Exit Assignment 0 of 25 Concepts completed correct Feedback Your Answer A system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transaction is received or paid is known as Accrual basis accounting. Blank 1 Correct Answer Blank 1: accrual Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) Terms of Use (https://www.mheducation.com/terms-use.html#connect2) 6 of 25 Concepts completed Your Answer correct When using a worksheet to record adjustments, the following column headings are used: statement of owners' equity adjustments general ledger chart of accounts adjusted trial balance trial balance balance sheet income statement Correct Answer adjustments adjusted trial balance trial balance balance sheet income statement Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- Exit Assignment 0 of 25 Concepts completed correct Feedback Your Answer During the year, a company had net credit sales of $100,000; past experience indicates that 0.5 percent of these sales, or $500, should result in uncollectible accounts. The entry to record this adjustment will include a debit to the ______ account in the amount of $500. uncollectible accounts expense accounts receivable Reason: no specific accounts receivable balance has been identified yet sales allowance for doubtful accounts Reason: this account will be credited Correct Answer uncollectible accounts expense Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) Terms of Use (https://www.mheducation.com/terms-use.html#connect2) Exit Assignment 0 of 25 Concepts completed correct Feedback Your Answer What account is debited for the purchase of merchandise inventory? Purchases Merchandise Inventory Reason: The Purchases account is used to record purchases of Merchandise. At the end of the period, an inventory is taken and the proper amount is transferred to the Merchandise Inventory account. Cost of Goods Sold Correct Answer Purchases Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) Terms of Use (https://www.mheducation.com/terms-use.html#connect2) Exit Assignment 0 of 25 Concepts completed correct A form used to list the volume and type of goods a firm has in stock is called a(n) inventory . sheet Blank 1 Feedback Your Answer Blank 2 Correct Answer Blank 1: inventory Blank 2: sheet Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) Terms of Use (https://www.mheducation.com/terms-use.html#connect2) Exit Assignment 1 of 25 Concepts completed correct Feedback Your Answer The goal of the _____ basis of accounting is to match revenues and expenses for the applicable period, regardless of when the cash related to the transaction is received or paid. tax accrual cash Reason: cash basis records expenses when cash is paid and revenue when cash is received Correct Answer accrual Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) Terms of Use (https://www.mheducation.com/terms-use.html#connect2) 1 of 25 Concepts completed Your Answer correct Merchandise Inventory, before adjustment, has a balance of $1,000. The newly counted inventory balance is $1,900. The journal entry to adjust for inventory, and insert the new balance, will include which of the following entries: debit to merchandise inventory for $1,900 credit to income summary for $1,900 debit to income summary for $1,900 credit to merchandise inventory for $1,900 Correct Answer debit to merchandise inventory for $1,900 credit to income summary for $1,900 Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 1 of 25 Concepts completed Your Answer correct When using a worksheet to record adjustments, which columns are added to compute the adjusted trial balance: adjustments general ledger trial balance chart of accounts Correct Answer adjustments trial balance Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 2 of 25 Concepts completed Your Answer correct During the year, a company had net credit sales of $100,000; past experience indicates that 1% of these sales, or $1,000, should result in uncollectible accounts. The entry to record this adjustment will include a credit to the ______ account in the amount of $1,000. accounts receivable Reason: no specific accounts receivable balance has been identified yet sales uncollectible accounts expense Reason: this account will be debited allowance for doubtful accounts Correct Answer allowance for doubtful accounts Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 2 of 25 Concepts completed Your Answer correct The Allowance for Doubtful Accounts account has a normal (debit/credit) credit balance. Blank 1 Correct Answer Blank 1: credit Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 3 of 25 Concepts completed Your Answer correct Based on an inventory count, the ______ inventory is debited to Merchandise Inventory and credited to Income Summary. beginning balance Reason: The ending balance, based on an inventory count, is transferred to the Merchandise Inventory account. average balance Reason: The ending balance, based on an inventory count, is transferred to the Merchandise Inventory account. ending balance Correct Answer ending balance Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 3 of 25 Concepts completed Your Answer correct A company has identified that Slow Delivery Inc.'s accounts receivable balance of $100 is unlikely to be collected. The company will write-off Slow Delivery's balance due against the ___________ account. sales allowance for doubtful accounts uncollectible accounts expense Reason: the expense is recognized at the end of the year based on an estimate; this account is not adjusted when a specific account is identified as uncollectible Correct Answer allowance for doubtful accounts Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 4 of 25 Concepts completed Your Answer correct A form used to list the volume and type of goods a firm has in stock is called a(n) _______. worksheet general ledger inventory sheet Correct Answer inventory sheet Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 4 of 25 Concepts completed Your Answer incorrect What account is credited to record the estimated uncollectible accounts? Uncollectible Accounts Expense Reason: Allowance for Doubtful Accounts is credited to record the estimated uncollectible accounts. Allowance for Doubtful Accounts Accounts Receivable Reason: Allowance for Doubtful Accounts is credited to record the estimated uncollectible accounts. Correct Answer Allowance for Doubtful Accounts Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 5 of 25 Concepts completed Your Answer correct Merchandise Inventory, before adjustment, has a balance of $500. The newly counted inventory balance is $900. The journal entry to adjust for inventory, and remove the original balance, will include which of the following entries: debit to merchandise inventory for $500 Reason: the adjusting entry will first remove the original balance by crediting merchandise inventory, then it will increase the account with a debit for the new balance debit to income summary for $500 credit to merchandise inventory for $500 credit to income summary for $500 Correct Answer debit to income summary for $500 credit to merchandise inventory for $500 Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 5 of 25 Concepts completed Your Answer correct All property, plant, and equipment is depreciated, except: land building vehicles equipment Correct Answer land Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 6 of 25 Concepts completed Your Answer correct Depreciation is: the cost of property, plant, and equipment recognized at the time of purchase the process of gradually transferring the acquisition cost of property, plant, and equipment costs to an expense account reduction of the value of property, plant, and equipment to reflect the current resale value Correct Answer the process of gradually transferring the acquisition cost of property, plant, and equipment costs to an expense account Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 7 of 25 Concepts completed Your Answer correct The Allowance for Doubtful Accounts account is a ______ account and has a normal ______ balance. asset; debit liability; credit contra-asset; credit contra-liability; debit Correct Answer contra-asset; credit Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 7 of 25 Concepts completed Your Answer correct At December 31, a company determines that depreciation for buildings is $15,000. The entry to record this adjustment will include which of the following entries: a credit to building a debit to accumulated depreciation - building a debit to depreciation expense - building a credit to accumulated depreciation - building a debit to building Correct Answer a debit to depreciation expense - building a credit to accumulated depreciation - building Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms- 8 of 25 Concepts completed Your Answer correct When a specific account is determined to be uncollectible, under the allowance method, the journal entry will include a credit to Allowance for Doubtful Accounts Reason: The Allowance for Doubtful Accounts will be debited. debit to Accounts Receivable Reason: The accounts receivable account will be credited to reduce it. debit to Allowance for Doubtful Accounts credit to Accounts Receivable Correct Answer debit to Allowance for Doubtful Accounts credit to Accounts Receivable Need help? Review these concept resources. Read About the Concept Next Question © 2020 McGraw-Hill Education. All Rights Reserved. Reading Privacy (https://www.mheducation.com/privacy.html) use.html#connect2) Terms of Use (https://www.mheducation.com/terms-
