Accounting

Front 1

The merchandise inventory account is never debited or credited during the year using the periodic method

Back 1

True

Front 2

Two adjustments are made to the merchandise inventory account on the work sheet.

Back 2

True

Front 3

The merchandise inventory account always reflect the current inventory on hand

Back 3

False

Front 4

The amount of inventory on hand is determined by physically counting the goods on hand and determining the cost of those goods

Back 4

True

Front 5

at the end of the accounting period, the merchandise inventory account is debited for the beginning inventory amount.

Back 5

False

Front 6

Both the debit and credit amounts in the merchandise inventory account at the end of an accounting period are used to calculate the cost of goods sold.

Back 6

True

Front 7

The credit amount for the income summary in the Adjusted Trial Balance column reflect the inventory on hand at the end of the accounting period.

Back 7

True

Front 8

Merchandise Inventory has a normal debit balance

Back 8

True

Front 9

if the ending inventory is overstated for any reason, net income will also be overstated

Back 9

True

Front 10

If beginning inventory is 30,000 and ending inventory is 25,000, the cost of the inventory on hand at the end of the accounting period is 25,000.

Back 10

True

Front 11

After adjustments are made to merchandise inventory account and posting is completed the income summary account will reflect bot the amount of beginning and ending inventory

Back 11

true

Front 12

the income summary account will always reflect the same balance as the merchandise inventory account an the end of the accounting period.

Back 12

False

Front 13

If beginning inventory is 12,000 and ending inventory is 9,000 the first step in the adjusting process is to credit merchandise inventory for 9,000

Back 13

False

Front 14

if the beginning inventory is 80,000 and ending inventory is 10,000 the balance of the merchandise inventory account after adjustment will be 70,000

Back 14

False

Front 15

The credit to the merchandise inventory account when making adjustments at the end of the accounting period will be the same amount as was debited at the en of the previous accounting period.

Back 15

True

Front 16

Some business require payment before delivering a product or performing a service.

Back 16

True

Front 17

cash received in advance for performing a service or delivering a product is called unearned revenue.

Back 17

True

Front 18

Unearned revenue is a liability

Back 18

True

Front 19

Under the accrual basis if accounting revenue is recorded when earned regardless of when cash is received

Back 19

True

Front 20

the transaction to record unearned revenue results in an asset account.

Back 20

True

Front 21

when unearned revenue is finally earned, a revenue account is debited to reflect the amount of the revenue earned.

Back 21

False

Front 22

The balance of Unearned Revenue is reported on the income statement at the end of the accounting period.

Back 22

False

Front 23

An increase in a revenue account may reflect a decrease in a liability account.

Back 23

True

Front 24

An increase in a revenue account may reflect in an increase in an asset account.

Back 24

True

Front 25

Purchases Return and Allowance is a contra-cost account.

Back 25

False

Front 26

Purchase Discount is a contra-cost account.

Back 26

True

Front 27

Adjustments are made on the work sheet for both beginning and ending merchandise inventory.

Back 27

True

Front 28

A contra revenue account is given a "1" extension to its related ledger accounts number.

Back 28

True

Front 29

when part of the amount of unearned revenue has been earned, the unearned revenue account must be adjusted.

Back 29

True

Front 30

When part of the amount of unearned revenue has been earned an the account adjusted accordingly a revenue account must be adjusted by that partial amount.

Back 30

True

Front 31

only the debit amount for the income summary account must be extended in the work sheet.

Back 31

False

Front 32

the adjusted balance of the merchandise inventory account is extended to the Balance Sheet columns of the work sheet.

Back 32

True

Front 33

only the debit adjustment amount in the merchandise inventory account is extended to the adjusted Trial Balance columns of the work sheet

Back 33

True

Front 34

only the adjusted credit balance in the merchandise inventory account is extended to the adjusted Trial Balance columns of the work sheet

Back 34

False

Front 35

Making adjustment on the work sheet has no effect on the actual accounts in the general journal.

Back 35

True