Acct 2000 Exam 2 LSU terms
__________ property are property which can be held within the commercial enterprise with
the expectancy of changing them into cash or using them in the commercial enterprise w/ in
a distinctly quick time period. - ANS-modern-day
1. Accumulated Deprecation is what type of account? ________. What monetary
announcement would include this account? ______________ - ANS-Contra Asset Account
Balance Sheet
1. Adjustments are organized each time ______________ are issued to be able to make
sure all accounts are correctly suggested. - ANS-Financial Statements
1. List the 3 varieties of reconciling gadgets for which a bank stability have to be adjusted.: -
ANS-Add - Deposits in transit
Subtract - Outstanding assessments
Add/Subtract - financial institution mistakes
1. The ______ Recognition Principle requires companies to apprehend sales within the
accounting duration wherein it's miles earned. - ANS-Revenue
1. The entry to record envisioned uncollectible accounts includes and growth to
____________ and an growth within the __________________. - ANS-Bad Debt Expense
Allowance for Doubtful Accounts
1. With _______Accounting, transactions are recorded within the length wherein the
occasion occurs, now not when the cash is received. - ANS-Accrual
1. With the _________________________ stock approach, Cost of Goods Sold and
Inventory is determined at the stop of the accounting length by means of a physical count
number. - ANS-Periodic
1) Adjustments for unearned sales:
a. Decrease liabilities and boom sales
b. Increase liabilities and increase revenues
c. Increase assets and boom sales
d. Decrease revenues and boom assets - ANS-a. Decrease liabilities and growth revenues
1) Colleen Mooney earned a earnings of $600 for the last week of September. She can be
paid on October 1. The adjustment for Colleen's corporation at September 30 is:
a. No access is needed.
B. Increase to Salaries and Wages Expense, $six hundred and Increase to Salaries and
Wages Payable, $six hundred
c. Increase to Salaries and Wages Expense, $six hundred and Increase to Cash, $six
hundred
d. Increase to Salaries and Wages Payable, $600 and Increase to Cash, $600 - ANS-b.
Increase to Salaries and Wages Expense, $600 and Increase to Salaries and Wages
Payable, $600
1) Each of the subsequent is a chief type (or category) of adjustment besides:
a. Prepaid prices
b. Accrued sales
c. Accrued costs
d. Earned charges - ANS-d. Earned costs
, 1) If a agency fails to document predicted terrible debt rate,
a. Internet realizable fee is discreet.
B. Prices are understated.
C. Sales are understated.
D. Receivables are understated. - ANS-b. Fees are understated.
1) If beginning stock is $60,000, value of goods bought is $380,000, and ending inventory is
$50,000, what's value of goods offered under a periodic device?
A. $390,000
b. $370,000
c. $330,000
d. $420,000 - ANS-a. $390,000
1) In a financial institution reconciliation, deposits in transit are:
a. Deducted from the book stability
b. Added to the book stability
c. Added to the financial institution balance
d. Deducted from the bank balance - ANS-c. Added to the financial institution balance
1) In a financial institution reconciliation, first-rate checks are:
a. Deducted from the book balance
b. Added to the ebook stability
c. Added to the bank balance
d. Deducted from the bank stability - ANS-d. Deducted from the bank balance
1) In growing prices the _______________________ fee drift approach will result in lowest
cost of goods sold and the best net income.
A. FIFO
b. LIFO
c. Average-price
d. Specific Identification - ANS-a. FIFO
1) Prepaid expenses are:
a. Paid and recorded in an asset account earlier than they are used or fed on
b. Paid and recorded in an asset account after they're used or consumed.
C. Incurred but no longer yet paid or recorded.
D. Incurred and already paid or recorded. - ANS-a. Paid and recorded in an asset account
before they're used or ate up
1) To file the adjustment for an NSF test obtained lower back by means of the financial
institution, a enterprise might
a. Increase coins
b. Increase Accounts Receivable
c. Decrease Accounts Receivable
d. Increase Miscellaneous price - ANS-b. Increase Accounts Receivable
1) Why should a financial institution reconciliation be organized?
A. To make sure personnel have now not dedicated fraud.
B. To give an explanation for any distinction among the depositor's balance according to
books and the stability consistent with bank.
C. To explain any difference among the financial institution deposits and the tests written.
D. To make certain the real cash stability is similar to the cash obtained from customers -
ANS-b. To provide an explanation for any difference among the depositor's balance
according to books and the stability in keeping with bank.
__________ property are property which can be held within the commercial enterprise with
the expectancy of changing them into cash or using them in the commercial enterprise w/ in
a distinctly quick time period. - ANS-modern-day
1. Accumulated Deprecation is what type of account? ________. What monetary
announcement would include this account? ______________ - ANS-Contra Asset Account
Balance Sheet
1. Adjustments are organized each time ______________ are issued to be able to make
sure all accounts are correctly suggested. - ANS-Financial Statements
1. List the 3 varieties of reconciling gadgets for which a bank stability have to be adjusted.: -
ANS-Add - Deposits in transit
Subtract - Outstanding assessments
Add/Subtract - financial institution mistakes
1. The ______ Recognition Principle requires companies to apprehend sales within the
accounting duration wherein it's miles earned. - ANS-Revenue
1. The entry to record envisioned uncollectible accounts includes and growth to
____________ and an growth within the __________________. - ANS-Bad Debt Expense
Allowance for Doubtful Accounts
1. With _______Accounting, transactions are recorded within the length wherein the
occasion occurs, now not when the cash is received. - ANS-Accrual
1. With the _________________________ stock approach, Cost of Goods Sold and
Inventory is determined at the stop of the accounting length by means of a physical count
number. - ANS-Periodic
1) Adjustments for unearned sales:
a. Decrease liabilities and boom sales
b. Increase liabilities and increase revenues
c. Increase assets and boom sales
d. Decrease revenues and boom assets - ANS-a. Decrease liabilities and growth revenues
1) Colleen Mooney earned a earnings of $600 for the last week of September. She can be
paid on October 1. The adjustment for Colleen's corporation at September 30 is:
a. No access is needed.
B. Increase to Salaries and Wages Expense, $six hundred and Increase to Salaries and
Wages Payable, $six hundred
c. Increase to Salaries and Wages Expense, $six hundred and Increase to Cash, $six
hundred
d. Increase to Salaries and Wages Payable, $600 and Increase to Cash, $600 - ANS-b.
Increase to Salaries and Wages Expense, $600 and Increase to Salaries and Wages
Payable, $600
1) Each of the subsequent is a chief type (or category) of adjustment besides:
a. Prepaid prices
b. Accrued sales
c. Accrued costs
d. Earned charges - ANS-d. Earned costs
, 1) If a agency fails to document predicted terrible debt rate,
a. Internet realizable fee is discreet.
B. Prices are understated.
C. Sales are understated.
D. Receivables are understated. - ANS-b. Fees are understated.
1) If beginning stock is $60,000, value of goods bought is $380,000, and ending inventory is
$50,000, what's value of goods offered under a periodic device?
A. $390,000
b. $370,000
c. $330,000
d. $420,000 - ANS-a. $390,000
1) In a financial institution reconciliation, deposits in transit are:
a. Deducted from the book stability
b. Added to the book stability
c. Added to the financial institution balance
d. Deducted from the bank balance - ANS-c. Added to the financial institution balance
1) In a financial institution reconciliation, first-rate checks are:
a. Deducted from the book balance
b. Added to the ebook stability
c. Added to the bank balance
d. Deducted from the bank stability - ANS-d. Deducted from the bank balance
1) In growing prices the _______________________ fee drift approach will result in lowest
cost of goods sold and the best net income.
A. FIFO
b. LIFO
c. Average-price
d. Specific Identification - ANS-a. FIFO
1) Prepaid expenses are:
a. Paid and recorded in an asset account earlier than they are used or fed on
b. Paid and recorded in an asset account after they're used or consumed.
C. Incurred but no longer yet paid or recorded.
D. Incurred and already paid or recorded. - ANS-a. Paid and recorded in an asset account
before they're used or ate up
1) To file the adjustment for an NSF test obtained lower back by means of the financial
institution, a enterprise might
a. Increase coins
b. Increase Accounts Receivable
c. Decrease Accounts Receivable
d. Increase Miscellaneous price - ANS-b. Increase Accounts Receivable
1) Why should a financial institution reconciliation be organized?
A. To make sure personnel have now not dedicated fraud.
B. To give an explanation for any distinction among the depositor's balance according to
books and the stability consistent with bank.
C. To explain any difference among the financial institution deposits and the tests written.
D. To make certain the real cash stability is similar to the cash obtained from customers -
ANS-b. To provide an explanation for any difference among the depositor's balance
according to books and the stability in keeping with bank.
