Final Exam Review ACCT 2101.docx - Final Exam Review ACCT...

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Final Exam Review ACCT 2101Exam 11.The best definition of assets is the (resources belonging to a company that have future benefit tothe company).2.Net income will result during a period when: (revenues exceed expenses).3.The accounting equation may be expressed as: (Assets= Liabilities + Stockholder Equity).4.Elston Company compiled the following financial information as of December 31, 2018: Revenues 140000, Common Stock 30000, Equipment 40000, Expenses 125000, Cash 35000, Dividends 10000, Supplies 5000, Accounts Payable 20000, Accounts receivable 15000, Retained Earnings 1/1/18 75000. Elston’s retained earnings on December 31, 2018 are: (80,000)5.Stockholder equity (includes retained earnings and common stock)6.Office equipment is classified on the balance sheet as (property, plant, and equipment)7.On a classified balance sheet, companies usually list current assets (in the order in which they are expected to be converted to cash)8.For 2018 Kuhland’s Corporation reported net income of $28000; net sales $400000; and average share outstanding 6000. There were no preferred stock dividends. What was the 2018 earnings per share? ($4.67)9.An intangible asset (derives its value from the rights and privileges it provides to the owner)10.On January 14, Decker industries purchased supplies of $500 on acct. The entry to record the purchase will include: (a debit to supplies and a credit to Accts payable)11.On July 7, 2018 Shireman Enterprises received cash $1400 for the services rendered. The entry to record this transaction will include (a debit to cash of $1400)12.A trial balance is a listing of (general ledger accts and balances)13.Using accrual accounting, expenses are recorded and reported only: (when they are incurred whether or not cash is paid)14.The Village Laundry Company purchased $6500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2000 on hand. The adjusting entry that should be made by the company on June 30 is:
15.Green Realty Company received a check doe $24000 on July 1 which represents a 6 month advance payment of a rent on a building it rents to a client. Unearned Rental Revenue was credited for the full $24000. Financial statements will be prepared on July 31. Green realty should make the following adjusting entry on July 31: (debit Unearned rental Revenue, $4000; credit Rental Revenue, $4000.
Exam 21.After gross profit is calculated, operating expenses are deducted to determine (operating income)2.In a perpetual inventory system, cost of goods sold is recorded (each time a sale occurs)3.Under a perpetual inventory system, acquisition of merchandise for resale is debited to (Merchandise Inventory Acct)4.The journal entry to record a return of merchandise purchased on acct under a perpetual inventory system would credit (Merchandise Inventory)5.If a purchaser using a perpetual inventory system pays the transportation costs, then the (Merchandise Inventory Acct is increased)6.A credit sale of $800 is made on April 25, terms2/10, net/30, on which a return of $50 is granted on April 28.

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