There are 25 multiple choice questions here and most of them are true or false. I need the answers within 1 hour. Please only accept this question if you can answer it within 1hour.

If a merchandiser uses the periodic inventory system it is necessary to conduct a physical count of inventory to determine the quantity of inventory on hand

True

False

Question

2 of25

The percentage of assets that are financed with liabilities can be calculated using the

accounting equation.

debt ratio.

journal.

ledger.

Question

3 of25

Which of the following amounts appears on both the statement of owner's equity and the balance sheet?

Ending owner's equity

Total assets

Total revenues

Net income

Question

4 of25

It is mandatory for both the employer and employee to pay

FICA.

SUTA.

employee income tax.

federal unemployment tax.

Question

5 of25

If a long-term liability is paid in installments, the maker will report the current portion of the note payable as a current liability

True

False

Question

6 of25

Internal control is an organizational plan that ensures that financial statements are prepared and submitted in time

True

False

Question

7 of25

Revenue collected but not yet earned is recorded as

Unearned Revenue.

Accrued Revenue.

Service Revenue.

Uncollected Revenue.

Question

8 of25

Which of the following is one of the purposes of internal control?

To encourage employees to follow company policy

To ensure timely payment of Accounts Payables

To ensure timely collection of Accounts Receivable

To guarantee that a business makes a profit

Question

9 of25

By looking at a statement of owner's equity, the effect of withdrawals on the ending balance in owner's equity can be evaluated

True

False

Question

10 of25

A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record such returns would include

a debit to Purchase Returns and Allowances for $2,000 and a credit to Accounts Payable for $2,000.

a debit to Accounts Payable for $2,000 and a $2,000 credit to Purchase Returns and Allowances.

a debit to Purchases for $2,000 and a credit to Accounts Payable for $2,000.

a debit to Accounts Payable for $2,000 and a credit to Purchases for $2,000.

Question

11 of25

A company's accountant capitalized a payment that should be recorded as a revenue expenditure. How will this error affect the financial statements of the company?

Net income will be overstated.

Revenues will be understated.

Assets will be understated.

Liabilities will be understated.

Question

12 of25

Grace Company has a debt ratio of 25%; this means that 75% of the assets are financed by creditors of the corporation

True

False

Question

13 of25

Fred owns a delivery truck. Which of the following costs, associated with the truck, will be capitalized and depreciated?

Modification for new use

Oil change

Replacement of tires

Normal repair of engine

Question

14 of25

An accounting information system is said to have good flexibility if it

works smoothly with the business's employees and organizational structure.

safeguards a business's assets and reduces the likelihood of fraud and errors.

provides information that will improve decision making and reduce uncertainty.

can accommodate changes in the business over time.

Question

15 of25

For a company to safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system

should be manual.

must be flexible to accommodate changes in a business over time.

should work smoothly with the business's employees.

must provide adequate controls of a business's assets and data.

Question

16 of25

Which of the following is a characteristic of a plant asset, such as a building?

It is used in the operation of a business.

It is available for sale to customers in the ordinary course of business.

It has a short useful life.

It will have a negligible value at the end of its useful life.

Question

17 of25

Under the direct write-off method, the entry to write off an uncollectible account will include

a debit to Bad Debts Expense account.

a debit to the customer's Account Receivable.

a credit to the Allowance for Bad Debts.

No entry is made to write off uncollectible accounts.

Question

18 of25

Repair work that generates a capital expenditure because it extends the plant asset's useful life past the normal expected life is known as an extraordinary repair

True

False

Question

19 of25

Which of the following is the correct formula to calculate average merchandise inventory?

Average merchandise inventory = (Beginning merchandise inventory - Ending merchandise inventory) 2

Average merchandise inventory = (Beginning merchandise inventory Ending merchandise inventory) 2

Average merchandise inventory = (Beginning merchandise inventory Ending merchandise inventory) 2

Average merchandise inventory = (Beginning merchandise inventory + Ending merchandise inventory) 2

Question

20 of25

Which of the following line items would appear on the income statement of a company that uses the periodic inventory system but not on that of a company that uses the perpetual inventory system?

Net Sales Revenue

Cost of Goods Sold

Cost of Goods Available for Sale

Operating expenses

Question

21 of25

The receivables of an organization can be categorized into accounts receivable, notes receivable, and other receivables

True

False

Question

22 of25

The debt ratio shows the proportion of assets financed with debt

True

False

Question

23 of25

The steps of the accounting cycle are followed throughout the accounting period

True

False

Question

24 of25

Under the last-in, first-out method, the amount of cost of goods sold calculated using the perpetual inventory system will differ from the amount calculated using the periodic inventory system

True

False

Question

25 of25

Amounts owed for products or services due within one year are current liabilities

True

False