Multiple choice questions in accounts fundamentals1the

Assignment Help Financial Accounting

Reference no: EM13356174

Multiple choice questions in Accounts fundamentals

1.The matching rule relates to credit losses by stating that bad debt expense should be recorded
a.In the same period as allowed for tax purposes.
b.for an exact amount.
c.in the period of the sale.
d.In the period of the loss.

2. Long-term creditors are usually MOST interested in evaluating
a.solvency.
b.liquidity.
c.marketability.
d.profitability.

3. The journal entry to record the issuance of bonds at a premium will include a
a.debit to Cash for the face amount of the bonds.
b.debit to Cash for the face amount of the bonds plus the amount of the premium.
c.credit to Cash for the face amount of the bonds.
d.debit to Cash for the face amount of the bonds minus the amount of the premium.

4. Declaring a cash dividend will
a.decrease common stock.
b.decrease retained earnings.
c.increase common stock.
d.increase retained earnings.

5. Under the accrual basis of accounting
a.the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.
b.cash must be received before revenue is recognized.
c.revenues and expenses are recognized in the period they occur rather than in the period in which cash is paid or received.
d.net income is calculated by matching cash outflows against cash inflows.

6. A debit is not the normal balance for which account listed below?
a.Dividends
b.Accumulated Depreciation
c.Prepaid Expense
d.Sales Discount

7. A gain or loss on disposal of a plant asset is determined by comparing the
a.replacement cost of the asset with the asset's original cost.
b.book value of the asset with the asset's original cost.
c.original cost of the asset with the proceeds received from its sale.
d. value of the asset with the proceeds received from its sale.

8. A successful discount retail store such as Walmart would probably have
a.low volume.
b.a low inventory turnover.
c.a high inventory turnover.
d.zero profit margin.

9. In periods of rising prices, which of the following inventory methods generally results in the lowest net income figure?
a.Average cost
b.Need more information to answer
c.LIFO method
d.FIFO method

Reference no: EM13356174

Questions Cloud

Bad debt expenses debited in the income statement based on : bad debt expenses debited in the income statement based on the details.bad debts analysis allowance account nbspon

Answer the following questions based onnbsp bank : answer the following questions based onnbsp bank reconciliationprepare a bank reconciliation as of august 31 from the

Prepare journal entrieson the lease and sublease detailson : prepare journal entrieson the lease and sublease detailson july 1 2004 harper company signed a contract to lease space

Preparenbsp a cash receipts and payments schedule based on : preparenbsp a cash receipts and payments schedule based on the details furnished.carter company has projected sales and

Multiple choice questions in accounts fundamentals1the : multiple choice questions in accounts fundamentals1.the matching rule relates to credit losses by stating that bad debt

Multiple choice questions based on fundamentals in : multiple choice questions based on fundamentals in accounting1.on january 1 a machine with a useful life of five years

Multiple choice questions1 recording depreciation expense : multiple choice questions1. recording depreciation expense each period is necessary in accordance with the a.matching

Compute sustainable growth rateinkheart inc has a profit : compute sustainable growth rateinkheart inc has a profit margin of 11 and a retention ratio of 70. last year the firm

Q1 compute the owners equity the data givenbased on the : q1. compute the owners equity the data givenbased on the following information calculate stockholders equitycash

User Account

All Pages