Reference no: EM132663981
Questions -
Q1- Adriana Graphic Design receives $ 1,500 from a client billed in a previous month for the services provided. Which of the following general journal entries will Adriana Graphic Design make to record this transaction?
Accounts receivable 1,500
Cash 1,500
Accounts receivable 1,500
Unearned Design Income 1,500
Cash 1,500
Accounts receivable 1,500
Accounts Payable 1,500
Design revenue 1,500
Cash 1,500
Unearned Design Income 1,500
Q2- If a company buys equipment that costs $ 10,000 on January 1 and the depreciation of this equipment is estimated at $1,000 per year. What entry must be made on December 31 for depreciation?
Debit to depreciation expense $ 10,000, credit to accumulated depreciation $ 10,000
Debit to depreciation expense $ 9,000, credit to accumulated depreciation $ 9,000
Equity decreases $ 10,500 and liabilities increase $ 10,500.
Debit to depreciation expense $ 1,000, credit to accumulated depreciation $ 1,000
No entry is made, as depreciation is only recorded when the equipment is sold.
Q3- The underestimation of the initial inventory balance causes:
The cost of goods sold must be inflated and the net income must be correct.
Cost of goods sold will be overstated and net income will be overstated.
Cost of goods sold will be underestimated and net income will be overstated.
The cost of goods sold will be underestimated and net income will be underestimated.
Cost of goods sold will be overstated and net income will be underestimated.
Q4- A company did not make any adjustments to the salaries of the increased and unpaid employees of $ 9,000 on December 31. Which of the following statements is true?
You will underestimate expenses and exaggerate net income by $ 9,000.
You will underestimate assets by $ 9,000.
It will have no effect on income.
You will underestimate the net income by $ 9,000.
You will overestimate assets and liabilities by $ 9,000.
Q5- All the following accounts are classified as assets in the Balance Sheet, with the exception of:
Debts to pay.
Teams.
Accounts receivable.
Land.
Supplies.
Q6- The financial statement where income and expenses are listed is called:
Owners' Capital Status
Balance sheet
Statement of income
State of financial position
Statement of cash flows
Q7- The usual order for the asset subgroups of a classified balance sheet is:
Intangible assets, current assets, long-term investments, production assets.
Production assets, intangible assets, long-term investments, current assets.
Current assets, prepaid expenses, long-term investments, intangible assets.
Current assets, long-term investments, production assets, intangible assets.
Long-term investments, current assets, production assets, intangible assets.
Q8- The order in which the subgroups of the Liabilities accounts are presented in the Balance Sheet is:
Current liabilities, prepaid liabilities, unearned liabilities, long-term liabilities
Current liabilities, long-term liabilities
Owners' liabilities, intangible liabilities, long-term liabilities
Intangible liabilities, current liabilities, long-term liabilities
Long-term liabilities, current liabilities
Q9- Fraud prevention is an ethical and professional accounting consideration. Which of the following statements is not part of the Fraud triangle?
Pressure
Rationalization
Passives
Opportunity
Q10- Which of the following statements is one of the results of the implementation of the Sarbanes-Oxley Act?
Management must issue a report indicating that the internal controls established are effective.
Auditors should prepare a report that indicates that internal controls are effective
Auditors are not responsible for reporting on the effectiveness of internal controls.
Management is not responsible for reporting on internal controls.
Q11- Which of the following statements is one of the results of the implementation of the Sarbanes-Oxley Act?
Management must issue a report indicating that the internal controls established are effective.
Auditors should prepare a report that indicates that internal controls are effective
Auditors are not responsible for reporting on the effectiveness of internal controls.
Management is not responsible for reporting on internal controls
Q12- Congress passed the Dodd-Frank (or Dodd-Frank) Wall Street Reform and Consumer Protection Act. Which of the following are two of the important provisions of Dodd-Frank?