Book keeping, Finance And Accounting

Question: If the supplies account (assets), before adjustment on May 31, indicated a balance of $2,250, and the supplies on hand on May 31 totaled $950, the adjusting entry would be:
A
Debit supplies, $1,300; credit supplies expense, $1,300

B
Debit supplies, $950; credit supplies expense, $950

C
Debit supplies expense, $950; credit supplies, $950

D
Debit supplies expense, $1,300; credit supplies, $1,300

Note: answer not sure
1. Report
Question: The correct journal entry to reconcile an EFT payment of insurance expense is:
A
Debit Cash, Credit Interest Revenue

B
Debit Accounts Payable, Credit Cash

C
Debit Bank Charge Expense, Credit Cash

D
Debit Insurance Expense, Credit Cash

Note: answer not sure
1. Report
Question: If a customer is not paying their invoices, the best first step to encourage them to pay is:
A
Send them to collections immediately

B
Write them a letter and threaten to cut off their line of credit

C
Begin charging interest on their open balance

D
Send a statement with copies of the open invoices

Note: answer not sure
1. Report
Question: Lundstrom & Co. began making sales on credit during 20X1. The Co. used the direct write-off method for uncollectible accounts. A material amount of uncollectible accounts resulting from the sales made during 20X1 were written off during 20X2. What was the effect of this write-off on the net income for 20X1 and 20X2? 20X1 20X2
A
Overstate Overstate

B
Overstate Understate

C
Understate Overstate

D
Understate Understate

Note: answer not sure
1. Report
Question: Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, is likely to result in:
A
an increase in the average collection period

B
a decrease in bad debt losses

C
an increase in sales

D
higher profits

Note: answer not sure
1. Report
Question: The trial balance __________.
A
is a formal financial statement.

B
is used to prove that there are no errors in the journal or ledger.

C
provides a listing of every account in the chart of accounts.

D
provides a listing of the balance of each account in active use.

Note: answer not sure
1. Report
Question: Russell Merchandising Ltd. uses the perpetual inventory system. Which of the following statements would be correct?
A
When they record a sale, it should also debit inventory.

B
When they record a sale, it should also credit inventory.

C
When they record a sale, it should also credit cost of goods sold.

D
When they record a sale, it should also debit cost of goods available for sale.

Note: answer not sure
1. Report
Question: Using the following information, determine the adjusted book balance: cash account balance on the books $27,000, bank service charges $200, NSF check $2,000, checks outstanding $3,000, deposits in transit $1,000.
A
$24,800

B
$25,800

C
$25,000

D
None of these

Note: answer not sure
1. Report
Question: The Sales Day Book is best described as:
A
a book containing customers' accounts

B
a book containing real accounts

C
a list of credit sales

D
a part of the double entry system

Note: answer not sure
1. Report
Question: Why is the Accounts Receivable function important?
A
All companies have it; so it must be important

B
It is good to have someone people can call with invoice questions

C
It turns the receivables into cash

D
Sales would go down without an AR department

Note: answer not sure
1. Report

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Question: If the supplies account (assets), before adjustment on May 31, indicated a balance of $2,250, and the supplies on hand on May 31 totaled $950, the adjusting entry would be:

Question: The correct journal entry to reconcile an EFT payment of insurance expense is:

Question: If a customer is not paying their invoices, the best first step to encourage them to pay is:

Question: Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, is likely to result in:

Question: The trial balance __________.

Question: Russell Merchandising Ltd. uses the perpetual inventory system. Which of the following statements would be correct?

Question: Using the following information, determine the adjusted book balance: cash account balance on the books $27,000, bank service charges $200, NSF check $2,000, checks outstanding $3,000, deposits in transit $1,000.

Question: The Sales Day Book is best described as:

Question: Why is the Accounts Receivable function important?