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APU ACCT300 week 2 quiz 2

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Question;Question 1 of 20;5.0/ 5.0 Points;In a transaction where purchased merchandise has been;returned, the buyer will increase the Sales Returns and Allowances account and;the seller will increase the Purchases Returns and Allowances account.;A. True;B. False;Answer Key;Question 2 of 20;5.0/ 5.0 Points;Liabilities that will not be due for more than one year are;called long-term liabilities.;A. True;B. False;Answer Key;Question 3 of 20;0.0/ 5.0 Points;UNI Co. received $1,000 advance from Newbie as rent for the;use of a building owned by UNI. How does this transaction affect UNI?s accounts;if UNI recognizes a liability?;A.Cash is increased;and revenue is increased.;B.Cash is increased;and revenue is decreased.;C.Cash is increased;and unearned revenue is increased.;In D.It is;not recorded.;Answer Key;Question 4 of 20;5.0/ 5.0 Points;Which of the following accounts would likely be included in;a deferral adjusting entry?;A.Interest Revenue;B.Unearned Revenue;C.Salaries Payable;D.Accounts Receivable;Answer Key: BQuestion 5 of 20;5.0/ 5.0 Points;The amount of the total cash paid to the seller for merchandise;purchased would normally include;A.only the list;price.;B.only the sales tax.;C.the list price plus the sales tax.;D.the list price less;the sales tax.;Answer Key;Question 6 of 20;0.0/ 5.0 Points;The merchandise inventory account is found on the balance;sheet.;In;A. True;B. False;Answer Key;Question 7 of 20;5.0/ 5.0 Points;Sales discounts are granted by the seller to customers for;payment at the end of the month.;A. True;B. False;Answer Key;Question 8 of 20;5.0/ 5.0 Points;Which transaction would be recorded in a cash basis system;of accounting?;A.Purchase of;equipment by signing a note;B.Purchase of;supplies on credit;C.Sale of goods;against a note;D.Sale of goods for cash;Answer Key: D;Question 9 of 20;5.0/ 5.0 Points;The revenue recognition concept states that revenue should;be recorded in the same period as the cash is received.;A. true;B. False;Answer Key;Question 10 of 20;5.0/ 5.0 Points;If the buyer is to pay the delivery expense of delivering;merchandise, delivery terms are stated as;A.FOB shipping point.;B.FOB destination.;C.FOB n/30.;D.FOB buyer.;Answer Key;Question 11 of 20;5.0/ 5.0 Points;The liabilities that are due to be paid usually within a;year of less are called;A.long-term;liabilities.;B.deferred;liabilities.;C.current liabilities.;D.contingent;liabilities.;Answer Key;Question 12 of 20;5.0/ 5.0 Points;Under the accrual basis of accounting, net cash flows from;operating activities on the statement of cash flows will normally be the same;as net income.;A. True;B. False;Answer Key;Question 13 of 20;5.0/ 5.0 Points;On April 1, Bear, Inc. paid $2,400 for an insurance premium;on a three-year insurance policy. At the end of December, Bear?s fiscal;year-end, what should be the balance in the prepaid insurance account?;A.$2,700;B.$3,000;C.$2,400;D.$1,800;Answer Key;Question 14 of 20;5.0/ 5.0 Points;Since merchandise inventory is normally sold within a year;how is it reported on the balance sheet?;A.As a revenue;B.As the cost of;merchandise sold;C.It does not appear;on the balance sheet;D.As a current asset;Answer Key;Question 15 of 20;5.0/ 5.0 Points;The accrual basis of accounting requires revenue to be;recorded when the service is performed.;A. True;B. False;Answer Key;Question 16 of 20;5.0/ 5.0 Points;Eagle Eye, Inc., a corporation, received an additional;investment of $6,000 cash in exchange for shares of capital stock. How does;this transaction affect Eagle Eye?s accounts?;A.Increase in stock;expense and decrease cash by $6,000 each;B.Increase capital stock and increase cash by;$6,000 each;C.Increase capital;stock and increase revenue by $6,000 each;D.Increase capital;stock and decrease retained earnings by $6,000 each;Answer Key;Question 17 of 20;5.0/ 5.0 Points;Flyer Co. billed a client for flying lessons given in;January. The payment was received in February. Under the accrual basis of;accounting, when should Flyer Co. record the revenue?;A.January;B.February;C.Some in January and;some in February;D.Flyer Co. should;not record any revenue;Answer Key;Question 18 of 20;5.0/ 5.0 Points;Which expenses are subtracted from gross profit to arrive at;income from operations?;A.All expenses;B.Cost of merchandise;sold;C.Operating expenses;D.Sales discounts;Answer Key;Question 19 of 20;5.0/ 5.0 Points;Depreciation Expense and Accumulated Depreciation are;classified, respectively, as;A.expense and contra asset.;B.asset and contra;liability.;C.revenue and asset.;D.contra asset and;expense.;Answer Key;Question 20 of 20;5.0/ 5.0 Points;The __________ is prepared with various sections;subsections, and captions that aid in its interpretation and analysis.;A.accounting equation;B.retained earnings;statement;C.intangible asset;section;D.classified balance sheet;Answer Key

 

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