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1) Which financial statement is used to determine cash generated from operations?
2) In terms of sequence, in what order must the four basic financial statements be prepared?
3) In classifying transactions, which of the following is true in regard to assets?
4) An increase in an expense account must be
5) ABC Corporation issues 100 shares of $1 par common stock at $5 per share, which of the
following is the correct journal entry?
6) In the first month of operations, the total of the debit entries to the cash account amounted
to $1,400 and the total of the credit entries to the cash account amounted to $600. The cash
account has a
7) Which ledger contains control accounts?
8) Smith is a customer of ABC Corporation. Smith typically purchases merchandise from
ABC on account. Which ledger would ABC use to keep track of the details of Smith’s
account?
9) Under the cash basis of accounting,
10) Under the accrual basis of accounting,

11) The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2
and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies
indicated only $2,000 on hand. The adjusting entry that should be made by the company on
June 30 is
12) Greese Company purchased office supplies costing $4,000 and debited Office Supplies
for the full amount. At the end of the accounting period, a physical count of office supplies
revealed $1,100 still on hand. The appropriate adjusting journal entry to be made at the end of
the period would be
13) Based on the account balance below, what is the total of the debit and credit columns of
the adjusted trial balance?
14) An adjusted trial balance
15) Given the following adjusted trial balance, net income for the year is:
16) Given the following adjusted trial balance, what will be the totals for the debit and credit
columns of the post-closing trial balance?
Debit Credit
Cash $1,562
Accounts receivable 2,098
Inventory 3,124
Prepaid rent 86
Property, plant, & equipment 300
Accumulated depreciation $52
Accounts payable 82
Unearned revenue 172
Common stock 206
Retained earnings 6,610
Service revenue 218
Interest revenue 56
Salary expense 160
Travel expense 66
Totals $7,396 $7,396

17) Given the following adjusted trial balance:
After closing entries have been posted, the balance in retained earnings will be
18) Net income is recorded on the work sheet under the
19) At the beginning of the year, Uptown Athletic had an inventory of $400,000. During the
year, the company purchased goods costing $1,500,000. If Uptown Athletic reported ending
inventory of $600,000 and sales of $2,000,000, their cost of goods sold and gross profit rate
would be
20) During the year, Sarah’s Pet Shop’s merchandise inventory decreased by $30,000. If the
company’s cost of goods sold for the year was $450,000, purchases would have been
21) At the beginning of the year, Wildcat Athletic had an inventory of $200,000. During the
year, the company purchased goods costing $700,000. If Wildcat Athletic reported ending
inventory of $300,000 and sales of $1,000,000, their cost of goods sold and gross profit rate
would be
22) The entry to record of sale of $900 with terms of 2/10, n/30 will include a
23) Dobler Company uses a periodic inventory system. Details for the inventory account for
the
Units Per unit price Total
Balance, 1/1/2012 200 $5.00 $1,000
Purchase, 1/15/2012 100 5.3 530
Purchase, 1/28/2012 100 5.5 550
An end of the month (1/31/2012), inventory showed that 140 units were on hand. If the
company uses LIFO, what is the value of the ending inventory?

24) The difference between ending inventory using LIFO and ending inventory using FIFO
is referred to as
25) A consistent application of an inventory costing method enhances
26) The accountant at Patton Company has determined that income before income taxes
amounted to $11,000 using the FIFO costing assumption. If the income tax rate is 30% and
the amount of income taxes paid would be $300 greater if the LIFO assumption were used,
what would be the amount of income before taxes under the LIFO assumption?
27) A very small company would have the most difficulty in implementing which of the
following internal control activities?
28) A system of internal control
29) The custodian of a company asset should
30) The Sarbanes Oxley Act (2002) applies to