One of the weaknesses of the direct write-off method is that it:

a. understates accounts receivable on the balance sheet
b. violates the matching principle
c. is too difficult to use for many companies
d. is based on estimates

Which is the fourth amount section in a ten-column worksheet?

a.) income statement
b.) balance sheet
c.) adjusted trial balance
d.) adjustments

The first item appearing on the statement of owner's equity is

a. net income
b. the ending balance of owner's equity
c. owner withdrawals
d. the beginning balance of owner's equity

A statement that shows the updated balances of all general ledger accounts is called an/a?

a.) balance sheet
b) income summary
c.) trial balance
d) adjusted trial balance

Which one of the following accounts will not appear in a balance sheet?

a.) temporary account
b.) permanent account
c.) asset account
d.) owners equity account

Which one of the following entries are recorded at the end of a fiscal period to update the general ledger accounts?

a) closing
b) adjusting
c) reversing
d) posting

A land and building account is an example of an:

a) temporary account
b.) permanent account
c) liability account
d) expenses account

Novak Corp. does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $42718. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes?

a.$2418
b. $2563
c.$2410
d. It cannot be determined.

If an income summary amount in a worksheet is adjusted, the debit column represents a/an:

a) increase in the merchandise inventory
b) decrease in the merchandise inventory
c) opening balance of the merchandise inventory
d.) closing balance of the merchandise inventory

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $55000. If the balance of the Allowance for Doubtful Accounts is an$11000 debit before adjustment, what is the balance after adjustment?

a. $55000
b.$11000
c. $44000
d.$66000

The posting reference column of the journal provides a cross-reference between?

a) ledger and accounts
c) ledger and financial statement
b) journal and ledger
d) there is no cross reference

A chart of accounts does NOT include

a) assets
c) owners equity
b) liabilities
d) names of customers

Your CPA firm is auditing a client with a December 31, 2020 year-end. Your firm expects to complete the audit fieldwork on March 15, 2021. In practice, the letters of audit inquiry should be sent to the client's external legal counsel on approximately:

a. September 1, 2020
b. January 1, 2021
c. March 1, 2021
d. March 15, 2021

Which statement below is not a reason for a corporation to buy back its own stock.

a. for supporting the market price of the stock
b. bonus to employees
c. to increase the shares outstanding
d. resale to employees