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GB 518 Unit 3 Midterm Quiz To Purchase This Material Click below Link FOR MORE CLASSES VISIT

GB 518 Quiz 3

GB518 Financial Accounting Principles and Analysis 1. Question : Which of the following elements are found on the income statement? Cash Accounts Receivable Common Stock Retained Earnings Salaries Expense

Question 2. Question : Fast-Forward had cash inflows from operations of $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: $40,500 increase $40,500 decrease $134,500 decrease $134,000 increase

Question 3.

Question :

A debit is:

An increase in an account The right-hand side of a T-account A decrease in an account The left-hand side of a T-account An increase to a liability account

Question 4. Question : Balance Sheet?

Which of the following elements are found on the

Service Revenue Net Income Operating Activities Utilities Expense Retained Earnings

Question 5.

Question :

A credit is used to record:

An increase in an expense account An increase in an asset account An increase in an unearned revenue account A decrease in a revenue account A decrease to retained earnings

Question 6. Question : Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include: Assets increase by $75,000 and expenses increase by $75,000

Assets increase by $75,000 and expenses decrease by $75,000 Liabilities increase by $75,000 and expenses decrease by $75,000 Assets decrease by $75,000 and expenses decrease by $75,000 Assets increase by $75,000 and liabilities increase by $75,000

Question 7. Question : credit balance is:

Of the following accounts, the one that normally has a

Cash Office Equipment Sales Salaries Payable Dividends Sales Salaries Expense

Question 8.

Question :

The primary objective of financial accounting is:

To serve the decision-making needs of internal users To provide financial statements to help external users analyze and interpret an organization's activities To monitor and control company activities To provide information on both the costs and benefits of managing products and services To know what, when and how much to produce

Question 9.

Question :

The debt ratio is used:

To measure the amount of equity relative to the expenses To reflect the risk associated with a company's debts Only by banks when a business applies for a loan

To determine how much debt a firm should pay off

Question 10. Question : The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the: Going-concern principle Cost principle Revenue recognition principle Objectivity principle Business entity principle

Question 11.

Question :

Creditors' claims on the assets of a company are called:

Net losses Expenses Revenues Equity Liabilities

Question 12.

Question :

An example of a financing activity is:

Buying office supplies Obtaining a long-term loan Buying office equipment Selling inventory Buying land

Question 13. Question : A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000 and purchased for $137,000. The land should be recorded in the purchaser's books at: $95,000 $137,000 $138,500 $140,000 $150,000

Question 14.

Question :

Prepaid expenses are:

Payments made for products and services that do not ever expire Classified as liabilities on the balance sheet Decreases in retained earnings Assets that represent prepayments of future expenses

Question 15. Question : A company has twice as much owner's equity as it does liabilities. If total liabilities are $50,000, what amounts of assets are owned by the company? $50,000 $100,000 $150,000 $200,000

Question 16.

Question :

The main purpose of adjusting entries is to:

Record external transactions and events

Record internal transactions and events Recognize assets purchased during the period Recognize debts paid during the period Correct errors

Question 17.

Question :

Which of the following statements is incorrect?

An income statement reports revenues earned less expenses incurred An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments Interim financial reports can be based on one-month or threemonth accounting periods Property, plant and equipment are referred to as plant assets

Question 18. Question : On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: Debit Prepaid Insurance, $1,800; credit Cash, $1,800 Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440 Debit Prepaid Insurance, $360; credit Insurance Expense, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440

Question 19. Question : A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: Debit Unpaid Salaries $600 and credit Salaries Payable $600

Debit Salaries Expense $400 and credit Salaries Payable $400 Debit Salaries Expense $600 and credit Salaries Payable $600 Debit Salaries Payable $400 and credit Salaries Expense $400

Question 20. Question : Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance? Cash $ 6,754 Dividends $ 2,000 Accounts receivable $ 13,733 Consulting fees earned $ 13,718 Office supplies $ 2,625 Rent expense $ 3,673 Land $ 37,153 Salaries expense $ 6,642 Office equipment $ 14,535 Telephone expense $ 560 Accounts payable $ 6,463 Miscellaneous expense $ 280 Common stock $ 54,490 Retained Earnings ?

$0 $13,718 $13,155 $13,284

Question 21. Question : statements as:

Unearned revenue is reported on the financial

A revenue on the balance sheet A liability on the balance sheet An unearned revenue on the income statement An asset on the balance sheet An operating activity on the statement of cash flows

Question 22. Question : the accounting cycle?

Which of the following identifies the proper order of

Analyze, Journalize, Unadjusted Trial Balance Analyze, Post, Unadjusted Trial Balance Journalize, Post, Adjusted Trial Balance Unadjusted Trial Balance, Adjusted Trial Balance, Close Adjusted Trial Balance, Adjustments, Financial Statements

Question 23. Question : The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: Cash basis accounting The matching principle The time period principle Accrual basis accounting Revenue basis accounting

Question 24. Question : A balance sheet that places the assets above the liabilities and equity is called a(n): Report form balance sheet Account form balance sheet Classified balance sheet Unadjusted balance sheet

Question 25.

Question :

A classified balance sheet:

Measures a company's ability to pay its bills on time Organizes assets and liabilities into important subgroups Presents revenues, expenses and net income Reports operating, investing and financing activities

Question 26. Question : A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011? $3,250 $3,500 $4,000 $6,500 &

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