Hi, could I be assisted with answering these 15 questions?
| 1.Board members of a(n) ________ have a fiduciary responsibility. (Points : 1) |
not-for-profit organization
corporation
LLC
publicly held company |
| Question 2.2.________ granted by the state and allows a business to become a corporation. (Points : 1) |
A stock certificate is
Articles of organization are
Bylaws are
A charter is |
| Question 3.3.The ________ requires that information is reported at least annually. (Points : 1) |
matching principle
time-period concept
entity concept
going-concern concept |
| Question 4.4.CarlT Services bills customers at the end of the month for services rendered during the month. What account accumulates the balances that customers owe to CarlT Services? (Points : 1) |
cash
sales revenue
prepaid expenses
accounts receivable |
| Question 5.5.Senior managers, including the accounting manager, of Danbury Corporation receive annual bonuses based on the company’s profits. During a period of recession, Danbury Corporation had lagging profits. The accounting manager chose not to record all of the necessary adjusting entries including the journal entries accruing property tax expense and adjusting the prepaid expense balances. This omission allowed Danbury Corporation to report profits comparable to that of prior years’, and senior management was able to receive their bonuses. The information reported in the financial statements prepared by the accounting manager violated the ________. (Points : 1) |
going-concern concept
cost principle
faithful representation principle
revenue recognition principle |
| Question 6.6.The accounting firm of Smith & Rhodes is engaged to perform an audit on Ferguson Company. The engagement letter is signed May 27th. Work on the audit begins immediately. On June 20th, the partner in charge delivers the completed audit report and financial statements to Ferguson Company. The invoice states that the bill for the audit is due by July 10th. Smith & Rhodes receives payment from Ferguson on July 6th. Revenue for the services provided is recorded on ________. (Points : 1) |
May 27th
June 20th
July 6th
July 10th |
| Question 7.7.The People’s Bank loaned large amounts of money to several property developers during the recent recession. The property developers defaulted on their loans and declared bankruptcy. People’s bank is having difficulty recovering from these losses. They are looking at opportunities to sell off their assets. In regards to this information, the auditors of People’s Bank should consider whether the People’s Bank is________. (Points : 1) |
a going-concern
violating the entity concept
correctly applying the matching principle
a stable monetary unit |
| Question 8.8.Lisa’s rent for her store is due at the beginning of each month. On January 2nd, she writes a check for $1500 for January’s rent. How does this transaction affect the accounting equation? (Points : 1) |
assets are decreased and owner’s equity is decreased
assets are decreased and liabilities are increased
owner’s equity is increased and liabilities are increased
owner’s equity is decreased and liabilities are decreased |
| Question 9.9.________ is an example of a contra account. (Points : 1) |
Accumulated depreciation
Deferred revenue
Prepaid expenses
Accounts receivable |
Question 10.10.Below is a list of account balances for Greene Industrial Cleaning Company.
| Accounts receivable |
$ 5,400 |
| Accounts payable |
3,200 |
| Salary expense |
6,000 |
| Repairs expense |
1,500 |
| Truck |
10,000 |
| Equipment |
6,300 |
| Notes payable |
3,500 |
| Cash |
6,800 |
| Supplies expense |
1,600 |
| Service revenue |
45,000 |
| Fuel expense |
3,800 |
| Salary payable |
200 |
| Interest revenue |
50 |
| Owner draws |
3000 |
Based on the account balances above, total assets are ________. (Points : 1) |
23,100
$73,550
$28,500
12,200 |
| Question 11.11.QRS Publishing sells magazine subscriptions. Cash is received by QRS up front before any magazines are mailed to customers. QRS received $60,000 in June 20X1 for subscriptions to magazines that will be distributed between July 20X1 and June 20X2. What should be the adjusting journal entry on December 31st assuming the receipt of cash was initially recorded as unearned revenues? (Points : 1) |
| December 31 |
Cash |
30,000 |
|
Sales Revenue |
30,000 |
| December 31 |
Sales Revenue |
30,000 |
|
|
Unearned Revenue |
30,000 |
| December 31 |
Unearned Revenue |
30,000 |
|
Cash |
30,000 |
| December 31 |
Unearned Revenue |
30,000 |
|
Sales Revenue |
30,000 |
|
Question 12.12.Below is a list of account balances for Greene Industrial Cleaning Company.
| Accounts receivable |
$ 5,400 |
| Accounts payable |
3,200 |
| Salary expense |
6,000 |
| Repairs expense |
1,500 |
| Truck |
10,000 |
| Equipment |
6,300 |
| Notes payable |
3,500 |
| Cash |
6,800 |
| Supplies expense |
1,600 |
| Service revenue |
45,000 |
| Fuel expense |
3,800 |
| Salaries payable |
200 |
| Interest revenue |
50 |
| Owner draws |
3000 |
Based on the account balances above, owner’s equity ________ during the period. (Points : 1) |
increased $29,150
increased $34,150
decreased $3,000
did not change |
| Question 13.13.QRS Publishing sells magazine subscriptions. Cash is received by QRS up front before any magazines are mailed to customers. QRS received $60,000 in June 20X1 for subscriptions to magazines that will be distributed between July 20X1 and June 20X2. What should be the adjusting journal entry on December 31st assuming the receipt of cash was initially recorded as sales revenues? (Points : 1) |
| December 31 |
Cash |
30,000 |
|
Sales Revenue |
30,000 |
| December 31 |
Sales Revenue |
30,000 |
|
|
Unearned Revenue |
30,000 |
| December 31 |
Unearned Revenue |
30,000 |
|
Cash |
30,000 |
| December 31 |
Unearned Revenue |
30,000 |
|
Sales Revenue |
30,000 |
|
| Question 14.14.IFRS requires the disclosure of the ________ financial statement(s). (Points : 1) |
current and prior year
current and two previous years’
current year
current and three previous years’ |
|
Question 15.15.With respect to revenue recognition principle and the expense recognition principle, which of the following is true for GAAP? (Points : 1)
|
liabilities must be listed with nearest due first
equity is presented before liabilities on the balance sheet
non-current items are presented over current items
accounts must be broken out as current and non-current |
