1- A bookkeeper debited an asset account on January 1 for $ 3,000 for 3 months of supplies. As of January 31, assuming supplies are used evenly over the 3 months, what is the entry that needs to be made to properly reflect supplies used in January?

- Credit to Supplies $ 1,000 and credit to expenses of supplies $ 1,000.

- Credit another liability account for $ 1,500.

- Debit to Supply expenses $ 2,000 and Credit to supplies $ 2,000

-Debit to Supplies $ 1,000 and Credit to expenses for supplies $ 1,000

-Debit to Supplies $ 2,000 and credit to expenses for supplies $ 2,000

2- A law firm billed a client $ 1,800 for work performed in the current month. Which of the following general journal entries will the company make to record this transaction?

-Cash debit, $ 1,800; Credit to Income for unearned legal fees, $ 1,800.

-Debit Accounts receivable, $ 1,800; Credit to Income for legal fees, $ 1,800.

-Cash debit, $ 1,800; Credit to Accounts Receivable, $ 1,800.

-Debit to Income for debit legal fees $ 1,800; Credit to Accounts Receivable, $ 1,800.

-Debit to Accounts Receivable, $ 1,800; Credit to Income for unearned legal fees, $ 1,800.

3- The principle of income recognition:

-Prescribe that accounting information is based on actual cost.

-It prescribes that a company record the expenses it incurred to generate the reported income.

-It prescribes that a company report the details behind the financial statements that would affect users' decisions.

-Provides guidance on when a company should recognize revenue.

-It means that the accounting information reflects a presumption that the business will continue to operate rather than be closed or sold.

4- A roofing company charges fees when the works are completed. Work for a client, whose work was offered for $ 3,000, was completed on December 31, but the client has not yet been billed. An adjusting entry is made for this transaction at the end of the year, what accounting principle / concept does this adjusting entry require?

-Parity

-suitable internal controls

- required billing

-full and fair disclosure

-No adjustment is required.

5- The expense of the rent appears in what financial state?

- Statement of Cash Flows and Balance Sheet

- Balance sheet.

- State of Capital of the Owners

- Income statement and balance sheet.

- Statement of income

6- Cash, inventories and accounts payable are reported in the:

-General balance within current assets

$ 792,000.

- Balance sheet within fixed assets

- Income Statement as part of Net Income

- Income Statement after Sales and Cost of Products Sold

7- A Balance Sheet that presents assets before liabilities and Capital is called:

- Classified Balance Sheet

- Balance Sheet in Account Format

- Reported Balance Sheet

- Unadjusted Balance Sheet

- Unclassified Balance Sheet

8- The usual order for the asset subgroups of a classified balance sheet is:

- Intangible assets, current assets, long-term investments, production assets.

- Long-term investments, current assets, production assets, intangible assets.

- Current assets, long-term investments, production assets, intangible assets.

- Production assets, intangible assets, long-term investments, current assets.

- Current assets, prepaid expenses, long-term investments, intangible assets.

9- Fraud is not only unethical behavior, but also illegal. Which of the following describes the component of the fraud triangle that refers to rationalization?

- Be able to commit fraud when there is a low risk of being discovered

- Do not view committing fraud as a criminal act

- Have initiative and intention to commit fraud

- Note that there are no internal controls established within the company

10- Which of the following statements is one of the results of the implementation of the Sarbanes-Oxley Act?

- The administration must issue a report indicating that the established internal controls 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