Chapter 14 Review Questions With
verified answers by experts
A ppfirm ppis pppreparing ppto ppmake ppadjusting ppentries ppat ppthe ppend ppof ppthe ppaccounting
ppperiod. ppThe ppbalance ppof ppthe ppmerchandise ppinventory ppaccount ppis pp$200,000. ppIf
ppthe ppfirm ppis ppusing ppthe ppperiod ppinventory ppsystem, ppwhat ppdoes ppthis ppbalance
pprepresent? pp- ppBeginning ppInventory
What ppwork ppsheet ppamounts ppare ppused ppto ppcompute ppcost ppof ppgoods ppsold? pp-
ppBeginning ppInventory
Purchases
- ppPurch ppRet pp& ppAllow
- ppPurch ppDiscounts
+ ppFreight-In
Ending ppInventory
Why ppare ppboth ppthe ppdebit ppand ppcredit ppamounts ppin ppthe ppAdjustments ppcolumns ppon
ppthe ppincome ppsummary ppline ppof ppthe ppwork ppsheet ppextended ppto ppthe ppAdjusted ppTrial
ppBalance ppcolumns? pp- ppThe ppindividual ppamounts ppare ppneeded ppfor ppthe ppcalculation ppof
ppcost ppof ppgoods ppsold ppon ppthe ppincome ppstatement.
What ppis ppan ppunearned pprevenue? pp- ppCash ppreceived ppin ppadvance ppof ppdelivering ppa
ppproduct ppor ppperforming ppa ppservice.
List ppexamples ppof ppunearned pprevenue... pp- pp- ppInsurance ppcompanies
- ppMagazine ppPublishers
- ppApartment ppComplexes
- ppCollege ppfood ppservices
- ppProfessional ppsports/Theaters ppthat ppsell ppseason pptickets
What ppdoes ppthe ppdifference ppbetween ppthe pptotals ppof ppthe ppincome ppstatement
ppcolumns pprepresent?
What ppdoes ppthe ppdifference ppbetween ppthe ppbalance ppsheet ppcolumns pprepresent? pp- ppIS
ppDebit ppBal. pp& ppBS ppCredit ppBal. pp= ppNet ppIncome
IS ppCredit ppVal. pp& ppBS ppDebit ppBal. pp= ppNet ppLoss
A ppfirm ppis pppreparing ppto ppmake ppadjusting ppentries ppat ppthe ppend ppof ppthe ppaccounting
ppperiod. ppThe ppbalance ppof ppthe ppmerchandise ppinventory ppaccount ppis pp$100,000. ppIf
ppthe ppfirm ppis ppusing ppthe ppperpetual ppinventory ppsystem, ppwhat ppdoes ppthis ppbalance
pprepresent. pp- ppEnding ppInventory
verified answers by experts
A ppfirm ppis pppreparing ppto ppmake ppadjusting ppentries ppat ppthe ppend ppof ppthe ppaccounting
ppperiod. ppThe ppbalance ppof ppthe ppmerchandise ppinventory ppaccount ppis pp$200,000. ppIf
ppthe ppfirm ppis ppusing ppthe ppperiod ppinventory ppsystem, ppwhat ppdoes ppthis ppbalance
pprepresent? pp- ppBeginning ppInventory
What ppwork ppsheet ppamounts ppare ppused ppto ppcompute ppcost ppof ppgoods ppsold? pp-
ppBeginning ppInventory
Purchases
- ppPurch ppRet pp& ppAllow
- ppPurch ppDiscounts
+ ppFreight-In
Ending ppInventory
Why ppare ppboth ppthe ppdebit ppand ppcredit ppamounts ppin ppthe ppAdjustments ppcolumns ppon
ppthe ppincome ppsummary ppline ppof ppthe ppwork ppsheet ppextended ppto ppthe ppAdjusted ppTrial
ppBalance ppcolumns? pp- ppThe ppindividual ppamounts ppare ppneeded ppfor ppthe ppcalculation ppof
ppcost ppof ppgoods ppsold ppon ppthe ppincome ppstatement.
What ppis ppan ppunearned pprevenue? pp- ppCash ppreceived ppin ppadvance ppof ppdelivering ppa
ppproduct ppor ppperforming ppa ppservice.
List ppexamples ppof ppunearned pprevenue... pp- pp- ppInsurance ppcompanies
- ppMagazine ppPublishers
- ppApartment ppComplexes
- ppCollege ppfood ppservices
- ppProfessional ppsports/Theaters ppthat ppsell ppseason pptickets
What ppdoes ppthe ppdifference ppbetween ppthe pptotals ppof ppthe ppincome ppstatement
ppcolumns pprepresent?
What ppdoes ppthe ppdifference ppbetween ppthe ppbalance ppsheet ppcolumns pprepresent? pp- ppIS
ppDebit ppBal. pp& ppBS ppCredit ppBal. pp= ppNet ppIncome
IS ppCredit ppVal. pp& ppBS ppDebit ppBal. pp= ppNet ppLoss
A ppfirm ppis pppreparing ppto ppmake ppadjusting ppentries ppat ppthe ppend ppof ppthe ppaccounting
ppperiod. ppThe ppbalance ppof ppthe ppmerchandise ppinventory ppaccount ppis pp$100,000. ppIf
ppthe ppfirm ppis ppusing ppthe ppperpetual ppinventory ppsystem, ppwhat ppdoes ppthis ppbalance
pprepresent. pp- ppEnding ppInventory
