MCQ Accounting

Morgana Film Editing LLC’s bookkeeper records receipts from cash sales of $9,500  incorrectly in the cash receipts journal as $5,900.  This item would be included on the bank reconciliation as a(n)

Question 2 options:

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers’ AR subsidiary ledger of Trang &Company CPA’s indicates doubtful accounts of $15,000.  Which of the following entries records the proper provision for doubtful accounts?

Question 3 options:

Brielle Mortgage Services  has in its Allowance for Doubtful Account a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales.  If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts by Brielle  is

Question 4 options:

Brielle Mortgage Services  adjusts  and closes at the end of the fiscal year  resulting in a balance of $450,000 in their Accounts Receivable and Allowance for Doubtful Accounts has a balance of $25,000.  What is the net realizable value of the accounts receivable for Brielle?

Question 5 options:

Chesapeake Foods has a 60-day, 10% note for $8,000, dated April 15,that it has  received from a customer on account.  The face value of the note is

Question 6 options:

Manglore Sweet Treats has a 90-day, 12% note for $10,000, dated May 1,that it has  received from customer on account.  The maturity value of the note is

Question 7 options:

On November 1, Dr. Jakob Fletcher PA.  accepted a 3-month note receivable as payment for services provided to Thao Company.  The terms of the note were $8,000 face value and 6% interest. Dr. Fletcher closes his books at December 31 and does not use reversing entries.  On February 1, the journal entry to record the collection of the note should include a credit to   

Question 8 options:

   Shamina Home Designs has inventory data for an item for November are

Nov.  1  Inventory.........20 units at $20

         4  Sold................. 10 units

       10  Purchased.........30 units at $21

       17  Sold................. 20 units

       30  Purchased.........10 units at $22

 Using the periodic system, costing by the first-in, first-out method, what is the cost of the merchandise sold in November  for Shamina?

Question 9 options:

Shamina Home Designs has inventory data for an item for November are

Nov.   1  Inventory..... 20 units at $20

          4  Sold............. 10 units

        10  Purchased.... 30 units at $21

        17  Sold............. 20 units

        30  Purchased.... 10 units at $22

 Using the periodic system, costing by the last-in, first-out method, what is the cost of the merchandise sold  in November for Shamina?

Question 10 options:

    Shamina Home Designs has the following lots of a particular commodity  available for sale during the year

Beginning inventory....... 10 units at $50

First purchase................ 25 units at $53

Second purchase............ 30 units at $54

Third purchase............... 15 units at $60

Question 11 options:

Shamina Home Designs has the following lots of a particular commodity available for sale during the year:

Beginning inventory........ 10 units at $60

First purchase................ 25 units at $63

Second purchase............ 30 units at $64

Third purchase............... 10 units at $70

Shamina uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the last-in, first-out method for Shamina?

Question 12 options:

Shamina Home Designs has the following lots of a particular commodity available for sale during the year:

Beginning inventory....... 10 units at $61

First purchase................ 25 units at $63

Second purchase............ 30 units at $64

Third purchase............... 15 units at $73

Shamina uses the periodic system and there are 20 units of the commodity on hand at the end of the year.  What is the amount of the inventory at the end of the year according to the average cost method for Shamina?

Question 13 options:

If Norman Geological Services estimates the rate of gross profit at 40%, what is the estimated cost of the merchandise inventory on June 30 for Norman, based on the following data?

Question 14 options:

 Zarena  Restaurant Group has a  fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset for Zarena?

Question 15 options:

     Sadie Publishers has a fixed asset with a cost of $42,000 and accumulated depreciation of $38,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $5,000, the cost basis of the new asset for Sadie is

Question 16 options:

Bharat Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 years. Due to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years for Bharat  is

Question 17 options:

Bombay Tourism Services has a machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method.  What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

Question 18 options:

Bombay Tourism Services has an equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?

Question 19 options:

Bombay Tourism Services has a  machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining-balance method at double the straight-line rate?

Question 20 options: