KEY Final Review

KEY Final Review - Final Review This review goes over...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Final Review This review goes over chapters 11 and 13 in some detail as well as some general concepts from the first 10 chapters. This is NOT a comprehensive review and you will need to study each chapter individually. Approximately 50% of the final will be over chapters 1 – 10 and the other 50% Chapter 11 Exercises: 1, 2, 3, 4, 5, 9, 10 Chapter 11 Problems: 5B Chapter 13 Exercises: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 Chapter 13 Problems: None 1. T /F Adjusting entries are made to ensure the revenue recognition principle and matching principle are followed. 2. T/ F A general journal is a T Account with more detail 3. T/ F The matching principle requires that the total dollar amount of debits in a journal entry equal the total dollar of credits. 4. T/ F The accrual of interest revenue will include a debit to cash. 5. T/ F If the journal entry is a debit or credit to cost of goods sold you know the company is using the period inventory method. 6. T /F Revenue recognition principle dictates that revenue be recognized in the period earned. 7. T /F The role of the income summary account is to close temporary accounts into owner’s capital. (excluding owner’s drawings!!) 8. T/ F A trial balance is created after all adjusting entries are complete. 9. T/ F A balance sheet represents the financial situation of a company for a given period of time. 10. T/ F The CEO is an example of an external user. 11. T /F When all temporary accounts have been closed to income summary the value in income summary will be equal to net income. (excluding owner’s drawings!!)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
12. T/ F The cost principle dictates that an item be recorded on the balance sheet for the amount it would cost someone to buy the item from you (fair market value). 13. T/ F Adjusting entries are created after the financial statements are made. 14. T /F Inventory turnover is net sales/average accounts receivable. 15. T /F Bad debt expense is an example of a contra asset. 16. T /F When depleting natural resources the declining balance method is used. 17. T/ F If there is a credit balance in income summary after all temporary accounts have been closed the company has had a net loss for the year. 18. T /F The monetary unit assumption states that qualities that help your company, like good management, should be translated into dollar values so they can be placed on the balance sheet. 19. T/ F Debit means decrease. 20. T /F The normal balance for supplies is a debit. 21. T/ F In a period of decreasing prices FIFO will show higher net income than LIFO 22. T/ F Outstanding checks should be adjusted to the balance per book. 23. T/
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 10

KEY Final Review - Final Review This review goes over...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online