51.A reversing entry should not be made for an adjusting entry to record
A. the accrued salaries.
B. an accrued expense item that will involve future cash payments.
C. an accrued income item that will involve future cash receipts.
D. depreciation.
52.The entry to reverse the adjustment for accrued interest income consists of a debit to
A. Interest Income and a credit to Income Summary.
B. Interest Income and a credit to Interest Receivable.
C. Interest Income and a credit to Interest Expense.
D. Interest Receivable and a credit to Interest Income.
53.In the general journal, reversing entries are dated as of
A. the last day of the old fiscal period.
B. the first day of the new fiscal period.
C. any day during the month of the new fiscal period.
D. any time before the end of the fiscal period.
54.The entry to reverse the adjusting entry for accrued payroll taxes expense includes
A. a debit to Payroll Taxes Expense.
B. a debit to Employee Income Tax Payable.
C. a credit to Social Security Tax Payable and a credit to Medicare Tax Payable.
D. a debit to Social Security Tax Payable and a debit to Medicare Tax Payable.
55.A company reported gross profit of $85,000, total operating expenses of $40,000 and interest income of $2,500. What is the income from operations?
A. $47,500
B. $42,500
C. $40,000
D. $45,000
56.For the current fiscal year, Purchases were $166,000, Purchase Returns and Allowances were $3,000 and Freight In was $12,000. If the beginning merchandise inventory was $110,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:
A. $186,000
B. $116,000
C. $210,000
D. $216,000
57.Which of the following is not a selling expense:
A. Advertising Expense
B. Rent Expense
C. Sales Salaries Expense
D. Delivery Expense
58.Which of the following would not be classified as a Current Asset:
A. Equipment
B. Supplies
C. Accounts Receivable
D. Cash
59.Interest Expense is classified as a(n):
A. Administrative Expense
B. Selling Expense
C. Other Income
D. Other Expense
60.Which of the following is not a section on a Classified Balance Sheet:
A. Current Assets
B. Long-Term Liabilities
C. Selling Expenses
D. Plant and Equipment
61.Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:
A. Delivery Expense
B. Sales Salaries Expense
C. Insurance Expense
D. Advertising Expense
62.Cost of Goods Sold is classified as a(n):
A. Revenue account
B. Asset account
C. Expense account
D. Owner's Equity account
63.At the end of the year Stan Still Stationery Store had the following balances: Sales $580,000; Sales Discounts $2,540; Sales Returns and Allowances $14,280; Sales Salaries Expense $60,000. The Net Sales for the year are:
A. $565,720
B. $577,460
C. $563,180
D. $503,180
64.For the current fiscal year, Purchases were $245,000, Purchase Returns and Allowances were $8,600, Purchase Discounts were $2,200 and Freight In was $32,000. If the beginning merchandise inventory was $60,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:
A. $266,200
B. $281,200
C. $272,800
D. $251,200
