(Test Bank) Fundamental Accounting Principles (Vol. 1) Canadian Edition

Larson,Wild,Chiappetta, 17

Business

Test Bank

17th Edition

• $15.00 $50.00

---

Description

Test Bank for Fundamental Accounting Principles (Vol. 1) Canadian Edition, The downloadable file consists of 877 pages, and the total size of the file is 5.13 MB. Purchase now only for highly discounted price.

Author(s): Larson, Wild, Chiappetta

---

---

Study Note Preview

Version 1 1 APPENDIX 2: ALGO MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) Maxie's Game World sold games to a customer on credit for $2,700, terms 2/10, n/30 and the cost of the games was $1,800. When recording the sales transaction in its sales journal, Maxie ’s would enter: A) $1,800 in the Accounts Receivable Dr./Sales Cr. column and $2,700 in the Cost of Goods Sold Dr./Inven tory Cr. column. B) $2,700 in the Accounts Receivable Dr./Sales Cr. column and $1,800 in the Accounts Payable Dr./Purchases Cr. column. C) $2,700 in the Accounts Receivable Dr./Sales Cr. column and $2,700 in the Cash Cr. column. D) $2,700 in the Accoun ts Receivable Dr./Sales Cr. column and $1,800 in the Cost of Goods Sold Dr./Inventory Cr. column. E) $1,800 in the Accounts Receivable Dr./Sales Cr. column and $2,700 in the Other Accounts Dr. column. 2) Maxie's Game World sold games to a cu stomer on credit for $4,300, terms 1/10, n/30 and the cost of the games was $3,400. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie ’s would enter: A) $4,300 in the Cash Dr. colum n and $4,300 in the Accounts Receivable Cr. column. B) $4,257 in the Cash Dr. column and $4,257 in the Accounts Receivable Cr. column. C) $4,257 in the Cash Dr. column, $43 in the Sales Discount Dr. column and $4,300 in the Accounts Receivable Cr. colum n. D) $4,300 in the Accounts Receivable Dr./Sales Cr. column and $4,300 in the Cash Cr. column. E) $4,300 in the Cash Dr. column. $3,400 in the Sales Cr. column, and $3,400 in the Cost of Goods Sold Dr./Inventory Cr. column. 3) Wildlife Who lesale Supply sold birdseed to a retailer for $1,760, receiving cash at the time of sale. The cost of the birdseed was $1,270. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter: Version 1 2 A) $1,760 in the Ca sh Dr. column and $1,760 in the Accounts Receivable Cr. column. B) $1,270 in the Cash Dr. column and $1,270 in the Accounts Receivable Cr. column. C) $1,760 in the Cash Dr. column; $1,760 in the Sales Cr. column; and $1,270 in the Other Accounts Cr. col umn. D) $1,760 in the Accounts Receivable Dr. column, $1,760 in the Cash Cr. column; and $1,270 in the Cost of Goods Sold Dr./Inventory Cr. column. E) $1,760 in the Cash Dr. column; $1,760 in the Sales Cr. column; and $1,270 in the Cost of Goods Sold Dr. /Inventory Cr. column. 4) Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,700.When recording the purchase transaction in its purchases journal, Farthington would enter: A) $15,700 in the Inventory Dr. column and $15,700 in the Accounts Payable Cr. column. B) $15,700 in the Accounts Receivable Dr. column and $15,700 in the Accounts Payable Cr. column. C) $15,700 in the Inventory Dr. column, $15,386 in the Accounts Payable Cr. col umn, and $314 in the Discounts Lost Cr. column. D) $15,700 in the Cost of Goods Sold Dr. column and $15,700 in the Accounts Payable Cr. column. E) $15,700 in the Other Accounts Dr. column and $15,700 in the Inventory Cr. column. 5) Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 1/10, n/30 for $15,800. When recording the payment of the invoice within the discount period in its cash payments journal, Farthington would enter: A) $15,800 in the Cash Cr. column and $15,800 in the Inventory Dr. column. B) $15,800 in the Cash Cr. column and $15,800 in the Accounts Payable Dr. column. C) $15,800 in the Inventory Cr. column; $15,642 in the Accounts Payable Dr. column; and $158 in the Inventory Cr. column. D) $15,642 in the Accounts Payable Dr. column and $15,642 in the Cash Cr. column. E) $15,800 in the Accounts Payable Dr. column; $15,642 in the Cash Cr. column; and $158 in the Inventory Cr. column. Version 1 3 6) Wexim Toys sold merchandise t o a customer on credit, terms 1/10, n/30 for $11,500. Three days later, the customer returned $2,200 of the merchandise. When recording the return transaction, Wexim Toys would record: A) $2,200 in the Accounts Payable Cr. column and $2,200 in the Inventory Dr. column of the purchases journal. B) Debit Sales Returns and Allowances $2,200 and credit Accounts Receivable $2,200 in the general journal. C) $2,200 in the Cash Dr. column and $2,200 in the Inventory Cr. column in the cash receipts journ al. D) Debit Cash $2,200 and credit Inventory $2,200 in the general journal. E) $2,200 in the Accounts Payable Dr. column and $2,200 in the Cash Cr. column of the cash payments journal. 7) At the end of the year, the total accounts receivab le ledger for a company equals $74,000 and the total accounts payable ledger equals $34,500. If there are no errors for this company, one would expect that: A) The Accounts Payable account will equal the total of all balances owed from its customer accounts. B) The total credit sales for the period equal $39,500. C) The Accounts Receivable account will equal the total of all balances owed to its supplier accounts. D) The Accounts Receivable account will equal the total of all balances owed from its customer accounts. E) The cash received by the company during the period equals $39,500. 8) Rosenow Equipment sold merchandise to a customer on credit for $15,000, terms 2/10, n/30. The cost of the merchandise to Rosenow was $8,500. If t he customer pays 25 days after the sale occurred, what amount would be entered into the Accounts Receivable Cr. column in its cash receipts journal?Version 1 4 A) $6,500. B) $8,330. C) $8,500. D) $14,700. E) $15,000. 9) Gupta Accessories sol d merchandise to a customer on credit for $5,000, terms 2/10, n/30. The cost of the merchandise to Gupta was originally $2,800. If the customer pays 8 days after the sale occurred, what amount would be entered into the Sales Discount Dr. column in its cash receipts journal? A) $44. B) $56. C) $100. D) $2,200. E) $5,000. 10) Rosenow Equipment sold merchandise to a customer on credit for $29,000, terms 2/10, n/30. The cost of the merchandise to Rosenow was $15,500. If the customer pa ys7 days after the sale occurred, what amount would be entered into the Accounts Receivable Cr. column in its cash receipts journal? A) $13,500. B) $15,190. C) $15,500. D) $28,420. E) $29,000. 11) Harry ’s Home & Garden originally purchased merchandise from a supplier at a cost of $2,700. Harry ’s sold that same merchandise to a customer on credit for $5,200, terms 1/10, n/30. If the customer makes payment to Harry ’s9 days after the sale occurred, what amount would be entered into t he Cash Dr. column in Harry ’s cash receipts journal?Version 1 5 A) $52. B) $2,673. C) $2,700. D) $5,148. E) $5,200. 12) Harry ’s Home & Garden originally purchased merchandise from a supplier at a cost of $3,300. Harry ’s sold that same merch andise to a customer on credit on March 1 for $6,400, terms 1/10, n/30. If the customer makes payment to Harry ’s on March 18th, what amount would be entered into the Cash Dr. column in Harry ’s cash receipts journal? A) $64. B) $3,267. C) $3,300. D) $6,336. E) $6,400. 13) Harry ’s Home & Garden originally purchased merchandise from a supplier at a cost of $3,200. Harry ’s sold that same merchandise to a customer for $6,200 cash. What amount would be entered into the Cost of Good Sold Dr. / Inventory Cr. column in Harry ’s cash receipts journal for the sale? A) $64. B) $3,136. C) $3,200. D) $6,076. E) $6,200. 14) Dave ’s Digital sold merchandise to a customer on credit for $1,500, terms 2/10, n/30. Dave ’s had originally purchased the merchandise from a supplier at a cost of $700. When recording the sales transaction in its sales journal, Dave ’s would enter what amount into its Accounts Receivable Dr. / Sales Cr. column?Version 1 6 A) $686. B) $700. C) $800. D) $1,470. E) $1,500. 15) Dave ’s Digital sold merchandise to a customer on credit for $1,500, terms 2/10, n/30. Dave ’s had originally purchased the merchandise from a supplier at a cost of $700. When recording the sales transaction in its sales journal, Dave ’s would enter what amount into its Cost of Goods Sold Dr. / Inventory Cr. column? A) $686. B) $700. C) $800. D) $1,470. E) $1,500. 16) Arctic Adventures purchases merchandise from a supplier on credit, terms 1/10, n/30 for an amount of $6,150. Artic hopes to eventually sell the merchandise to a customer at a price of $11,300. When recording the purchase transaction in its purchases journal, what amount would Arctic enter into its Inventory Dr. column? A) $0. B) $5,150. C) $6,150. D) $11,187. E) $11,300. 17) Retail World purchases inventory of $490 and office supplies of $190 from a supplier on credit, terms 1/10, n/30. When recording the purchase transaction in its purchases j ournal, what amount would the company enter into its Accounts Payable Cr. column?Version 1 7 A) $0. B) $200. C) $188. D) $500. E) $680. 18) Retail World purchases inventory of $450 and office supplies of $150 from a supplier on credit, term s 2/10, n/30. When recording the purchase transaction in its purchases journal, what amount would the company enter into its Inventory Dr. column? A) $0. B) $438. C) $450. D) $588. E) $600. 19) McNeil Music purchases merchandise from a supplier on credit, terms 2/10, n/30 for $18,640. When recording the payment of the invoice within the discount period in its cash payments journal, how much would McNeil enter into the Cash Cr. column? A) $0. B) $17,894. C) $18,267. D) $18,610. E) $18,640. 20) McNeil Music purchases merchandise from a supplier on credit, terms 1/10, n/30 for $18,700. When recording the payment of the invoice within the discount period in its cash payments journal, how much would McNeil ent er into the Accounts Payable Dr. column?Version 1 8 A) $0. B) $18,326. C) $18,513. D) $18,670. E) $18,700. 21) Joy’s Fabrics purchases merchandise from a supplier on December 1st on credit, terms 2/10, n/30 for $2,100. Joy ’s hopes to eventu ally sell that merchandise to a customer at a sales price of $3,800. When recording the payment of the invoice on December 9th in its cash payments journal, how much would Joy ’s enter in the Accounts Payable Dr. column? A) $1,700. B) $2,058. C) $2,100. D) $3,724. E) $3,800. 22) Joy’s Fabrics purchases merchandise from a supplier on December 1st on credit, terms 2/10, n/30 for $1,600. Joy ’s hopes to eventually sell that merchandise to a customer at a sales price of $2,800. When rec ording the payment of the invoice on December 10th in its cash payments journal, how much would Joy ’s enter in the Cash Cr. column? A) $1,200. B) $1,568. C) $1,600. D) $2,744. E) $2,800. 23) Crystal Cutlery purchases merchandise from a supplier on March 1st on credit, terms 1/10, n/30 for $1,100. Their plan is to eventually sell that merchandise to a customer at a sales price of $2,100. When recording the payment of the invoice on March 21st in its cash payments journal, how much would Crystal enter in the Cash Cr. column?Version 1 9 A) $1,000. B) $1,089. C) $1,100. D) $2,079. E) $2,100. Version 1 10 Answer Key Test name: Appendix II_Algo 1) D 2) C 3) E 4) A 5) E 6) B 7) D 8) E 9) C 10) E 11) D 12) E 13) C 14) E 15) B 16) C 17) E 18) C 19) C 20) E 21) C 22) B 23) C Version 1 1 APPENDIX 2 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Accounting information systems collect and process data about transactions and events, organize them in useful forms, and communicate results to decision makers. ⊚ true ⊚ false 2) The relevance principle prescribes that an accounting i nformation system report all information gathered, even if it is not useful for decision making ⊚ true ⊚ false 3) Control, competency, compatibility, flexibility and cost -benefit are the five basic principles of accounting information systems. ⊚ true ⊚ false 4) Internal controls include policies to protect company assets and ensure compliance with laws and regulations. ⊚ true ⊚ false 5) The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers. ⊚ true ⊚ false 6) The compatibility principle prescribes that an accounting information system report useful, understandable, and timely information for decision making.Version 1 2 ⊚ true ⊚ false 7) The cost -benefit principle prescribes that the benefits from an activity in an accounting information system sh ould outweigh the costs of that activity. ⊚ true ⊚ false 8) A management information system (MIS) is designed to collect and process data within an organization for the purpose of providing users with information. ⊚ true ⊚ false 9) Source documents are a group of components that collect and process raw financial data into timely, accurate, relevant, and cost -effective information to meet the purposes of internal and external users. ⊚ true ⊚ false 10) Computer hardware is the programs that direct the operations of computer hardware. ⊚ true ⊚ false 11) The accounting components used for operating and financial controls are developed based on the journal and general ledger systems of a company. ⊚ true ⊚ false 12) Enterprise -application software is used primarily for journal entries.Version 1 3 ⊚ true ⊚ false 13) A special journal is any journal used for recording and posting transactions of a s imilar type. ⊚ true ⊚ false 14) A sales journal is used for recording cash sales. ⊚ true ⊚ false 15) Input devices convert data on source documents to a form usable by the accounting system. ⊚ true ⊚ false 16) Data analytics is the process of analyzing data to identify meaningful relations and trends ⊚ true ⊚ false 17) The purchases journal is used to record all credit purchases, including those for inventory. ⊚ true ⊚ false 18) Most transactions for merchandising businesses fall into four groups: sales on credit, purchases on credit, cash receipts, and cash disbursements. ⊚ true ⊚ false Version 1 4 19) The general journal is used for tran sactions not covered by special journals and for adjusting, closing, and correcting entries ⊚ true ⊚ false 20) Purchases using cash are recorded in the cash payments journal ⊚ true ⊚ false 21) The sales journal is called a columnar journal, which is any journal with more than one column. ⊚ true ⊚ false 22) An information processor includes journals, ledgers, working papers, and posting procedures. ⊚ true ⊚ false 23) A subsidiary ledger is a listing of individual accounts with a common characteristic. ⊚ true ⊚ false 24) Two common subsidiary ledgers are cash receipts and cash disbursements. ⊚ true ⊚ false