Which of the following are made AFTER the financial statements are prepared Transaction Entries B) Adjusting Entries C) Closing Entries Truman Co sells a large number of common household items, while Stapleton sells a small number of expensive items The two companies report the same dollar amount for ending inventory and gross profit for the year Which of the following is most likely true Truman has a higher inventory turnover ratio and higher gross profit ratio Truman has a higher inventory turnover ratio, and Stapleton has a lower gross profit ratio Truman has a higher inventory turnover ratio, and Stapleton has a higher gross profit ratio Stapleton has a higher inventory turnover ratio and higher gross profit ratio For a journal entry with only two lines, the following entry is valid Decrease in Owners' Equity, Increase in Dividends True B) False ABC borrowed $100,000 on November 1, 2018, and signed a six month note bearing interest at 12 Principal and interest are payable in full at maturity on May 1, 2019 In connection with this note, ABC should report interest expense in 2019 for the amount of A) $4,000 B) $2,000 C) $6,000 D) $0 On January 1, ABC sold $30,000 in products to a customer on account Then on January 10, ABC collected the cash on that account What is the impact on ABC's accounting equation from the collection of cash on January 10 No net effect on the accounting equation Assets increase and stockholders' equity increases Assets decrease and liabilities decrease Assets increase and liabilities decrease

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Posted on Sep 11, 2024

Which of the following are made AFTER the financial statements are prepared?
1. Transaction Entries B) Adjusting Entries C) Closing Entries

Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two companies report the same dollar amount for ending inventory and gross profit for the year. Which of the following is most likely true?
1. Truman has a higher inventory turnover ratio and higher gross profit ratio.
2. Truman has a higher inventory turnover ratio, and Stapleton has a lower gross profit ratio.
3. Truman has a higher inventory turnover ratio, and Stapleton has a higher gross profit ratio.
4. Stapleton has a higher inventory turnover ratio and higher gross profit ratio.
For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Increase in Dividends.
1. True B) False

ABC borrowed $100,000 on November 1, 2018, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2019. In connection with this note, ABC should report interest expense in 2019 for the amount of:

A) $4,000. B) $2,000. C) $6,000. D) $0.

On January 1, ABC sold $30,000 in products to a customer on account. Then on January 10, ABC collected the cash on that account. What is the impact on ABC's accounting equation from the collection of cash on January 10?
1. No net effect on the accounting equation.
2. Assets increase and stockholders' equity increases.
3. Assets decrease and liabilities decrease.
4. Assets increase and liabilities decrease.