Question 1

Events such as the passage of time that day- to- day recording procedures temporarily ignore

Accepted Answer

Implicit t

Question 2

The accounting convention of _ ignores the effects of price level changes.

Accepted Answer

A)  recognition 
B)  cost benefits 
C)  matching 
D)  stable monetary unit 
A)  recognition 
B)  cost benefits 
C)  matching 
D)  stable monetary unit

Question 3

The cash basis of accounting recognizes the impact of transactions in the period when:

Accepted Answer

A)  revenues and expenses occur 
B)  the accounting equation increases 
C)  the transaction occurs 
D)  cash is received or disbursed 
A)  revenues and expenses occur 
B)  the accounting equation increases 
C)  the transaction occurs 
D)  cash is received or disbursed

Question 4

Explicit evidence of any transactions that occur in the entity's operation

Accepted Answer

The answer of Explicit evidence of any transactions that occur...

Question 5

Scorpion Company pays wages of $400 per day. The work week begins on Monday and ends on Friday. Wages are paid weekly every Friday. The current month ends on a Thursday. The adjusting entry for wages will:

Accepted Answer

A)  increase expenses by $2,000 
B)  have no effect on expenses 
C)  increase expenses by $400 
D)  increase expenses by $1,600 
A)  increase expenses by $2,000 
B)  have no effect on expenses 
C)  increase expenses by $400 
D)  increase expenses by $1,600

Question 6

A corporation is not a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 7

The conventions, rules, and procedures that together make up accepted accounting practice at any given time

Accepted Answer

Generally

Question 8

The accounting convention that justifies the omission of insignificant information when its omission or misstatement would not mislead a user of the financial statements

Accepted Answer

The answer of The accounting convention that justifies the omission...

Question 9

is not one of the three major financial statements.

Accepted Answer

A)  The statement of cash flows 
B)  The balance sheet 
C)  The statement of equity position 
D)  The income statement 
A)  The statement of cash flows 
B)  The balance sheet 
C)  The statement of equity position 
D)  The income statement

Question 10

are increased with debits.

Accepted Answer

A)  Assets and expenses 
B)  Expenses and paid- in capital 
C)  Assets and revenues 
D)  Liabilities and retained earnings 
A)  Assets and expenses 
B)  Expenses and paid- in capital 
C)  Assets and revenues 
D)  Liabilities and retained earnings

Question 11

Increases in revenues do not affect stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 12

The assumption that an organization will continue to exist and operate

Accepted Answer

Continuity

Question 13

are increased with credits.

Accepted Answer

A)  Revenues 
B)  Retained earnings 
C)  Liabilities 
D)  All of these answers are correct. 
A)  Revenues 
B)  Retained earnings 
C)  Liabilities 
D)  All of these answers are correct.

Question 14

A company's top management decides when to pay dividends and how much to pay.

Accepted Answer

A) True 
 B)False

Question 15

Cash collected from the customers before goods are delivered is known as:

Accepted Answer

A)  deferred revenue 
B)  advances from customers 
C)  unearned revenue 
D)  All of these answers are correct. 
A)  deferred revenue 
B)  advances from customers 
C)  unearned revenue 
D)  All of these answers are correct.

Question 16

Proctor Company had the following transactions. 1. The owner started the company by investing $8,000 of cash.
2) The company paid $2,000 for six months' rent in advance.
3) The company acquired $3,300 in inventory with two- thirds of the purchase on account.
4) The company sold inventory costing $1,400 for $2,900 on account.
The balance in the Cash account is:

Accepted Answer

A)  $7,800 debit balance 
B)  $4,900 credit balance 
C)  $1,600 debit balance 
D)  $4,900 debit balance 
A)  $7,800 debit balance 
B)  $4,900 credit balance 
C)  $1,600 debit balance 
D)  $4,900 debit balance

Question 17

would result in unchanged income under both the accrual and the cash basis.

Accepted Answer

A)  The expiration of prepaid rent 
B)  The payment of two months of rent in advance 
C)  Recognition of the current period's depreciation 
D)  None of these answers is correct. 
A)  The expiration of prepaid rent 
B)  The payment of two months of rent in advance 
C)  Recognition of the current period's depreciation 
D)  None of these answers is correct.

Question 18

Companies must write off research costs as expenses immediately.

Accepted Answer

A) True 
 B)False

Question 19

Hawk Company paid 6 months' insurance in advance, covering the period of July1 to December 31. The total payment was $5,400. At the time of the payment, the entire amount was used to increase the balance in the Prepaid Insurance account. The balance in the Prepaid Insurance account as of September 30 is:

Accepted Answer

A)  $3,600 
B)  $1,800 
C)  $2,700 
D)  $- 0- 
A)  $3,600 
B)  $1,800 
C)  $2,700 
D)  $- 0-

Question 20

A business organized as a separate legal entity and owned by its stockholders

Accepted Answer

The answer of A business organized as a separate legal...

Events such as the passage of time that day- to- day recording procedures temporarily ignore

The accounting convention of _ ignores the effects of price level changes.

The cash basis of accounting recognizes the impact of transactions in the period when:

Explicit evidence of any transactions that occur in the entity's operation

Scorpion Company pays wages of $400 per day. The work week begins on Monday and ends on Friday. Wages are paid weekly every Friday. The current month ends on a Thursday. The adjusting entry for wages will:

A corporation is not a separate legal entity.

The conventions, rules, and procedures that together make up accepted accounting practice at any given time

The accounting convention that justifies the omission of insignificant information when its omission or misstatement would not mislead a user of the financial statements

is not one of the three major financial statements.

are increased with debits.

Increases in revenues do not affect stockholders' equity.

The assumption that an organization will continue to exist and operate

are increased with credits.

A company's top management decides when to pay dividends and how much to pay.

Cash collected from the customers before goods are delivered is known as:

would result in unchanged income under both the accrual and the cash basis.

Companies must write off research costs as expenses immediately.

A business organized as a separate legal entity and owned by its stockholders

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

Exam 15: Overhead Application: Variable and Absorbtion Costing

Events such as the passage of time that day- to- day recording procedures temporarily ignore

The accounting convention of _ ignores the effects of price level changes.

The cash basis of accounting recognizes the impact of transactions in the period when:

Explicit evidence of any transactions that occur in the entity's operation

Scorpion Company pays wages of $400 per day. The work week begins on Monday and ends on Friday. Wages are paid weekly every Friday. The current month ends on a Thursday. The adjusting entry for wages will:

A corporation is not a separate legal entity.

The conventions, rules, and procedures that together make up accepted accounting practice at any given time

The accounting convention that justifies the omission of insignificant information when its omission or misstatement would not mislead a user of the financial statements

is not one of the three major financial statements.

are increased with debits.

Increases in revenues do not affect stockholders' equity.

The assumption that an organization will continue to exist and operate

are increased with credits.

A company's top management decides when to pay dividends and how much to pay.

Cash collected from the customers before goods are delivered is known as:

would result in unchanged income under both the accrual and the cash basis.

Companies must write off research costs as expenses immediately.

A business organized as a separate legal entity and owned by its stockholders

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