Under current GAAP, inflation is ignored in accounting due to the:

Select one:

a. Economic entity assumption

b. Going concern assumption

c. Monetary unit assumption

d. Periodicity assumption

e. Historical cost assumption

Question 2

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What organization developed "the codification" of accounting pronouncements?

Select one:

a. GAAP

b. SEC

c. FASB

d. PCAOB

Question 3

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During the current year, revenues of $1,210 were recorded, of which $643 was on accounts receivable and $567 was received in cash. Also, during the year, expenses of $621 were recorded of which $162 was paid in cash and the rest was on accounts payable. What increase or (decrease) did these transactions have on Total Assets, Liabilities, and Equity, respectively?

Select one:

a. $1,210, $459, $183

b. $589, $621, $21

c. $751, ($459), $108

d. $1,048, $459, $589

e. $1,048, ($459), $108

Question 4

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PDQ Printing reports these account balances at December 31, 2012: In a trial balance prepared at December 31, 2012, the total of the debit column is:

Select one:

a. $1,360

b. $680

c. $350

d. $600

e. $440

Silvaggi Corporation received cash of $3,000 on June 1, 2013, for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 2013, adjusting entry is:

Select one:

a. Debit Rent Revenue and credit Unearned Rent, $ 1,250

b. Debit Rent Revenue and credit Unearned Rent, $ 1,750

c. Debit Unearned Rent and credit Rent Revenue, $ 1,250

d. Debit Cash and credit Unearned Rent, $ 1,750

e. Debit Unearned Rent and credit Rent Revenue, $ 1,750

Question 6

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The accounts to be debited in the closing entries at year-end include:

Select one:

a. Accumulated Depreciation, Purchase Discounts, Freight-In

b. Freight-Out, Purchase Returns, Purchases

c. Purchase Returns, Purchase Discounts, Interest Revenue

d. Unearned Revenue, Sales Revenue, Interest Revenue

e. Depreciation Expense, Purchases, Sales

Question 7

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Blue Diamond Company began operations on January 1, 2012, with contributed capital of $40,000. What was Retained Earnings at the end of each of 2012 and 2013, respectively?

Select one:

a. $90,900, $314,500

b. $121,500, $234,900

c. $90,900, $325,800

d. $121,500, $325,800

e. $90,900, $234,900

Question 8

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On 12/31/12, the Trickland Company accrues three day's wages of $600 ($200 per day). Proper 12/31 closing entries are made. On 1/1/13, Trickland makes the reversing entry. Trickland pays the weekly payroll of $1,000 on 1/2/13. The 1/2/13 journal entry will include a:

Select one:

a. Debit to Wage Expense for $1,000

b. Debit to Wage Expense for $400

c. Debit to Wages Payable for $600

d. Debit to Wages Payable for $400

e. Debit to Wages Expense for $600

Question 9

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At December 31, the following amounts were reported before adjusting entries (Column 1) and after adjusting entries (Column II): Initial journal entries to record wages paid are on the cash basis. What combined effect did these adjusting entries have on net income for the year ended December 31?

Select one:

a. $22 decrease

b. $8 decrease

c. $8 increase

d. $20 decrease

e. $22 increase

Question 10

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At January 1, 2001, the firm reported $487,300 in liabilities. For the year ended December 31, 2001, the firm reported revenues of $538,400, expenses of $508,200, and dividends of $25,300. In addition, during the year, the firm issued $44,600 in common stock. Assets at December 31, 2001 were $1,195,700 and liabilities increased during the year by $13,200. What were the assets at January 1, 2001?

Select one:

a. $1,133,000

b. $1,146,200

c. $1,159,400

d. $1,182,500

e. $1,258,400

Question 11

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The following information is available from Deli Company's accounting records: Deli's Cost of Goods Available for Sale is:

Select one:

a. $465,000

b. $680,000

c. $640,000

d. $690,000

e. $720,000

Question 12

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The following information is available from Washington Company's accounting records: Washington's gross profit is:

Select one:

a. $465,000

b. $680,000

c. $425,000

d. $575,000

e. $535,000

Question 13

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The only revenue for the Ford Company is Sales. A net loss will result if:

Select one:

a. Gross Margin exceeds Operating Expenses

b. Cost of Goods Sold exceeds Purchases

c. Operating Expenses exceeds Net Sales

d. Gross Margin exceeds Cost of Goods Sold

e. Operating Expenses exceeds Cost of Goods Sold

Question 14

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A bookkeeper erroneously recorded the accrual of wages payable using this journal entry: The effect of this error on Assets and Liabilities (respectively) will be:

Select one:

a. Overstated, Overstated

b. Overstated, No Error

c. No Error, No Error

d. Understated, Overstated

e. Understated, Understated

Question 15

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The Walton Company collected an accounts receivable and recorded this journal entry. Determine the effect of the error on Net Income and Liabilities, respectively:

Select one:

a. No Error, Overstated

b. Understated, No Error

c. Understated, Understated

d. Overstated, No Error

e. No Error, No Error

Question 16

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The Pieper Corp. recorded the accrual of a revenue by debiting Accounts Receivable and crediting Unearned Revenue. What is the effect of the error on Assets and Net Income, respectively?

Select one:

a. No Error, No Error

b. Overstated, Overstated

c. No Error, Overstated

d. Understated, No Error

e. No Error, Understated

Question 17

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The Taylor Company reported 2014 Net Income before taxes and extraordinary items of $595. Items affecting the income statement included: The total income tax expense for 2014 is:

Select one:

a. $137

b. $125

c. $113

d. $101.20

e. $145

Question 18

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Given the following:

The EPS disclosures of the Income Statement include three EPS amounts based on:

The amounts to be disclosed respectively are:

Select one:

a. $2,40, ($.60), and $1.80

b. $1.90, ($.60), and $1.30

c. $4.00, ($1.00), and $3.00

d. $1.90, ($.10), and $1.80

e. $1.60, ($.40) and $1.20

Question 19

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THE DATA FOR THIS QUESTION ARE THE SAME AS THE DATA FOR THE PREVIOUS QUESTION.

Given the following: The EPS disclosures of the Income Statement include three EPS amounts based on: The total income tax expense for the above problem is:

Select one:

a. $1,600

b. $2,000

c. $1,200

d. $600

e. $2,200

Question 20

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Given the following information: Gross Profit is:

Select one:

a. Overstated $2

b. Understated $2

c. Overstated $7

d. Understated $7

e. Overstated $3

Question 21

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The Leto Company had current assets of $500 and current liabilities of $400 prior to the following transactions: 1) Declaration of a cash dividend, $100 2) Payment of an account payable, $80 The combined effect of these two transactions will cause what effect on Working Capital and the Working Capital Ratio, respectively?

Select one:

a. No Effect, Decrease

b. No Effect, Increase

c. No Effect, No Effect

d. Decrease, No Effect

e. Decrease, Decrease

Question 22

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Jefferson Services Company records the collection of $325 cash for previously accrued revenue and then makes an accrual of $500 for another revenue. The impact of these two entries on total Net Income and Working Capital (respectively) is an increase of:

Select one:

a. $325, $825

b. $825, $325

c. $325, $500

d. $500, $825

e. $500, $500

Question 23

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The Jenny Company fails to record these two journal entries on 12/31/18: 1. Issuance of Common Stock for Cash: $40 2. Expiration of Prepaid Insurance: $10 Working capital will be:

Select one:

a. Correct

b. $10 overstated

c. $40 understated

d. $30 understated

e. $30 overstated

Question 24

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The combined declaration and payment of cash dividends has what effect on Net Income and Working Capital, respectively?

Select one:

a. No effect, Decreased

b. Decreased, No effect

c. Decreased, Decreased

d. No effect, No effect

e. Decreased, Increased

Question 25

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Which item is included on the income statement?

Select one:

a. Contingent Gain, but not Extraordinary Gains

b. Extraordinary Gains, but not Contingent Gain

c. Both Contingent Gain and Extraordinary Gain

d. Neither Contingent Gain nor Extraordinary Gain

Question 26

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The Hooper River Company makes three adjusting entries at 12/31/18:

Depreciation $75

Accrued Revenue $40

Accrued Expense $100

Indicate the net effect of these three entries on Net Income and Working Capital, respectively:

Select one:

a. Decrease $135, Decrease $135

b. Decrease $135, Increase $40

c. Decrease $60, Decrease $60

d. Decrease $135, Decrease $35

e. Decrease $135, Decrease $60

Question 27

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Following all closing journal entries, the Blake Retained Earnings account balance will be:

Select one:

a. $38,000

b. $54,000

c. $46,000

d. $20,000

e. $18,000

Question 28

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THE DATA FOR THIS QUESTION ARE THE SAME AS THE DATA FOR THE PREVIOUS QUESTION. Following all closing entries, the Blake Trial Balance totals will be:

Select one:

a. $161,000

b. $209,000

c. $153,000

d. $145,000

e. $191,000

Question 29

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At the end of the current year, the owner's equity in Solana Donuts is $188,000. During the year, the assets of the business had increased by $90,000, and the liabilities had decreased by $36,000. Owner's equity at the beginning of the year must have been:

Select one:

a. $62,000

b. $126,000

c. $314,000

d. $242,000

e. $134,000

Question 30

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If a retail store has current liabilities of $100 and a Working Capital ratio of 3.2, what is Working Capital?

Select one:

a. $220

b. $320

c. $31.25

d. $68.75

e. $420

Question 31

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The predecessor of FASB was:

Select one:

a. IRS

b. PCAOB

c. SEC

d. IASB

e. APB

Question 32

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A stock dividend will always decrease

Select one:

a. Retained Earnings

b. Common Stock

c. Net Income

d. Dividends Payable

Question 33

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Which item has a credit balance?

Select one:

a. Accumulated Depreciation

b. Purchases

c. Sales Discount

d. Treasury Stock

Question 34

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Which account is not closed at the end of an accounting period?

Select one:

a. Sales

b. Unearned Revenue

c. Dividends

d. Freight-out

Question 35

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If the adjusting entry to record the earned portion of Rent Received in advance is not recorded:

Select one:

a. Current Liabilities will be Overstated

b. Current Liabilities will be Understated

c. Retained Earnings will be Overstated

d. Net Income will be Overstated

Under current GAAP, inflation is ignored in accounting due to the: Select one: a. Economic entity assumption b. Going concern assumption c. Monetary unit assumption d. Periodicity assumption e. Historical cost assumption Question 2 Not yet answered Points out of 1.00 Flag question Question text What organization developed "the codification" of accounting pronouncements? Select one: a. GAAP b. SEC c. FASB d. PCAOB Question 3 Not yet answered Points out of 1.00 Flag question Question text During the current year, revenues of $1,210 were recorded, of which $643 was on accounts receivable and $567 was received in cash. Also, during the year, expenses of $621 were recorded of which $162 was paid in cash and the rest was on accounts payable. What increase or (decrease) did these transactions have on Total Assets, Liabilities, and Equity, respectively? Select one: a. $1,210, $459, $183 b. $589, $621, $21 c. $751, ($459), $108 d. $1,048, $459, $589 e. $1,048, ($459), $108 Question 4 Not yet answered Points out of 1.00 Flag question Question text PDQ Printing reports these account balances at December 31, 2012: In a trial balance prepared at December 31, 2012, the total of the debit column is: Select one: a. $1,360 b. $680 c. $350 d. $600 e. $440 Silvaggi Corporation received cash of $3,000 on June 1, 2013, for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 2013, adjusting entry is: Select one: a. Debit Rent Revenue and credit Unearned Rent, $ 1,250 b. Debit Rent Revenue and credit Unearned Rent, $ 1,750 c. Debit Unearned Rent and credit Rent Revenue, $ 1,250 d. Debit Cash and credit Unearned Rent, $ 1,750 e. Debit Unearned Rent and credit Rent Revenue, $ 1,750 Question 6 Not yet answered Points out of 1.00 Flag question Question text The accounts to be debited in the closing entries at year-end include: Select one: a. Accumulated Depreciation, Purchase Discounts, Freight-In b. Freight-Out, Purchase Returns, Purchases c. Purchase Returns, Purchase Discounts, Interest Revenue d. Unearned Revenue, Sales Revenue, Interest Revenue e. Depreciation Expense, Purchases, Sales Question 7 Not yet answered Points out of 1.00 Flag question Question text Blue Diamond Company began operations on January 1, 2012, with contributed capital of $40,000. What was Retained Earnings at the end of each of 2012 and 2013, respectively? Select one: a. $90,900, $314,500 b. $121,500, $234,900 c. $90,900, $325,800 d. $121,500, $325,800 e. $90,900, $234,900 Question 8 Not yet answered Points out of 1.00 Flag question Question text On 12/31/12, the Trickland Company accrues three day's wages of $600 ($200 per day). Proper 12/31 closing entries are made. On 1/1/13, Trickland makes the reversing entry. Trickland pays the weekly payroll of $1,000 on 1/2/13. The 1/2/13 journal entry will include a: Select one: a. Debit to Wage Expense for $1,000 b. Debit to Wage Expense for $400 c. Debit to Wages Payable for $600 d. Debit to Wages Payable for $400 e. Debit to Wages Expense for $600 Question 9 Not yet answered Points out of 1.00 Flag question Question text At December 31, the following amounts were reported before adjusting entries (Column 1) and after adjusting entries (Column II): Initial journal entries to record wages paid are on the cash basis. What combined effect did these adjusting entries have on net income for the year ended December 31? Select one: a. $22 decrease b. $8 decrease c. $8 increase d. $20 decrease e. $22 increase Question 10 Not yet answered Points out of 1.00 Flag question Question text At January 1, 2001, the firm reported $487,300 in liabilities. For the year ended December 31, 2001, the firm reported revenues of $538,400, expenses of $508,200, and dividends of $25,300. In addition, during the year, the firm issued $44,600 in common stock. Assets at December 31, 2001 were $1,195,700 and liabilities increased during the year by $13,200. What were the assets at January 1, 2001? Select one: a. $1,133,000 b. $1,146,200 c. $1,159,400 d. $1,182,500 e. $1,258,400 Question 11 Not yet answered Points out of 1.00 Flag question Question text The following information is available from Deli Company's accounting records: Deli's Cost of Goods Available for Sale is: Select one: a. $465,000 b. $680,000 c. $640,000 d. $690,000 e. $720,000 Question 12 Not yet answered Points out of 1.00 Flag question Question text The following information is available from Washington Company's accounting records: Washington's gross profit is: Select one: a. $465,000 b. $680,000 c. $425,000 d. $575,000 e. $535,000 Question 13 Not yet answered Points out of 1.00 Flag question Question text The only revenue for the Ford Company is Sales. A net loss will result if: Select one: a. Gross Margin exceeds Operating Expenses b. Cost of Goods Sold exceeds Purchases c. Operating Expenses exceeds Net Sales d. Gross Margin exceeds Cost of Goods Sold e. Operating Expenses exceeds Cost of Goods Sold Question 14 Not yet answered Points out of 1.00 Flag question Question text A bookkeeper erroneously recorded the accrual of wages payable using this journal entry: The effect of this error on Assets and Liabilities (respectively) will be: Select one: a. Overstated, Overstated b. Overstated, No Error c. No Error, No Error d. Understated, Overstated e. Understated, Understated Question 15 Not yet answered Points out of 1.00 Flag question Question text The Walton Company collected an accounts receivable and recorded this journal entry. Determine the effect of the error on Net Income and Liabilities, respectively: Select one: a. No Error, Overstated b. Understated, No Error c. Understated, Understated d. Overstated, No Error e. No Error, No Error Question 16 Not yet answered Points out of 1.00 Flag question Question text The Pieper Corp. recorded the accrual of a revenue by debiting Accounts Receivable and crediting Unearned Revenue. What is the effect of the error on Assets and Net Income, respectively? Select one: a. No Error, No Error b. Overstated, Overstated c. No Error, Overstated d. Understated, No Error e. No Error, Understated Question 17 Not yet answered Points out of 1.00 Flag question Question text The Taylor Company reported 2014 Net Income before taxes and extraordinary items of $595. Items affecting the income statement included: The total income tax expense for 2014 is: Select one: a. $137 b. $125 c. $113 d. $101.20 e. $145 Question 18 Not yet answered Points out of 1.00 Flag question Question text Given the following: The EPS disclosures of the Income Statement include three EPS amounts based on: The amounts to be disclosed respectively are: Select one: a. $2,40, ($.60), and $1.80 b. $1.90, ($.60), and $1.30 c. $4.00, ($1.00), and $3.00 d. $1.90, ($.10), and $1.80 e. $1.60, ($.40) and $1.20 Question 19 Not yet answered Points out of 1.00 Flag question Question text THE DATA FOR THIS QUESTION ARE THE SAME AS THE DATA FOR THE PREVIOUS QUESTION. Given the following: The EPS disclosures of the Income Statement include three EPS amounts based on: The total income tax expense for the above problem is: Select one: a. $1,600 b. $2,000 c. $1,200 d. $600 e. $2,200 Question 20 Not yet answered Points out of 1.00 Flag question Question text Given the following information: Gross Profit is: Select one: a. Overstated $2 b. Understated $2 c. Overstated $7 d. Understated $7 e. Overstated $3 Question 21 Not yet answered Points out of 1.00 Flag question Question text The Leto Company had current assets of $500 and current liabilities of $400 prior to the following transactions: 1) Declaration of a cash dividend, $100 2) Payment of an account payable, $80 The combined effect of these two transactions will cause what effect on Working Capital and the Working Capital Ratio, respectively? Select one: a. No Effect, Decrease b. No Effect, Increase c. No Effect, No Effect d. Decrease, No Effect e. Decrease, Decrease Question 22 Not yet answered Points out of 1.00 Flag question Question text Jefferson Services Company records the collection of $325 cash for previously accrued revenue and then makes an accrual of $500 for another revenue. The impact of these two entries on total Net Income and Working Capital (respectively) is an increase of: Select one: a. $325, $825 b. $825, $325 c. $325, $500 d. $500, $825 e. $500, $500 Question 23 Not yet answered Points out of 1.00 Flag question Question text The Jenny Company fails to record these two journal entries on 12/31/18: 1. Issuance of Common Stock for Cash: $40 2. Expiration of Prepaid Insurance: $10 Working capital will be: Select one: a. Correct b. $10 overstated c. $40 understated d. $30 understated e. $30 overstated Question 24 Not yet answered Points out of 1.00 Flag question Question text The combined declaration and payment of cash dividends has what effect on Net Income and Working Capital, respectively? Select one: a. No effect, Decreased b. Decreased, No effect c. Decreased, Decreased d. No effect, No effect e. Decreased, Increased Question 25 Not yet answered Points out of 1.00 Flag question Question text Which item is included on the income statement? Select one: a. Contingent Gain, but not Extraordinary Gains b. Extraordinary Gains, but not Contingent Gain c. Both Contingent Gain and Extraordinary Gain d. Neither Contingent Gain nor Extraordinary Gain Question 26 Not yet answered Points out of 1.00 Flag question Question text The Hooper River Company makes three adjusting entries at 12/31/18: Depreciation $75 Accrued Revenue $40 Accrued Expense $100 Indicate the net effect of these three entries on Net Income and Working Capital, respectively: Select one: a. Decrease $135, Decrease $135 b. Decrease $135, Increase $40 c. Decrease $60, Decrease $60 d. Decrease $135, Decrease $35 e. Decrease $135, Decrease $60 Question 27 Not yet answered Points out of 1.00 Flag question Question text Following all closing journal entries, the Blake Retained Earnings account balance will be: Select one: a. $38,000 b. $54,000 c. $46,000 d. $20,000 e. $18,000 Question 28 Not yet answered Points out of 1.00 Flag question Question text THE DATA FOR THIS QUESTION ARE THE SAME AS THE DATA FOR THE PREVIOUS QUESTION. Following all closing entries, the Blake Trial Balance totals will be: Select one: a. $161,000 b. $209,000 c. $153,000 d. $145,000 e. $191,000 Question 29 Not yet answered Points out of 1.00 Flag question Question text At the end of the current year, the owner's equity in Solana Donuts is $188,000. During the year, the assets of the business had increased by $90,000, and the liabilities had decreased by $36,000. Owner's equity at the beginning of the year must have been: Select one: a. $62,000 b. $126,000 c. $314,000 d. $242,000 e. $134,000 Question 30 Not yet answered Points out of 1.00 Flag question Question text If a retail store has current liabilities of $100 and a Working Capital ratio of 3.2, what is Working Capital? Select one: a. $220 b. $320 c. $31.25 d. $68.75 e. $420 Question 31 Not yet answered Points out of 1.00 Flag question Question text The predecessor of FASB was: Select one: a. IRS b. PCAOB c. SEC d. IASB e. APB Question 32 Not yet answered Points out of 1.00 Flag question Question text A stock dividend will always decrease Select one: a. Retained Earnings b. Common Stock c. Net Income d. Dividends Payable Question 33 Not yet answered Points out of 1.00 Flag question Question text Which item has a credit balance? Select one: a. Accumulated Depreciation b. Purchases c. Sales Discount d. Treasury Stock Question 34 Not yet answered Points out of 1.00 Flag question Question text Which account is not closed at the end of an accounting period? Select one: a. Sales b. Unearned Revenue c. Dividends d. Freight-out Question 35 Not yet answered Points out of 1.00 Flag question Question text If the adjusting entry to record the earned portion of Rent Received in advance is not recorded: Select one: a. Current Liabilities will be Overstated b. Current Liabilities will be Understated c. Retained Earnings will be Overstated d. Net Income will be Overstated