6-10 final examTake Test

School: Jefferson Community and Technical College - Course: ART MISC - Subject: Accounting

Take Test: Final Exam 6-10 Test Information Description Instructions MultipleAttemptsNot allowed. This test can only be taken once. ForceCompletionThis test can be saved and resumed later. Your answers are saved automatically. Question Completion Status: QUESTION 1 1.Merchandising transactions are separated into two categories: purchases and sales. True False 1 points QUESTION 2 1.Which company is an example of a merchandising company? Walmart Joe's taxes lawyer office Physician 2 points QUESTION 3 1.A perpectual inventory system is automatically recorded_______ At the end of the month every time a sale occurs at the end of the operating cycle never 2 points QUESTION 4 1.A company purchases product for their electronic store. The purchase made on June 1 included 20 electronic packages at a cost of $550 each. How would you write this entry assuming that this was a cash purchase. Cash 11,000 Merchandise inventory 11,000

Electronic package 11,000 merchandise inventory 11,000 Merchandise Inventory 11,000 Cash 11,000 none of the above 2 points QUESTION 5 1.Sold 3500 of merchandise on credit (cost of 2000), with terms 2/10, n/30, and invoice dated January 6. Record the transaction. Jan 6 Accounts Receivable 3430 Sales 3430 Jan 6 Cost of Goods Sold 2000 Merchandise Inventory 2000 Jan 6 Merchandise sold 2000 cash 2000 Jan 6 Accounts payable 3500 cash 3500 Jan 6 Accounts Receivable 3500 Sales 3500 Jan 6 Cost of Goods Sold 3500 Merchandise Inventory 3500 Jan 6 Accounts Receivable 3500 Sales 3500 Jan 6 Cost of Goods Sold 2000 Merchandise Inventory 2000 3 points QUESTION 6 1.The term FOB stands for______

"future of business" "free on Board" "freight on board" "freight out business" 2 points QUESTION 7 1.What is the purpose an accounting system? Without an elaborate accounting system, a business does not meet IRS standards. An accounting system is the methods and procedures for collecting, classifying, summarizing, and reporting a business's financial and operating system. A good accounting system helps a business person become wealthy. Accountants need to set up a complicated accounting system to keep themselves in work. 2 points QUESTION 8 1.What specific components should a AIS need to suit a typical company? inputting; storing; processing; aggregating: presenting and storing Inputting, processing and storing finding; analyzing; processing; and storing none of the above 2 points QUESTION 9 1.The receipt of cash from any source is recorded in a ____. general journal cash receipts journal purchase journal revenue journal 2 points QUESTION 10 1.The sales journal is used to record______. cash sales on account debit transactions credit cards 2 points

QUESTION 11 1.We record a sale on account that involves sales tax in which journal? cash disbursement journal sales journal cash receipts journal purchase journal 2 points QUESTION 12 1.What are the four main special journals. cash, receipts, AR, AP cash receipts; sales, general, purchase Accounts receivable; Accounts payable; general ledger; Sales Only the general journal 2 points QUESTION 13 1.What are theperceived elements thatneed to be present for workplace fraud to occur? motive, preconception, understanding incentive, opportunity, rationalization identity, work, cash people, motive, preconception 2 points QUESTION 14 1.The importance of internal control is to protect against all of the following EXCEPT integrity of assets reliable accounting information financial reporting owner 2 points QUESTION 15 1.__________are the systems used by an organization to manage risk and diminish the occurrence of fraud. Internal Controls assessments

Operational activities informational programs 2 points QUESTION 16 1.Petty cash is used for large purchases. True False 2 points QUESTION 17 1.What is the purpose of the bank reconciliation? because the company need to file this document to explain and document and differences between the company and the bank it's a state requirement None of these are correct 2 points QUESTION 18 1.What item on the bank statement that may differ from the company's financial records. NSF check interest earned outstanding checks service charge 2 points QUESTION 19 1.The adjusting entry for a bad debt expense has a debit and credit to what account. Bad debt Expense Allowance for doubtful accounts allowance for doubtful account bad debt expense Account payable bad debt expense none of these 2 points QUESTION 20 1.Accounts receivable is classified on the balance sheet as a

current asset current liability noncurrent asset noncurrent liability 2 points QUESTION 21 1.Revenue can be recognized when all of the following criterias are met EXCEPT There is credible evidence that an arrangement exists. Goods have been delivered or services have been performed. The selling price or fee to the buyer is fixed or can be reasonably determined. All of these are correct 2 points QUESTION 22 1.______governs recognition for publicly traded companies. FASB GAAP SEC recognition is not govern for publicly traded companies 2 points QUESTION 23 1.Bad debts are recorded on financial statements as bad debt expenses unearned revenue write offs 2 points QUESTION 24 1.The lower-of-cost-or-market method can be applied to each item of inventory each major class or category of inventory total inventory as a whole all of these choices are correct