Reference no: EM132251416

Questions -

Q1. Which of the following types of accounts have a normal debit balance?

assets and liabilities

liabilities and expenses

revenues and liabilities

expenses and dividends

Q2. On December 31, we determined that $6,850 in revenue had been earned. We have not received any cash to date for this job and have not billed the client. What account would we debit when we record this adjusting entry in the general journal?

service revenue

unearned fees

accounts receivable

retained earnings

Q3. Our unearned revenue account had a credit balance of $5,000 before adjusting entries were recorded. On December 31, we determined that $3,000 of the $5,000 had been earned during the current year. What account and amount would we debit when we record this adjusting entry in the general journal?

unearned revenue, $2,000

service revenue, $2,000

unearned revenue, $3,000

service revenue, $3,000

Q4. The balance in our office supplies account on January 1 was $10,000. On January 31, our supplies on hand totaled $2,000. What account and amount would we credit when we record the adjusting entry for office supplies on January 31?

office supplies expense, $2,000

office supplies, $2,000

office supplies, $8,000

office supplies expense, $8,000

Q5. Annual depreciation on equipment amounted to $27,950 for the current year. What account would we credit when we record this adjusting entry in the general journal?

depreciation expense

equipment

cash

accumulated depreciation, equipment

Q6. What is gross profit for a merchandiser calculated as?

net sales minus cost of goods sold

gross sales minus cost of goods sold

net sales minus merchandise inventory

gross sales minus merchandise inventory

Q7. On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 3/10, n/30. What is the amount we would credit to cash if we pay this invoice on August 9?

$1,000

$997

$990

$970

Q8. Our company purchases $4,000 worth of merchandise inventory on credit with the terms 2/10, n/30. Transportation costs were an additional $200. Our company returned $300 worth of merchandise. What is the total cost of this merchandise if our company paid the invoice within the discount period?

$3,426

$3,826

$4,018

$4,410

Q9. Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,300 for $6,600 to a customer on account. The terms of the sale were 2/10, n/30. What account and amount would we debit to record the sales revenue for this transaction?

sales revenue, $6,600

accounts receivable, $6,600

cost of goods sold, $3,300

merchandise inventory, $3,300