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UMUC ACCT 220 Quiz 2 Latest

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UMUC ACCT 220 Quiz 2 Latest

UMUC ACCT 220 Quiz 2 Latest

ACCT220

UMUC ACCT 220 Quiz 2 Latest

UMUC ACCT 220 Quiz 2 Latest

Question 1 One advantage to using a perpetual inventory system is that the company never has to physically count the inventory.

True

False

Question 2 The weighted-average inventory method will likely result in neither the highest nor the lowest ending inventory.

True

False

Question 3 When calculating accounts receivable turnover, a company would prefer a higher number rather than a lower number (within reason).

True

False

Question 4 When performing a bank reconciliation, checks outstanding are added back to the bank balance.

True

False

Question 5 Usually the quick ratio will be a lower number than the current ratio.

True

False

Multiple Choice Select the best answer for each of the following questions.

Question 6 The bad-debt method that uses the accounts receivable aging report is _______________.

the percentage-of-sales method

the bad-debt expense method

the direct write-off method

the percentage-of-receivables method

Question 7 When it is determined that too much money has been set aside for uncollectible accounts, we will _______________.

credit reserve for uncollectible accounts

debit reserve for uncollectible accounts

credit cash

debit accounts receivable

Question 8 A customer whose account was previously written off unexpectedly pays us. If we are using the allowance method we would _______________.

debit bad-debt expense and credit cash

debit cash and credit bad-debt expense

debit reserve for uncollectible accounts and credit cash

debit accounts receivable and credit allowance for uncollectible accounts AND debit cash and credit accounts receivable

Question 9 When a retailer accepts a bank card (VISA or MasterCard), they will make what entry for the day’s receipts?

debit accounts receivable and credit sales

debit accounts receivable; credit sales, and credit “credit card expense”

debit cash and credit sales

debit cash and debit “credit card expense”; credit sales

Question 10 The company prepares, but does not yet pay, its first payroll of the new year. Salaries total $10,000 and 7.65% is withheld from paychecks for FICA tax. Ignore all other payroll deductions. The journal entries will be _______________.

debit wage expense $10,000 and credit wages payable 10,000; debit payroll tax expense for $1,530 and credit FICA tax payable $1,530

debit wage expense $10,000 and credit wages payable $10,000; debit payroll tax expense for $765 and credit FICA tax payable $765

debit wage expense $10,000 and debit payroll tax expense $765; credit wages payable $9,235 and credit FICA tax payable $1,530

debit wage expense $10,000; credit wages payable $8,470 and FICA tax payable $1,530

Question 11 A company buys a $10,000 bond at 102 as an investment. The correct entry is _______________.

debit investment in bonds and credit cash for $9,800

credit investment in bonds and debit cash for $10,200

debit investment in bonds and credit cash for $10,200

credit investment in bonds and debit cash for $9,800

Question 12 A company issues bonds having a stated value of $100,000 for $102,500. At maturity, the company will _______________.

debit bonds payable for $100,000

credit bonds payable for $102,500

credit bonds payable for $100,000

debit bonds payable for $102,500

Question 13 A company uses the percentage-of-receivables method for establishing the bad-debt reserve. They want the reserve balance to equal 0.5% of debts 30 days old or less, 2% of debts aged 31 to 60 days, and 4% of debts aged over 60 days. An aging report shows $780,000 relating to the past month, $232,600 relating to the prior month, and $89,200 relating to more than two months ago. The balance in the reserve account before adjustment is $10,175. What is the adjusting journal entry?

debit bad-debt expense, credit allowance for bad debts $1,945

debit bad-debt expense, credit accounts receivable $1,945

debit allowance for bad debts, credit bad-debt expense $1,945

debit bad-debt expense, credit allowance for bad debts $12,120

Question 14 A company is closing out the accounting period. The inventory balance at the beginning of the period was $222,750, and at the end of the period it was $215,600. Purchases of goods for resale during the period equaled $682,500. What was the cost of goods sold total?

$905,250

$682,500

$689,650

$675,350

Question 15 The following transactions during the month of January: 1/5 bought 10 units at $11.00 each; 1/8 bought 15 units at $11.25 each; 1/15 sold 8 units for $16 each; 1/22 bought 10 units at $11.50 each and sold 12 units for $16.50 each. The ending inventory is $693.75. What inventory costing method is the company using?

LIFO – periodic

LIFO – perpetual

FIFO

Weighted average

Short Answer

Prepare the following journal entries. Dates and descriptions are not required.

Question 16 What is the difference between the periodic-inventory and perpetual-inventory methods?

 

UMUC ACCT 220 Quiz 2 Latest

UMUC ACCT 220 Quiz 2 Latest

ABS,AC,ACC,ACCT,ACT,ADJ,AH,AJS,AMP,ANT,ART,BA,BAM,BBA,BCOM,BIO,BIOS,BIS,BMGT,BPA,BSA,BSE,BSHS,BSOP,BUS,BUSN,CARD,CEIS,CHEM,CIS,CIT,CJA,CJS,CMC,CMGT,COLL,COM,COMM,COMP,CPN1,CRJ,CRMJ,CRT,CS,CWV,DBM,EBUS,ECE,ECET,ECN,ECO, ECOM,ECON,ECT,EDU,EED,EMM,ENG,ENGL,ENT,ENTR,ESE,ETH,ETHC,FIN,FIS,FP,GB,GBM,GED,GEN,GENERALQUESTIONS,GLG,GM,GSCM,HCA,HCS,HHS,HIS,HIST,HLT,HOSP,HPE,HRM,HSA,HSM,HTM,HTT,HUM,HUMN,IFSM,INFT,INT,IS,ISCOM,IT,ITB,JADM,JUS,JWI, LAS,LAW,LAWS,LDR,LEG,LIT,LTC,MA,MAT,MATH,MGMT,MGT,MIS,MKT,MKTG,MTH,NETW,NR,NRS,NSCI,NTC,NUR,NURS,OI,OMM,OPS,ORG,PA,PAD,PCN,PHI,PHL,PHYS,PM,POL,POLI,POS,PPA,PRG,PROJ,PSC,PSY,PSYC,PSYCH,QNT,QRB,RDG,REL,RELI,RES,SBE,SCI,SEC,SOC,SOCS,SPE,SRM,STAT,STR,SYM,TCH,UNV,WEB,XACC,XBIS,XCOM,XECO,XMGT

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