Posted: April 24th, 2016

Which of these account balances will not appear the same on the balance sheet?

7. At March 1, I. Repo Inc. reported a balance in Supplies of $200. During March, the company purchased supplies for $950 and consumed supplies of $800. If no adjusting entry is made for supplies:

stockholders’ equity will be overstated by $800.

expenses will be understated by $950.

assets will be understated by $350.

net income will be understated by $800.

8. The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:

contra asset.

prepayment.

asset.

accrued.

9. Unearned revenues are:

received and recorded as liabilities before they are earned.

earned and recorded as liabilities before they are received.

earned but not yet received or recorded.

earned and already received and recorded.

10. Adjusting entries affect at least:

one revenue and one expense account.

one asset and one liability account.

one revenue and one balance sheet account.

one income statement account and one balance sheet account.

11. At March 1, 2011, Candy Inc. had supplies on hand of $1,500. During the month, Candy purchased supplies of $2,900 and used supplies of $1,800. The March 31 balance sheet should report what balance in the supplies account?

$1,500

$2,600

$1,800

$2,900

12. The following accounts show balances on the adjusted trial balance. Which of these account balances will not appear the same on the balance sheet?

Retained earnings

Accounts receivable

Common stock

Notes payable

13. American Importers reports net income of $40,000 and cost of goods sold of $360,000. If the company’s gross profit rate was 40%, net sales were:

$600,000.

$900,000.

$940,000.

$660,000.

14. A merchandiser will earn an operating income of exactly $0 when

net sales equals cost of goods sold.

cost of goods sold equals gross margin.

operating expenses equal net sales.

gross profit equals operating expenses.