Quiz 2 Practice
Question 1
On Friday of each week, Cobolt Ltd pays its factory personnel weekly wages amounting to $2,500 for a
five-day work week. During January, pay day falls on Friday 28, 2019. For the month end accounts for
January, the amount to be accrued for wages would be:
a. $500
b. $1,000
c. $1,500
d. $2,500
e. No adjustment is necessary.
Question 2
The bookkeeper recorded wages for the month as a debit to the Income account rather than as a debit
to Wages Expense. This error will result in:
a. Understated equity at the end of the period
b. Understated assets at the end of the period
c. Overstated net profit for the period
d. No effect on net profit of the period
e. None of the above
Question 3
Double entry means:
a. For every transaction two accounts are affected
b. For every transaction one debit and one credit is recorded
c. Two entries are made in every account.
d. For every transaction total debit equals total credits
e. None of the above
Question 4
Hunter Company purchased inventory with an invoice price of $4,000 and credit terms of 2/10, n/30.
Before settling their account, Hunter received credit from their supplier for inventory returned $200.
What is the amount Hunter Company will pay for this inventory if they settle their account within the
discount period?
a. a.$4,000
b. b.$3,920
c. c.$3,800
d. d.$3,724
e. None of the above
, Question 5
For the 2019 year, the following data were taken from the accounting records.
$
Sales 900,000
Sales Returns and Allowances 30,000
Purchases 500,000
Purchase Returns and Allowances 8,000
Discount Received 4,000
Freight-in 2,000
Inventory (1/7/18) 90,000
Inventory (30/6/19) 130,000
Net Purchases are:
a. a.$870,000
b. b.$500,000
c. c.$492,000
d. d.$488,000
e. None of the above
Question 6
End-of-Year records for a business show:
$
Sales 50,000
Cost of sales 20,000
Selling expenses 4,000
Revenue received in advance 7,000
Depreciation expense 8,000
Discount received 2,500
Discount allowed 2,800
Rent revenue 6,500
Selling expenses 42
During the closing process the credit to the Profit or Loss Summary account would be:
a. $59,000
b. $66,000
c. $36,500
d. $39,000
e. $50,000
Revenue include = sales + discount received + Rent revenue
Question 1
On Friday of each week, Cobolt Ltd pays its factory personnel weekly wages amounting to $2,500 for a
five-day work week. During January, pay day falls on Friday 28, 2019. For the month end accounts for
January, the amount to be accrued for wages would be:
a. $500
b. $1,000
c. $1,500
d. $2,500
e. No adjustment is necessary.
Question 2
The bookkeeper recorded wages for the month as a debit to the Income account rather than as a debit
to Wages Expense. This error will result in:
a. Understated equity at the end of the period
b. Understated assets at the end of the period
c. Overstated net profit for the period
d. No effect on net profit of the period
e. None of the above
Question 3
Double entry means:
a. For every transaction two accounts are affected
b. For every transaction one debit and one credit is recorded
c. Two entries are made in every account.
d. For every transaction total debit equals total credits
e. None of the above
Question 4
Hunter Company purchased inventory with an invoice price of $4,000 and credit terms of 2/10, n/30.
Before settling their account, Hunter received credit from their supplier for inventory returned $200.
What is the amount Hunter Company will pay for this inventory if they settle their account within the
discount period?
a. a.$4,000
b. b.$3,920
c. c.$3,800
d. d.$3,724
e. None of the above
, Question 5
For the 2019 year, the following data were taken from the accounting records.
$
Sales 900,000
Sales Returns and Allowances 30,000
Purchases 500,000
Purchase Returns and Allowances 8,000
Discount Received 4,000
Freight-in 2,000
Inventory (1/7/18) 90,000
Inventory (30/6/19) 130,000
Net Purchases are:
a. a.$870,000
b. b.$500,000
c. c.$492,000
d. d.$488,000
e. None of the above
Question 6
End-of-Year records for a business show:
$
Sales 50,000
Cost of sales 20,000
Selling expenses 4,000
Revenue received in advance 7,000
Depreciation expense 8,000
Discount received 2,500
Discount allowed 2,800
Rent revenue 6,500
Selling expenses 42
During the closing process the credit to the Profit or Loss Summary account would be:
a. $59,000
b. $66,000
c. $36,500
d. $39,000
e. $50,000
Revenue include = sales + discount received + Rent revenue
