Reference no: EM132546005

Questions -

Q1. A company paid the $1,350 premium on a three-year insurance policy on April 1, 2020. The policy gave protection beginning on that date. How many dollars of the premium will appear as an expense on the calendar year 2020 income statement assuming the accrual basis of accounting? Assuming the cash basis of accounting?

A. $1,350 accrual basis; $337.50 cash basis

B. $450 accrual basis; $450 cash basis

C. $337.50 accrual basis; $1,350 cash basis

D. $1,012.50 accrual basis; $1,350 cash basis

E. $1,350 accrual basis; $1,350 cash basis

Q2. Emilia Feridy, the proprietor of EF Services, withdrew a total of $50 for to pay for her daughter's swimming lessons. What is the entry needed to record this transaction?

A. Debit Emilia Feridy, Capital and credit Cash for $50.

B. Debit Emilia Feridy, Withdrawals and credit Cash for $50.

C. Debit Emilia Feridy, Withdrawals and credit Emilia Feridy, Capital for $50.

D. Debit Emilia Feridy, Capital and credit Emilia Feridy, Withdrawals for $50.

E. Debit Cash and credit Emilia Feridy, Withdrawals for $50.

Q3. A post-closing trial balance shows

A. All ledger accounts with a balance, none of which can be temporary accounts

B. All ledger accounts with a balance, none of which can be permanent accounts

C. All ledger accounts with a balance, which include some temporary and some permanent accounts

D. Only revenue and expense accounts

E. Only asset accounts

Q4. On April 4, Fignola Company (FC) sold sweaters to one of its customers for $65,000 on credit terms of 3/15, net 30. On April 8, the customer contacted FC to say that the sweater colours did not match their original order. FC reached an agreement with the customer to keep the shipment and FC granted the customer a price reduction of $3,000. The customer paid the outstanding bill on April 15. The journal entry to be made by FC on April 15 is

A. Debit Sales Returns and Allowances $3,000; Credit Accounts Receivable $3,000

B. Debit Accounts Receivable $62,000; Credit Sales Revenue $62,000

C. Debit Cash $62,000; Credit Accounts Receivable $62,000

D. Debit Cash $60,140; Debit Sales Discounts $1,860; Credit Accounts Receivable $62,000

E. Debit Cash $62,000; Debit Sales Discounts $1,860; Credit Accounts Receivable $55,290

Q5. Zang Company had no office supplies on hand at the beginning of the year. During the year, the company purchased $250 worth of office supplies. At the end of the year, $50 worth of office supplies were on hand. How much should Zang Company report as office supplies expense for the year?

A. $75

B. $125

C. $175

D. $200

E. $325

Q6. The primary objective of financial accounting is

A. to help organizations keep track of financing activities

B. to provide external reports to help users analyze an organization's activities

C. to help an organization define its ideas, goals, and action

D. to help an organization to keep track of its buying and selling of resources

E. to prepare budgets

Q7. The adoption of international accounting standards is an application of which of the following quality enhancing characteristics of financial information

A. verifiability

B. understandability

C. timeliness

D. comparability

E. completeness

Q8. On May 31, Charlotte Company had an Accounts Payable balance of $57,000. During the month of June, total credits to Accounts Payable were $34,000, which resulted from purchases on credit. The June 30 Accounts Payable balance was $7,000. What was the amount of payments made during June?

A. $32,000

B. $34,000

C. $57,000

D. $59,000

E. $84,000

Q9. Before recording adjusting entries, the Office Supplies account had a $359 debit balance while a physical count of the supplies showed $105 of unused supplies on hand. Thus, the required adjusting entry is

A. Debit Office Supplies $105 and credit Office Supplies Expense $105

B. Debit Office Supplies Expense $254 and credit Office Supplies $254

C. Debit Office Supplies Expense $105 and credit Office Supplies $105

D. Debit Office Supplies $254 and credit Office Supplies Expense $254

E. Some other entry

Q10. If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Services Revenue, the end-of-period adjusting entry to record the portion of these fees that has been earned is

A. Debit Cash and credit Legal Service Revenue

B. Debit Cash and credit Unearned Legal Service Revenue

C. Debit Unearned Legal Service Revenue and credit Legal Service Revenue

D. Debit Legal Service Revenue and credit Unearned Legal Service Revenue

E. Some other entry