Reference no: EM131294033
1. Which of the following is a distinguishing characteristic of a deferral?
A. It affects at least one liability account
B. It always impacts the cash account
C. It includes the adjustment of an amount previously recorded in a balance sheet account
D. It increases a balance sheet account and decreases an income statement account
2. The distinguishing feature of a permanent account is that any balance in the account at the end of an accounting period is:
A. Carried forward to the next accounting period
B. Transferred to a temporary account
C. Transferred to the Cash account
D. Transferred to a permanent stockholders' equity account
E. None of the above
3. As supplies and PPE assets on the balance sheet are consumed, they are reflected:
A. As a revenue on the income statement
B. As an expense on the income statement
C. As common stock on the balance sheet
D. Assets are never consumed
4. Which of the following does not affect stockholders' equity?
A. Paying wages to employees
B. Receiving an investment of cash from an owner
C. Selling goods to customers with payment due in 30 days
D. Purchasing equipment with payment due in 30 days
E. None of the above
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