{"id":23284,"date":"2022-01-06T12:17:30","date_gmt":"2022-01-06T12:17:30","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/____-1-which-of-the-following-events-cannot-be-quantified-into\/"},"modified":"2022-01-06T12:17:30","modified_gmt":"2022-01-06T12:17:30","slug":"____-1-which-of-the-following-events-cannot-be-quantified-into","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/____-1-which-of-the-following-events-cannot-be-quantified-into\/","title":{"rendered":"____ 1. which of the following events cannot be quantified into"},"content":{"rendered":"
\n

____ 1. Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?<\/p>\n

a. The sale of store equipment.<\/p>\n

b. The purchase of a new computer.<\/p>\n

c. The appointment of a new CPA firm to perform an audit.<\/p>\n

d. Payment of income taxes.<\/p>\n

\u00a0<\/p>\n

___ 2. Anderson Company purchased equipment for $2,400 cash. As a result of this event:<\/p>\n

a. owner\u2019s equity decreased by $2,400.<\/p>\n

b. total assets remained unchanged.<\/p>\n

c. total assets increased by $2,400.<\/p>\n

d. Both a and b.<\/p>\n

\u00a0<\/p>\n

____ 3. Which of the following statements related to the adjusted trial balance is incorrect?<\/p>\n

a. It is prepared before adjusting entries have been made.<\/p>\n

b. It shows the balances of all accounts at the end of the accounting period.<\/p>\n

c. It proves the equality of the total debit balances and the total credit balances in the<\/p>\n

ledger.<\/p>\n

d. Financial statements can be prepared directly from the adjusted trial balance.<\/p>\n

\u00a0<\/p>\n

____ 4. Carson Supply bought equipment at a cost of $115,000 on January 1, 2010. It originally had an estimated life of five years and a salvage value of $12,000. Carson uses the straight-line depreciation method. On January 1, 2014, Carson decided the useful life likely would end on December 31, 2017, with a salvage value of $8,000. The depreciation expense recorded in 2014 should be:<\/p>\n

a. $11,300.<\/p>\n

b. $8,150.<\/p>\n

c. $10,866.<\/p>\n

d. $6,150. \u00a0<\/p>\n

\u00a0<\/p>\n

____ 5. Dawson Company bought furniture on account. Their accountant debited Furniture and credited Accounts Receivable. An appropriate correcting entry is:<\/p>\n

\u00a0<\/p>\n

a. debit Accounts Receivable and credit Accounts Payable.<\/p>\n

b. debit Furniture and credit Accounts Payable.<\/p>\n

c. debit Miscellaneous Expense and credit Accounts Payable.<\/p>\n

d. No correcting entry is needed.<\/p>\n

\u00a0<\/p>\n

____ 6. Income Summary has a credit balance of $29,000 for K. Eagle Co. after closing revenues and expenses. The entry to close Income Summary is:<\/p>\n

\u00a0<\/p>\n

a. credit Income Summary $29,000, debit Owner\u2019s Capital $29,000.<\/p>\n

b. credit Income Summary $29,000, debit Owner\u2019s Drawing $29,000.<\/p>\n

c. debit Income Summary $29,000, credit Owner\u2019s Capital $29,000.<\/p>\n

d. debit Income Summary $29,000, credit Owner\u2019s Drawing $29,000.<\/p>\n

\u00a0<\/p>\n

____ 7. Bloom Company exchanged old equipment for new equipment. The old equipment had a cost of $80,000, accumulated depreciation of $46,000, and a fair market value of $30,000. The exchange had commercial substance. Bloom paid an additional $16,000 in cash. The new equipment should be recorded at:<\/p>\n

a. $64,000.<\/p>\n

b. $46,000.<\/p>\n

c. $30,000.<\/p>\n

d. $50,000.<\/p>\n

\u00a0<\/p>\n

____ 8.Left Company purchased Right Company on September 1, 2010, for $22,000,000. On that date the book value of Right’s net assets was $13,000,000; the fair market value of the net assets was $19,000,000. The entry to record the purchase of Right Company should include Goodwill of:<\/p>\n

a. $0.<\/p>\n

b. $9,000,000.<\/p>\n

c. $3,000,000. \u00a0<\/p>\n

d. $22,000,000.<\/p>\n

\u00a0<\/p>\n

____ 9.A contingent liability should be recorded in the accounts if it is:<\/p>\n

a. remote.<\/p>\n

b. reasonably possible.<\/p>\n

c. probable and reasonably estimable.<\/p>\n

d. Both (a) and (b) above.<\/p>\n

\u00a0<\/p>\n

____ 10. In a period of rising prices, the inventory method that results in the lowest income tax<\/p>\n

payment is:<\/p>\n

a. FIFO.<\/p>\n

b. LIFO.<\/p>\n

c. average cost.<\/p>\n

d. specific identification.<\/p>\n

\u00a0<\/p>\n

____ 11. On June 30, Gaston Company issued a $9,000, 8%, 6-month note to National Bank. \u00a0The entry on Gaston’s books to record the payment of the note at maturity will include a credit to Cash for:<\/p>\n

a. $9,360. \u00a0<\/p>\n

b. $9,720.<\/p>\n

c. $9,000.<\/p>\n

d. $9,180.<\/p>\n

\u00a0<\/p>\n

____ 12. The following information is available for McDaniel Company:<\/p>\n

Beginning Inventory \u00a0 $ 80,000<\/p>\n

Cost of Goods Sold \u00a0 360,000<\/p>\n

Ending Inventory \u00a0 \u00a060,000<\/p>\n

Net Sales \u00a0 \u00a0 \u00a0 \u00a0 \u00a0600,000<\/p>\n

\u00a0<\/p>\n

Inventory turnover for the year is:<\/p>\n

a. 4.5 times.<\/p>\n

b. 5.1 times. \u00a0<\/p>\n

c. 10.0 times.<\/p>\n

d. 6.0 times.<\/p>\n

\u00a0<\/p>\n

____ 13. Sister Sue Corporation\u2019s unadjusted trial balance includes the following balances<\/p>\n

(assume normal balances):<\/p>\n

Accounts Receivable \u00a0 $247,000<\/p>\n

Allowance for Doubtful Accounts \u00a0 4,400<\/p>\n

Bad debts are estimated to be 4% of outstanding receivables. What amount of bad debts expense will the company record?<\/p>\n

a. $9,880<\/p>\n

b. $10,056<\/p>\n

c. $5,304<\/p>\n

d. $5,480 \u00a0<\/p>\n

\u00a0<\/p>\n

____ 14. The following information is available for Aikman Company:<\/p>\n

Sales $210,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Freight-in $7,000<\/p>\n

Ending Inventory 18,000 \u00a0 \u00a0 \u00a0 Purchase Returns and Allowances \u00a0 \u00a03,000<\/p>\n

Purchases 120,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Beginning Inventory 22,000<\/p>\n

\u00a0<\/p>\n

Aikman\u2019s cost of goods sold is:<\/p>\n

a. $188,000.<\/p>\n

b. $185,000.<\/p>\n

c. $124,000.<\/p>\n

d. $128,000.\u00a0<\/p>\n

\u00a0<\/p>\n

____ 15. If ending inventory is understated, net income and assets will be:<\/p>\n

Net Income Assets<\/p>\n

a. Overstated Overstated<\/p>\n

b. Understated Understated<\/p>\n

c. Understated Unaffected<\/p>\n

d. None of the above.<\/p>\n

\u00a0<\/p>\n

____ 16. A company purchased land for $60,000 cash. Real estate brokers’ commission was $6,500 and $10,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at:<\/p>\n

a. $70,000.<\/p>\n

b. $60,000.<\/p>\n

c. $76,500. \u00a0<\/p>\n

d. $66,500.<\/p>\n

\u00a0<\/p>\n

____ 17. Which of the following errors will cause a trial balance to be out of balance? The entryto record a payment on account was:<\/p>\n

\u00a0<\/p>\n

a. posted as a debit to Cash and a debit to Accounts Payable.<\/p>\n

b. posted as a debit to Cash and a credit to Accounts Payable.<\/p>\n

c. posted as a debit to Accounts Receivable and a credit to Cash.<\/p>\n

d. not posted at all.<\/p>\n

\u00a0<\/p>\n

____ 18. The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the:<\/p>\n

a. economic entity assumption.<\/p>\n

b. monetary unit assumption.<\/p>\n

c. going concern assumption.<\/p>\n

d. time period assumption.<\/p>\n

\u00a0<\/p>\n

____ 19. All of the following are intangible assets except:<\/p>\n

a. patents.<\/p>\n

b. franchises.<\/p>\n

c. goodwill.<\/p>\n

d. oil deposits.<\/p>\n

\u00a0<\/p>\n

____ 20. A daily cash count of register receipts made by a cashier department supervisor demonstrates an application of which of the following internal control principles?<\/p>\n

a. Documentation procedures.<\/p>\n

b. Independent internal verification.<\/p>\n

c. Establishment of responsibility.<\/p>\n

d. Segregation of duties.<\/p>\n

\u00a0<\/p>\n

____ 21. When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a:<\/p>\n

a. debit to an expense account.<\/p>\n

b. credit to an expense account.<\/p>\n

c. debit to the allowance account.<\/p>\n

d. credit to the allowance account.<\/p>\n

\u00a0<\/p>\n

____ 22. Shipping terms of FOB destination mean that the:<\/p>\n

a. shipping charges are debited to Freight-Out.<\/p>\n

b. purchaser is responsible for the shipping charges.<\/p>\n

c. items should be in the purchaser’s inventory account at year-end if the items are in<\/p>\n

transit.<\/p>\n

d. Both (a) and (b) above.<\/p>\n

\u00a0<\/p>\n

____ 23. FICA taxes do not provide workers with:<\/p>\n

a. supplemental retirement.<\/p>\n

b. life insurance.<\/p>\n

c. employment disability.<\/p>\n

d. medical benefits.<\/p>\n

\u00a0<\/p>\n

____ 24. A petty cash fund:<\/p>\n

a. results in expense accounts being charged when cash is disbursed.<\/p>\n

b. should be replenished when the fund is low and at the end of the period.<\/p>\n

c. results in expense accounts being charged when the fund is replenished.<\/p>\n

d. Both (b) and (c) above.<\/p>\n

\u00a0<\/p>\n

___ 25. If merchandise is sold for $14,000 subject to credit terms of 1\/15, n\/30, the entry to<\/p>\n

record collection in full within the discount period would include a:<\/p>\n

a. credit to Sales Discounts for $140.<\/p>\n

b. credit to Accounts Receivable for $13,860.<\/p>\n

c. credit to Accounts Receivable for $140.<\/p>\n

d. None of the above.<\/p>\n

\u00a0<\/p>\n

____ 26. Barley Company’s records show the following for the month of March:<\/p>\n

Total Owner’s Equity at March 1 ……………………………………….. $140,000<\/p>\n

Total Owner’s Equity at March 31 ……………………………………… 210,000<\/p>\n

Total Revenues ……………………………………………………………… 530,000<\/p>\n

Total Withdrawals by Owner …………………………………………….. 25,000<\/p>\n

\u00a0<\/p>\n

There were no investments made during March. Total expenses for March were:<\/p>\n

a. $505,000.<\/p>\n

b. $530,000.<\/p>\n

c. $435,000. \u00a0<\/p>\n

d. $460,000.<\/p>\n

\u00a0<\/p>\n

____ 27. Fordham Company’s financial information is presented below.<\/p>\n

Sales $ ???? \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Purchase Returns and Allowances $ 20,000<\/p>\n

Sales Returns and Allowances 30,000 \u00a0 \u00a0 \u00a0 Ending Inventory 60,000<\/p>\n

Net Sales 1,010,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Cost of Goods Sold \u00a0 \u00a0 410,000<\/p>\n

Beginning Inventory \u00a0 \u00a0 ???? \u00a0 \u00a0 \u00a0Gross Profit ????<\/p>\n

Purchases \u00a0 \u00a0 \u00a0450,000<\/p>\n

\u00a0<\/p>\n

The missing amounts above are:<\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0Sales \u00a0 \u00a0 \u00a0Beginning Inventory \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Gross Profit<\/p>\n

a. $1,040,000 \u00a0 \u00a0 \u00a0 $40,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$600,000<\/p>\n

b. $980,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $20,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$630,000<\/p>\n

c. $1,040,000 \u00a0 \u00a0 \u00a0 \u00a0 $20,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$600,000<\/p>\n

d. $980,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $40,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$630,000<\/p>\n

\u00a0<\/p>\n

____ 28. The preparation of closing entries:<\/p>\n

a. is an optional step in the accounting cycle.<\/p>\n

b. results in zero balances in all accounts at the end of the period so that they are<\/p>\n

ready for the following period’s transactions.<\/p>\n

c. results in transferring the balances in all nominal accounts to owner’s capital.<\/p>\n

d. is necessary before financial statements can be prepared.<\/p>\n

\u00a0<\/p>\n

____ 29. Allowance for Doubtful Accounts is reported in the:<\/p>\n

a. balance sheet as a contra liability account.<\/p>\n

b. balance sheet as a contra asset.<\/p>\n

c. income statement under other expenses and losses.<\/p>\n

d. income statement under other revenues and gains.<\/p>\n

\u00a0<\/p>\n

____ 30. Two categories of expenses for merchandising companies are:<\/p>\n

a. cost of goods sold and operating expenses.<\/p>\n

b. operating expenses and financing expenses.<\/p>\n

c. cost of goods sold and financing expenses.<\/p>\n

d. sales and cost of goods sold.<\/p>\n

\u00a0<\/p>\n

PART II \u2014 MATCHING<\/p>\n

\u00a0<\/p>\n

Instructions: Designate the terminology that best represents the definition or statement given below by placing the identifying letter(s) in the space provided. No letter should be used more than once.<\/p>\n

\u00a0<\/p>\n

A. Additions and improvements \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0N. Debit<\/p>\n

B. Natural resources \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 O. Declining-balance method<\/p>\n

C. Allowance method \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0P. Depletion<\/p>\n

D. Amortization \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Q. Depreciable cost<\/p>\n

E. Periodic inventory system \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 R. Direct write-off method<\/p>\n

F. Book value \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 S. Economic entity assumption<\/p>\n

G. Nominal accounts \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0T. First-in, first-out method<\/p>\n

H. Closing entries \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 U. Inventoriable costs<\/p>\n

I. Comparability \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0V. Going-concern assumption<\/p>\n

J. Permanent accounts \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 W. Internal control<\/p>\n

K. Consistency \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 X. Time period assumption<\/p>\n

L. Contra asset \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Y. Last-in, first out method<\/p>\n

M. Cost principle \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Z. Retail inventory method<\/p>\n

\u00a0<\/p>\n

___ 1. Use of the same accounting principles and methods from period to period by the same<\/p>\n

business enterprise. \u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

___ 2. The total amount subject to depreciation.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 3. An assumption that the economic life of a business can be divided into artificial time<\/p>\n

periods. \u2013 X. Time period assumption<\/p>\n

\u00a0<\/p>\n

___ 4. The cost of an asset less its accumulated depreciation.<\/p>\n

\u00a0<\/p>\n

___ 5. The left side of an account. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 6. The periodic write-off of an intangible asset. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 7. A depreciation method that produces decreasing periodic depreciation by applying a constant rate to the book value of the asset.<\/p>\n

\u00a0<\/p>\n

___ 8. An inventory method that records the earliest goods purchased as cost of goods sold.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 9. This method of accounting for uncollectible accounts is required when bad debts are<\/p>\n

significant in size. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 10. Accumulated depreciation is an example of this term. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 11. An assumption that requires that the activities of a company be kept separate and distinct from the activities of its owner. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 12. All accounts appearing on the post-closing trial balance. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 13. An inventory costing method which assumes that the latest units purchased are the first to be allocated to cost of goods sold. \u00a0<\/p>\n

\u00a0<\/p>\n

___ 14. An accounting principle that requires assets be recorded at their historical cost.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 15. Revenue, expense, and drawing accounts whose balances are transferred to owner’s capital at the end of an accounting period.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 16. A system in which detailed records are not maintained and cost of goods sold is determined only at the end of an accounting period.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 17. Assets such as timber, oil, coal, and mineral deposits.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 18. Entries at the end of an accounting period to transfer the balances of temporary accounts to permanent owner’s equity accounts.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 19. The pool of costs that consist of the cost of the beginning inventory and the cost of goods purchased.\u00a0<\/p>\n

\u00a0<\/p>\n

___ 20. The methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records.<\/p>\n

\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

____ 1. Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction? a. The sale of store equipment. b. The purchase of a new computer. c. The appointment of a new CPA firm to perform an audit. d. Payment of income taxes. \u00a0 ___ 2. Anderson Company […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-23284","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=23284"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23284\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=23284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=23284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=23284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}