CPB / BookKeeping Bookkeeping 2

Question 1

Which inventory costing method assumes the most recently purchased items are sold first?

Accepted Answer

LIFO

Answer

FIFO

Answer

Weighted Average

Answer

Specific Identification

Question 2

A company issues a $5,000 credit memo to a customer for returned goods. Which account is debited?

Accepted Answer

Sales Returns and Allowances

Answer

Accounts Receivable

Answer

Cash

Answer

Inventory

Question 3

What is the normal balance of the Unearned Revenue account?

Accepted Answer

Credit

Answer

Debit

Answer

Zero

Answer

Either debit or credit

Question 4

Under the accrual basis, when should revenue be recognized for services rendered on credit?

Accepted Answer

When services are performed

Answer

When cash is collected

Answer

When the invoice is mailed

Answer

When the contract is signed

Question 5

Which of the following is NOT a component of the accounting equation?

Accepted Answer

Revenue

Answer

Assets

Answer

Liabilities

Answer

Owner's Equity

Question 6

A petty cash fund is established for $300. After reimbursement expenses total $245, the journal entry to replenish includes a credit to:

Accepted Answer

Cash

Answer

Petty Cash

Answer

Accounts Payable

Answer

Office Expense

Question 7

Which depreciation method applies a constant rate to the declining book value of an asset?

Accepted Answer

Double-declining balance

Answer

Straight-line

Answer

Units of production

Answer

Sum-of-the-years'-digits