Question : 44.On April 1, 2016, a firm accepted a 3-month, 10 : 1168939

 

 

44.On April 1, 2016, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2016, is   

A. $30.

 

B. $60.

 

C. $150.

 

D. $180.

 

 

 

45.With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale   

A. on the date of the sale.

 

B. on the date the account is collected in full.

 

C. each time a payment on an account balance is received.

 

D. either on the date of the sale or when the amount of the sale is collected.

 

 

 

 

46.Accrued income is income that has been   

A. received but not earned.

 

B. earned but not received.

 

C. earned and received.

 

D. budgeted for the fiscal period.

 

 

 

 

47.Which of the following statements is correct?   

A. On the worksheet, the amount of the ending merchandise inventory is shown in the Income Statement Credit column in the account Income Summary and the Balance Sheet Debit column in the account Merchandise Inventory.

 

B. On the worksheet, the totals of the Income Statement columns should equal the totals of the Balance Sheet columns.

 

C. On the worksheet, if debits exceed credits in the Adjusted Trial Balance section, the difference represents a net loss.

 

D. All of these statements are correct.

 

 

 

 

48.If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a   

A. $900 debit.

 

B. $500 debit.

 

C. $500 credit.

 

D. $900 credit.

 

 

 

49.If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is   

A. $900 debit.

 

B. $500 debit.

 

C. $500 credit.

 

D. $900 credit.

 

 

 

50.If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a   

A. $900 debit.

 

B. $500 debit.

 

C. $500 credit.

 

D. $900 credit.

 

 

 

51.The net income for an accounting period appears on the worksheet in the   

A. Income Statement Debit column only.

 

B. Income Statement Credit column only.

 

C. Income Statement Credit and the Balance Sheet Debit columns.

 

D. Income Statement Debit and the Balance Sheet Credit columns.

 

 

 

 

52.The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two   

A. only the Income Statement columns.

 

B. Income Statement or Balance Sheet columns.

 

C. Balance Sheet and Income Statement Debit columns.

 

D. Balance Sheet and Income Statement Credit columns.

 

 

 

 

53.The ending merchandise inventory is recorded on the worksheet in the   

A. Income Statement Credit and the Balance Sheet Debit columns.

 

B. Income Statement Credit column only.

 

C. Balance Sheet Debit column only.

 

D. Income Statement Debit column only.