ACCT 2000 Lowe-Ardoin Latest 2025 Exam
Verified Q’s & Answers)
Both interest revenue and gains on sales would be included in what section of a multi-step
income statement? - ✔✔other revenues and gains
The Profit Margin Ratio may be calculated by dividing ______________________ by
___________________. - ✔✔net income; net sales
When a merchandise return is accepted by the seller, which two accounts are debited?
- ✔✔sales returns and allowances and inventory
Which account will have a zero balance after a company has journalized and posted closing
entries? - ✔✔service revenue
Deposits held by a bank are considered what type of account for the bank? - ✔✔liability
Electronic payments made out of a bank account are recorded by the bank with a __________.
- ✔✔debit
The return of an NSF check to the bank would show as a reconciling item for the bank or the
book? - ✔✔book
What account is always affected by bank reconciliation adjusting entries? - ✔✔cash
What are the only accounts that appear on the post-closing trial balance? - ✔✔permanent
, What account would be credited by the company to record interest earned on an account
from the bank? - ✔✔interest revenue
In a bank reconciliation, deposits in transit are: - ✔✔added to the bank balance
In a bank reconciliation, outstanding checks are: - ✔✔deducted from the bank balance
To record the adjusting entry for an NSF check received by the bank, a company would: -
✔✔debit accounts receivable
Why should a bank reconciliation be prepared? - ✔✔To explain any difference between
the depositor's balance per books and the balance per bank
Which type of accounting is approved by GAAP, cash or accrual basis? - ✔✔Accrual Basis
Adjusting entries ___________ involve cash. - ✔✔never
What are the two types of adjusting entries? - ✔✔deferrals and accruals
One side of the adjusting entry must come from the _____________ _____________ and the
one side must come from the ______________ ___________________. - ✔✔balance sheet;
income statement
Adjusting entries are necessary every time a company prepares a ______________
________________. - ✔✔Financial Statement
Which accounts are adjusted in deferral adjusting entries? - ✔✔prepaid expenses
and unearned revenue
Verified Q’s & Answers)
Both interest revenue and gains on sales would be included in what section of a multi-step
income statement? - ✔✔other revenues and gains
The Profit Margin Ratio may be calculated by dividing ______________________ by
___________________. - ✔✔net income; net sales
When a merchandise return is accepted by the seller, which two accounts are debited?
- ✔✔sales returns and allowances and inventory
Which account will have a zero balance after a company has journalized and posted closing
entries? - ✔✔service revenue
Deposits held by a bank are considered what type of account for the bank? - ✔✔liability
Electronic payments made out of a bank account are recorded by the bank with a __________.
- ✔✔debit
The return of an NSF check to the bank would show as a reconciling item for the bank or the
book? - ✔✔book
What account is always affected by bank reconciliation adjusting entries? - ✔✔cash
What are the only accounts that appear on the post-closing trial balance? - ✔✔permanent
, What account would be credited by the company to record interest earned on an account
from the bank? - ✔✔interest revenue
In a bank reconciliation, deposits in transit are: - ✔✔added to the bank balance
In a bank reconciliation, outstanding checks are: - ✔✔deducted from the bank balance
To record the adjusting entry for an NSF check received by the bank, a company would: -
✔✔debit accounts receivable
Why should a bank reconciliation be prepared? - ✔✔To explain any difference between
the depositor's balance per books and the balance per bank
Which type of accounting is approved by GAAP, cash or accrual basis? - ✔✔Accrual Basis
Adjusting entries ___________ involve cash. - ✔✔never
What are the two types of adjusting entries? - ✔✔deferrals and accruals
One side of the adjusting entry must come from the _____________ _____________ and the
one side must come from the ______________ ___________________. - ✔✔balance sheet;
income statement
Adjusting entries are necessary every time a company prepares a ______________
________________. - ✔✔Financial Statement
Which accounts are adjusted in deferral adjusting entries? - ✔✔prepaid expenses
and unearned revenue
