西财练习

Financial accounting exercise

一、Please choose the best response

1. Which of the following statement is not true ? ( )

A.investing activities relate to the investment by owners into the business.

B.paying dividens is an example of investing activity.

C.operating activities are the most important type of business activity.

D.managers must take decisions about operating ,investing,and financing activities.

2.Tray company paid $2850 on account. The effect of this transaction on the accounting equation is to ( )

A.decrease assets and decrease owners’ equity

B.increase liabilities and decrease owners’ equity

C.have no effect on total assets

D.decrease assets and decrease liabilities

3.an adjusting entry could contain all of the following except ( )

A.a debit to unearned revenue

B.a credit to cash

C.a debit to interest payable

D.a credit to salary payable

4.Refer to the following Table. What is Reed Company’s gross profit percentage (rounded ) for the year, assuming that ending inventory totaled $685? ( )

Consider the following data for Reed Company for current year:

Units Units Cost Total

Beginning inventory 55 $10 $550

Purchase February 4 22 12 264

Purchase May 15 20 13 260

Purchase October 48 15 720

Sales during the year ,84 units @$30 each

A、56%

B、27%

C、40%

D、44%

5.Which of the following reflect the balances of prepayment accounts prior to adjustment?( )

A、Balance sheet accounts are overstated and income statement accounts are understated.

B、Balance sheet accounts are overstated and income statement accounts are overstated.

C、Balance sheet accounts are understated and income statement accounts are overstated.

D、Balance sheet accounts are overstated and income statement accounts are understated.

https://www.360docs.net/doc/829777226.html, accounts receivable is calculated as ( )

A.sales less sales discount

B.accounts receivable plus the allowance for uncollectible accounts

C.accounts receivable less the allowance fot uncollectible accounts

D.accounts receivable less the uncollectible accounts expense

7.during the period of rising prices, the inventory method yields the highest net income and the lowest ending Inventory value ,respectively ,will be ( )

A.LIFO and FIFO

B.weighted average method

C.LIFO and LIFO

D.FIFO and LIFO

8、Which of these accounts has a normal credit balance ( )

A、Supplies expense

B、Service revenue

C、Equipment

D、prepaid insurance

9、The ending cash account balance is $57600.During the pperiod ,cash receipts equal $124300.if the cash payments during the period total $135100,then the beginning cash amount must have ( )

A、$68400

B、$46800

C、$181900

D、Cannot be determined from the information given.

10.On November 1,20x1,the Jernigan Company paid $4,800 for one –year insurance police .On December 31,20x1,the adjusting entry would include ( )

A、a debit to insurance expense ,$4800.

B、a credit to insurance payable,$800.

C、a credit to prepaid insurance,$800

D、a debit to insurance expense ,$4000

二、Please choose the multiple answers for each question

1.which of these are an liability account ( )

A.note payable

B.cost of goods sold

C. account payable

D.unearned revenue

2.which of these transactions have effect on total asset ? ( )

A.accrued interest revenue at the end of accounting period

B.paid interest expense

C.purchasing equipment on account

D.paid expense in advance

3.which of the equation are true? ( )

A.ending retained earnings=beginning retained earnings + revenues-expenses-dividens

B.gross profit =net sales – cost of goods sold

C.current ratio=total asset ÷ total liabilities

D.days’ sales in average accounts receivable = average accounts receivable÷sales revenue×365

4.Which of the following arethe characteristic of internal control ( )

A.safeguard assets

B.encourage adherence to company policies

C.promote operational efficiency

D.separation of duties

5.When the allowance method is used ,the entry to write off a customer’s account ( )

A、has no effect on uncollectible-account expense.

B、has no effect on net accounts receivable

C、decreases accounts receivable

D、increases the balance of the allowance for uncollectible accounts.

三、Fill in the blanks with accounting vocabularies.

1. are the economic resource of a business that are expected to be of benefit in the future.

2.Accrual accounting is more complex and more complete than accounting.

3.To ensure accuracy of the financial records, the firm’s accountant must explain the reasons for the difference between the firm’s records and the bank statement figures on a certain date. The result of this process is a

document called the .

4. are expenses that are paid in advance and will be used up in the near future.therefore, they are assets,not expenses,because they provided a future beneft for the owner.

5.A company’s, sometimes called its statement of financial position,reports three main categories of items: assets , liabilities, and owners’ equity .

四、Stewart Cor has the following business transactions during the month of December ,Please make entry for each transactions (explanation is not required) and prepare the trial balance.(25’)

Dec1.Purchased office supplies for cash $100

Dec3.Performed service on credit for $5000

Dec6.Recorded depreciation for equipment is $1000

Dec10.Sold merchandise to a manufacture, the invoice price was $11,000 ,cost of goods sold was $8000.

Dec19.Manufacture paid on account form Dec 10.

Dec20.Recorded unpaid three days salaries ,The salaries of $10,000 for the five-day workweek.

Dec21.Recorded unbilled and uncollected revenue of $17,000

Dec22. Paid the three days’salaries.

Dec25.Received Wart. Cor subscription$3000.

Dec30.Collected $600 form client for the services rented before