Which financial statement shows Inventory?
A) balance sheet
B) income statement
C) statement of changes in shareholders' equity
D) statement of cash flows
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Q. 2) On a bank reconciliation, deposits that were not entered by the bank before the bank statement was prepared are known as
a. NSF deposits.
b. restrictive deposits.
c. deposits in transit.
d. unrecorded deposits.
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Q. 3) At December 31, 2010, McToil, Inc. owes its employees 20,000 for work performed in 2010. Payday is not until the first week in January 2011. What is the effect of the December 31, 2010 adjusting entry on the company's total liabilities?
A) increase
B) decrease
C) no effect
D) changed in a way that cannot be predicted
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Q. 4) Analyze each of the following transactions and determine the effect on the accounting equation.
1. Purchased three months' worth of prepaid advertising for 300.
2. Paid 500 cash on an account payable.
3. Paid 100 for supplies.
4. Performed 4,000 of services on account.
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Q. 5) The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be
a. Jan. 1 Merchandise Inventory
Cash 1,500
1,500
b. Jan. 1 Office Supplies
Cash 1,500
1,500
c. Jan. 1 Purchases
Accounts Payable 1,500
1,500
d. Jan. 1 Cash
Accounts Receivable 1,500
1,500
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Q. 6) Making a comparison between the cash balance in the accounting records and on the bank statement is called a bank reconciliation.
Indicate whether the statement is true or false
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