151. Under the perpetual inventory system, all purchases of merchandise are debited to the account entitled   A. Merchandise Inventory B. Cost of Merchandise Sold C. Cost of Merchandise Available for Sale D. Purchases 152. When the perpetual inventory system is used, the inventory sold is debited to   A. supplies expense B. cost of merchandise sold C. merchandise inventory D. sales 153. Under a perpetual inventory system   A. accounting records continuously disclose the amount […]

    141.Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan’s June bank statement shows $18,361 on deposit in the bank. Ryan’s comparison of the bank statement to its cash account revealed the following:  Deposit in transit$1,450 Outstanding checks$837 Additionally, a $29 check written and recorded by the company correctly was recorded by the […]

  58.In a company’s bank reconciliation, an outstanding check is a check that:    A. is guaranteed for payment by the bank. B. has been issued by the company but has not been presented to the bank for payment. C. has been presented to the bank for payment but has not been reported on the bank statement. D. has been written for an amount that is greater than the balance […]

    105. The amount of cash to be reported on the balance sheet at June 30 is the  A. total of the cash column in the cash receipts journal as of June 30B. adjusted balance appearing in the bank reconciliation for June 30C. total of the cash column in the cash payments journal as of June 30D. balance as of June 30 on the bank statement   106. Which of the following would […]

121.Use this adjusted trial balance to answer the following question.   Dan’s Marina Adjusted Trial Balance December 31, 20×7 Cash $ 2,500   Accounts Receivable 3,500   Supplies 1,500   Prepaid Insurance 2,500   Dock 12,000   Accumulated Depreciation–Dock   $ 3,000 Accounts Payable   6,000 Common Stock   10,000 Dividends 4,000   Boat Rentals   17,000 Depreciation Expense–Dock 1,000   Wages Expense 6,500   […]

  108.              A donor gave $ 1,000,000 to a private not-for-profit organization to be held in endowment.  In addition, the governing board permanently designated $ 500,000 to the endowment.  In the Statement of Financial Position, how should these amounts be classified? A)Permanently Restricted: $1,500,000; Unrestricted:  $      – 0 – B)Permanently Restricted: $1,000,000; Unrestricted: $   500,000 C)Permanently Restricted: $   500,000; Unrestricted: $1,000,000 D)Permanently Restricted: $     –  […]

  21) Calculate the allocation of packaged price Game A in Package 3, using selling prices as the base. A) $34.20 B) $30.00 C) $25.00 D) $22.80 E) $19.00 22) Calculate the revenue allocation for Game A in Package 1, using physical units as the base. A) $12.57 B) $13.97 C) $20.84 D) $22.00 E) $23.16   23) Calculate the allocation of packaged price for […]

      194.General Co. entered into the following transactions involving short-term notes payable.On May 14, General purchased $40,000 merchandise from Steller Co., terms are 2/15, n/30. General uses the perpetual inventory system. On May 29, General replaced the May 14 account payable with a 60-day, $36,000 note bearing 8% annual along with paying $4,000 in cash. On July 28, General paid the amount due […]

      Multiple Choice Questions   176. The statement of cash flows is designed to assist users in assessing each of the following, except:  A. The ability of a company to remain liquid. B. The major sources of cash receipts during the period.  The company’s profitability. D. The reasons why net cash flow from operating activities differ from net income.   177. Which of the following is not included […]

  117. Parson Services Corporation was organized on January 1, Year 8. The unadjusted trial balance on December 31, Year 8 after recording transactions that occurred during Year 8 is as follows.  Parson Services CorporationUnadjusted Trial BalanceDecember 31, Year 8 Cash$125,000 Fees Receivable112,000 Notes Receivable115,000 Office Supplies Inventory11,800 Prepaid Insurance12,200 Furniture and Equipment155,000 Accumulated Depreciation0 Accounts Payable$113,000 Common Stock365,000 Fee Revenues195,000 Rent Expense19,500 Office Salaries Expense […]