Question 1

Van Halen Company pays weekly wages every Friday. The current month ends on a Wednesday. The adjusting entry for wages will:

Accepted Answer

A)  decrease liabilities and decrease cash. 
B)  increase liabilities and increase expenses 
C)  increase expenses and decrease cash 
D)  increase assets and increase expenses 
A)  decrease liabilities and decrease cash. 
B)  increase liabilities and increase expenses 
C)  increase expenses and decrease cash 
D)  increase assets and increase expenses

Question 2

Piston Company owns a fixed asset with an original cost of $100,000. Piston Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000. The annual depreciation expense is:

Accepted Answer

A)  $- 0- 
B)  $22,500 
C)  $25,000 
D)  $10,000 
A)  $- 0- 
B)  $22,500 
C)  $25,000 
D)  $10,000

Question 3

Entries for expiration of unexpired costs and realization (earning) of unearned revenues are usually made before the related cash flows.

Accepted Answer

A) True 
 B)False

Question 4

Research and development costs:

Accepted Answer

A)  are initially recorded as assets, and are expensed when the goods produced are sold 
B)  are initially recorded as assets, and are expensed when they are paid in cash 
C)  are initially expensed 
D)  are initially recorded as assets, and written off in a systematic way over a period of years 
A)  are initially recorded as assets, and are expensed when the goods produced are sold 
B)  are initially recorded as assets, and are expensed when they are paid in cash 
C)  are initially expensed 
D)  are initially recorded as assets, and written off in a systematic way over a period of years

Question 5

Depreciation is computed on:

Accepted Answer

A)  equipment and buildings 
B)  equipment, land, and buildings 
C)  equipment and land 
D)  land and buildings 
A)  equipment and buildings 
B)  equipment, land, and buildings 
C)  equipment and land 
D)  land and buildings

Question 6

For a corporation, assets must equal liabilities and paid- in capital.

Accepted Answer

A) True 
 B)False

Question 7

A business entity with a single owner

Accepted Answer

The answer of A business entity with a single owner...

Question 8

A company uses the going concern convention when it is in a severe, near- bankrupt situation.

Accepted Answer

A) True 
 B)False

Question 9

Stockholders' equity is composed of paid- in capital and retained earnings.

Accepted Answer

A) True 
 B)False

Question 10

Collections from customers that companies receive and record before they earn the revenue

Accepted Answer

Unearned r

Question 11

The matching convention attempts to match revenues and expenses to a particular period.

Accepted Answer

A) True 
 B)False

Question 12

The accounting convention of guides the relative sophistication of the accounting system.

Accepted Answer

A)  conservatism 
B)  materiality 
C)  objectivity 
D)  cost benefit 
A)  conservatism 
B)  materiality 
C)  objectivity 
D)  cost benefit

Question 13

Increases in ownership claims arising from the delivery of goods or services

Accepted Answer

The answer of Increases in ownership claims arising from the...

Question 14

Asset values may not be written down.

Accepted Answer

A) True 
 B)False

Question 15

Any event that affects the financial position of an organization and requires recording is called:

Accepted Answer

A)  an account 
B)  a posting 
C)  a transaction 
D)  an accounting change 
A)  an account 
B)  a posting 
C)  a transaction 
D)  an accounting change

Question 16

Distributions of assets to stockholders that reduce retained earnings

Accepted Answer

The answer of Distributions of assets to stockholders that reduce...

Question 17

The adjusting entry increases expenses and increases liabilities.

Accepted Answer

A)  depreciation 
B)  wages 
C)  prepaid rent 
D)  revenue received from customers in advance 
A)  depreciation 
B)  wages 
C)  prepaid rent 
D)  revenue received from customers in advance

Question 18

Retained earnings indicate the amount of cash available for distribution to shareholders.

Accepted Answer

A) True 
 B)False

Question 19

A magazine publisher sells annual subscriptions. The distribution of the monthly issue affects the firm by:

Accepted Answer

A)  increasing liabilities and decreasing revenues 
B)  increasing assets and increasing revenues 
C)  increasing revenues and decreasing liabilities 
D)  increasing liabilities and increasing assets 
A)  increasing liabilities and decreasing revenues 
B)  increasing assets and increasing revenues 
C)  increasing revenues and decreasing liabilities 
D)  increasing liabilities and increasing assets

Question 20

Decreases in ownership claims arising from delivering goods or services or consuming assets

Accepted Answer

The answer of Decreases in ownership claims arising from delivering...

Van Halen Company pays weekly wages every Friday. The current month ends on a Wednesday. The adjusting entry for wages will:

Piston Company owns a fixed asset with an original cost of $100,000. Piston Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000. The annual depreciation expense is:

Entries for expiration of unexpired costs and realization (earning) of unearned revenues are usually made before the related cash flows.

Research and development costs:

Depreciation is computed on:

For a corporation, assets must equal liabilities and paid- in capital.

A business entity with a single owner

A company uses the going concern convention when it is in a severe, near- bankrupt situation.

Stockholders' equity is composed of paid- in capital and retained earnings.

Collections from customers that companies receive and record before they earn the revenue

The matching convention attempts to match revenues and expenses to a particular period.

The accounting convention of guides the relative sophistication of the accounting system.

Increases in ownership claims arising from the delivery of goods or services

Asset values may not be written down.

Any event that affects the financial position of an organization and requires recording is called:

Distributions of assets to stockholders that reduce retained earnings

The adjusting entry increases expenses and increases liabilities.

Retained earnings indicate the amount of cash available for distribution to shareholders.

A magazine publisher sells annual subscriptions. The distribution of the monthly issue affects the firm by:

Decreases in ownership claims arising from delivering goods or services or consuming assets

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

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Exam 15: Overhead Application: Variable and Absorbtion Costing

Van Halen Company pays weekly wages every Friday. The current month ends on a Wednesday. The adjusting entry for wages will:

Piston Company owns a fixed asset with an original cost of $100,000. Piston Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000. The annual depreciation expense is:

Entries for expiration of unexpired costs and realization (earning) of unearned revenues are usually made before the related cash flows.

Research and development costs:

Depreciation is computed on:

For a corporation, assets must equal liabilities and paid- in capital.

A business entity with a single owner

A company uses the going concern convention when it is in a severe, near- bankrupt situation.

Stockholders' equity is composed of paid- in capital and retained earnings.

Collections from customers that companies receive and record before they earn the revenue

The matching convention attempts to match revenues and expenses to a particular period.

The accounting convention of guides the relative sophistication of the accounting system.

Increases in ownership claims arising from the delivery of goods or services

Asset values may not be written down.

Any event that affects the financial position of an organization and requires recording is called:

Distributions of assets to stockholders that reduce retained earnings

The adjusting entry increases expenses and increases liabilities.

Retained earnings indicate the amount of cash available for distribution to shareholders.

A magazine publisher sells annual subscriptions. The distribution of the monthly issue affects the firm by:

Decreases in ownership claims arising from delivering goods or services or consuming assets

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters