Accounting 202: MCQ Quiz Exam!

11 Questions | Total Attempts: 629

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Accounting 202: MCQ Quiz Exam! - Quiz


Questions and Answers
  • 1. 
    The journal entry needed to record the receipt of a bill from the company’s marketing agency would include a:
    • A. 

      Debit to manufacturing overhead

    • B. 

      Debit to marketing expenses

    • C. 

      Debit to work in process inventory

    • D. 

      Credit to work in process inventory

  • 2. 
    The journal entry needed to record the completion of a job includes a:
    • A. 

      Debit to cost of goods sold

    • B. 

      Debit to finished goods inventory

    • C. 

      Debit to work in process inventory

    • D. 

      Debit to raw materials inventory

  • 3. 
    Under a perpetual inventory system, the journal entry needed to record the sale of a job includes a:
    • A. 

      Debit to sales revenue and credit to accounts receivable

    • B. 

      Debit to cost of goods sold and credit to finished goods inventory

    • C. 

      Debit to finished goods inventory and credit to cost of goods sold

    • D. 

      Debit to cost of goods sold and credit to sales revenue

  • 4. 
    Which of the following would be debited to record the costs of indirect labor?
    • A. 

      Manufacturing overhead

    • B. 

      Work in process inventory

    • C. 

      Finished goods inventory

    • D. 

      Wages payable

  • 5. 
    Which of the following would be debited to record direct labor costs incurred?
    • A. 

      Finished goods inventory

    • B. 

      Manufacturing overhead

    • C. 

      Wages payable

    • D. 

      Work in process inventory

  • 6. 
    Which of the following would be debited to record the requisition of direct materials?
    • A. 

      Finished goods inventory

    • B. 

      Raw materials inventory

    • C. 

      Work in process inventory

    • D. 

      Cost of goods manufactured

  • 7. 
    The entry to record the purchase of raw materials on account using a job costing system would include a:
    • A. 

      Credit to work in process inventory

    • B. 

      Debit to accounts payable

    • C. 

      Debit to raw materials inventory

    • D. 

      Debit to work in process inventory

  • 8. 
    When job costing is used as a service firm
    • A. 

      Indirect costs are traced to client jobs

    • B. 

      Direct costs are allocated to client jobs

    • C. 

      All costs are allocated to client jobs

    • D. 

      Indirect costs are allocated to client jobs

  • 9. 
    When job costing is used at a service firm, the bill to the client shows:
    • A. 

      Actual direct cost of providing the service

    • B. 

      The allocation of indirect costs

    • C. 

      The profit on the job

    • D. 

      The billing rate and hours spent on the job

  • 10. 
    The hourly price charged to clients for professional labor is called the
    • A. 

      Billing rate.

    • B. 

      Salary rate.

    • C. 

      Wage rate.

    • D. 

      Job rate.

  • 11. 
    Service firms develop a predetermined rate for some costs.  What is this rate called?
    • A. 

      Labor rate

    • B. 

      Indirect cost allocation rate

    • C. 

      Direct cost rate

    • D. 

      Hourly cost rate

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