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1) In January you camed $2,000 but only deposited your money in the bank in February, Your expenses in Januarywer 51.500 which were charged to
1) In January you camed $2,000 but only deposited your money in the bank in February, Your expenses in Januarywer 51.500 which were charged to your credit card and which need to be paid in March. What was the impact to your new in Janary 2) Your net worth did not change in January b) In January, you net worth increased by $500 c) No impact in Jummary but your net worth will go up by $2.000 in February and go down by $1.500 in Mar ) No impact in January but your net worth will increase by 5500 in March 21 Crediting income statement balances is part of the closing entry to a) close revenue accounts for the year b) transfer revenue balances to cash c) close expense accounts for the year d) close the drawings account for the year 3) The bookkeeper of ABC Gym receives advanced membership payments from customers and record it as revenue of the following principles did the bookkeeper violate! 3) The consistency principle b) The revenue recognition principle c) The measurement principle d) The disclosure principle 4) Recording and recognizing prepaid expenses is an example reflecting which of the following principles a) Expense Recognition Principle b) Consistency Principle c) Measurement Principle d) Time Period Concept 5) Afer posting the closing entries, a company must prepare an 3) ped-closing trial balance b) adjusted trial balance c) adjusted trial balance d) posting trial balance 6) Which of the following statements is correct regarding adjustments a) Adjustments are optional b) All adjustments are made at the beginning of the accounting period c) Adjustments will correctly allocate cash to revenue or expenses d) Adjustments update assets. liabilities and owner's equity 7) You prepay 5600 in January towards insurance for the year. By how much will your net worth have been affected if cancel your policy after 6 month? a) Decrease by 5600 b) It will not change at all c) Increase by S300 d) Decrease by $300 *) Which of the following is FALSE regarding the accounting cycle? a) The first step is to record transactions in the journal b) Account balances are taken from the trial balance and posted to the general ledger Adjusting entries occur before closing entries d) The post-closing trial balance contains only balance sheet accounts 9 Sury Products is a publicly held corporation. As part of the company's recent cost saving strategies, the accountant decided to have the financial statements prepared annually instead of quarterly. Which characteristic or principle is viol iany? a) The Conservatism Principle b) Reliability c) Relevance d) The company does not violate any principles er characteristics
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