Merchandise inventory that is smaller than needed ____.
What is may decrease net income.
100
Interest income earned on a 4-month, 12% note for $1,000.00 on its maturity date is ____.
What is $40.00
100
After a reversing entry for accrued interest income is posted, Interest Income ____.
What is has a debit balance
100
At the end of a fiscal period, each expense that has been incurred but not paid should be debited to an appropriate
What is revenue
100
Using the price of merchandise purchased first to calculate the cost of merchandise sold first is the ____.
What is lifo method
200
A merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand is a
What is periodic inventory
200
The entry to journalize the adjusting entry for accrued interest income is ____.
What is debit Interest Receivable; credit Interest Income
200
After the entries are made to record the receipt of principal and interest for a note receivable accepted in a previous fiscal period, Interest Income ____.
What is has a credit balance
200
Expenses incurred in one fiscal period but not paid until a later fiscal period are called ____.
What is accrued expenses
200
Using the same inventory method for all fiscal periods is an application of the accounting concept ____.
What is Accounting Cycle
300
"Taking an inventory" is characteristic of the ____.
What is periodic method
300
Interest on a note is generally paid on the ____.
What is note's maturity date
300
The adjusting entry for accrued interest expense is ____.
What is debit Interest Expense; credit Interest Payable
300
Accrued interest expense is a payable that is classified as ____.
What is a liability
300
Estimating inventory by using the previous years' percentage of gross profit on operations is the ____ method
What is gross profit
400
A form used to show the kind of merchandise, quantity received, quantity sold, and balance on hand is ____.
What is a stock record
400
The entry to journalize the closing entry for interest income is ____.
What is debit Interest Income; credit Income Summary
400
A reversing entry for accrued interest income results in a debit to ____.
What is Interest Receivable
400
Received a 180-day, 10% note receivable for $600.00 on November 1. Assuming the fiscal year ends December 31, the amount of accrued interest income recorded December 31 will be ____.
What is $10.00
400
The person to whom the amount of a note is payable is ____.
What is the payee of the note
500
A separate stock record is prepared ____.
What is for each kind of merchandise on hand
500
The entry to journalize the reversing entry for accrued interest income is ____.
What is debit Interest Income; credit Interest Receivable
500
An adjusting entry normally is reversed if the adjusting entry creates a balance in ____.
What is an asset or liability account
500
The source document for recording cash received from signing a note payable is a ____.