ACCOUNTING FOR MERCHANDISIN G
5-1 Recording purchases of merchandise using a perpetual inventory system.
The following transactions were completed by the Dunn Company during May.
May 1 Purchased merchandise from Moore Co., $500, te
The Recording Process ANSWERS TO QUESTIONS
1. 2. 3. A T account has the following parts: (a) the title, (b) the left or debit side, and (c) the right or credit side. Disagree. The terms debit and credit mean left and right respectively. Jef
Completing the Accounting Cycle ANSWERS TO QUESTIONS
1. No. A worksheet is not a permanent accounting record. The use of a worksheet is an optional step in the accounting cycle. The worksheet is merely a device used to make it easier to pre
1. Ed Tresh has invested $400,000 in a privately held family corporation. The corporation
does not do well and must declare bankruptcy. What amount does Tresh stand to lose?
A) Up to his total investment of $400,000.
C) The $400,
1. Bonds that are subject to retirement at a stated dollar amount prior to maturity at the
option of the issuer are called
A) callable bonds.
B) early retirement bonds.
2. Investors who receive checks in their na
Accounting for Merchandising Operations ANSWERS TO QUESTIONS
1. (a) Disagree. The steps in the accounting cycle are the same for both a merchandising company and a service company. (b) The measurement of income is conceptually the same. In
Each ofthe items below must be considered in preparing a statement of cash ows for Baskerville Co. for the year ended December 31, 201?. For each item, state howI it should be shown in
the statement of cash ows for 201? and the indirect method is used.
1. As of December 31, 2010, Nilsen Industries had $2,000 of raw materials inventory. At the
beginning of 2010, there was $1,600 of materials on hand. During the year, the company
purchased $274,000 of materials; however it paid for only $2
1. A flexible budget
A) is prepared when management cannot agree on objectives for the company.
B) projects budget data for various levels of activity.
C) is only useful in controlling fixed costs.
D) cannot be used for evaluation purposes
1. A fixed cost is a cost which
A) varies in total with changes in the level of activity.
B) remains constant per unit with changes in the level of activity.
C) varies inversely in total with changes in the level of activity.
D) remains co
1. Horizontal analysis evaluates financial statement data
A) within a period of time.
B) over a period of time.
C) on a certain date.
D) as it may appear in the future.
2. Waters Department Store had net credit sales of $16,000,000 and cos
11-88 hhiM CFO.
330. Match the items below by entering the appropriate code letter in the space provided.
m w mrne
0.25 out of 0.25 points
The primary objective of the statement of cash flows is to show cash flows
and what type of cash flow it is.
0.25 out of 0.25 points
Major financing and investing activities sometimes d
LEGAL ENVIRONMENT OF BUSINESS Third Test Take Home Exam
DIRECTIONS: Answer each question thoroughly. If you need additional space,
use the back of the last page
1 a) Why did the law develop strict products liability?
Strict products lia
ECOllZ Macroeconomics Name
Test 3, Chapters 14 &15
1. Barter is the:
direct exchange of goods and services.
exchange of goods, but not services.
system that does not depend on a coincidence of wants.
system used in advanced ec
COMPLETING OF THE ACCOUNTING
4-1 Preparing adjusting entries, completing the worksheet, preparing the nancial
statements, closing entries and postclosing trial balance.
Roberta Day, M.D., a podiatrist, adjusts and closes the accounts a
THE RECORDING PROCESS
21 The rules of debits and credits.
a) Label each side of the T accounts as follows: 1. debit and credit, 2. increase
and decrease, and 3. normal balance.
Assets = Liabilities + Ca ital - Drawi
Adjusting the Accounts ANSWERS TO QUESTIONS
1. (a) Under the time period assumption, an accountant is required to determine the relevance of each business transaction to specific accounting periods. (b) An accounting time period of one year
Current Liabilities and Payroll Accounting ANSWERS TO QUESTIONS
1. Jill is not correct. A current liability is a debt that can reasonably be expected to be paid: (a) from existing current assets or through the creation of other current lia
Karen Vazquez Sandoval
Oct. 6, 2015
1. Corporation: A legal entity that is separate and distinct from its owners.
Corporations enjoy most of the rights and responsibilities that an individual
possesses; that is, a corporati