend of $500 was declared and paid to stockholders. The correct journal entry to record the declaration is _______________.

Question 17 options:

debit Capital Stock 500 and credit Cash 500

debit Cash 500 and credit Dividends 500

debit Dividends 500 and credit Cash 500

debit Cash 500 and credit Capital Stock 500

Question 18(1 point)

If $3,000 has been earned by a company's workers since the last payday in an accounting period, the necessary adjusting entry would be _______________.

Question 18 options:

debit an expense and credit a liability

debit an expense and credit an asset

debit a liability and credit an asset

debit a liability and credit an expense

Question 19(1 point)

The accrual basis of accounting _______________.

Question 19 options:

recognizes revenues only when cash is received

is used by almost all companies

recognizes expenses only when cash is paid out

recognizes revenues when sales are made or services are performed, and recognizes expenses only when cash is paid out

Question 20(1 point)

The need for adjusting entries is based on _______________.

Question 20 options:

the matching principle

source documents

the cash basis of accounting

activity that has already been recorded in the proper accounts

Question 21(1 point)

Which of the following statements is false regarding the closing process?

Question 21 options:

The Dividends account is closed to Income Summary.

The closing of expense accounts results in a debit to Income Summary.

The closing of revenues results in a credit to Income Summary.

The Income Summary account is closed to the Retained Earnings account.

Question 22(1 point)

Which of the following statements is true regarding the classified balance sheet?

Question 22 options:

Current assets include cash, accounts receivable, and equipment.

Plant, property, and equipment is one category of long-term assets.

Current liabilities include accounts payable, salaries payable, and notes receivable.

Stockholders' equity is subdivided into current and long-term categories.

Question 23(1 point)

The underlying assumptions of accounting include all the following except _______________.

Question 23 options:

business entity

going concern

matching

money measurement and periodicity

Question 24(1 point)

Malloy Company began the accounting period with $60,000 of merchandise, and the net cost of purchases was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period. The cost of goods sold of Malloy Company for the period is _______________.

Question 24 options:

$300,000

$228,000

$252,000

$168,000

None of the above

Question 25(1 point)

A classified income statement consists of all of the following major sections except _______________.

Question 25 options:

Operating revenues

Cost of goods sold

Operating expenses

Non-operating revenues and expenses

Current assets

Question 26(1 point)

A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be _______________.

Question 26 options:

$240

$200

$1,200

$1,000

$3,600

Question 27(1 point)

Malloy Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of ending inventory using weighted-average is _______________.

Question 27 options:

$114,750

$157,600

$122,400

$109,650

None of the above

Question 28(1 point)

Malloy Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of goods sold using weighted-average is _______________.

Question 28 options:

$147,200

$160,350

$155,250

$114,000

None of the above

Question 29(1 point)

During a period of rising prices, which inventory method might be expected to give the highest net income?

Question 29 options:

Weighted-average

FIFO

LIFO

Specific identification

Cannot determine

Question 30(1 point)

The following information is related to the bank reconciliation of the Acme Company:

Balance per bank statement	$1,951.20
Balance per ledger	1,869.60
Deposits in transit	271.20
Outstanding checks	427.80
NSF check	61.20
Service charges	13.80

The adjusted/correct cash balance is _______________.

Question 30 options:

$1,794.60

$1,719.60

$1,638.00

$1,713.00

$1,876.20

Question 31(1 point)

In a bank reconciliation, deposits in transit should be _______________.

Question 31 options:

deducted from the balance per books

deducted from the balance per bank statement

added to the balance per ledger

added to the balance per bank statement

disregarded in the bank reconciliation