1.

On 12/31/12, as part of the year-end adjusting journal entries, the Strickland Company accrues three day's wages of $600 ($200 per day). The proper 12/31/12 closing entries are made. No reversing entry is made on 1/1/13. Strickland pays the weekly payroll of $1,000 on 1/2/13. The balance in the Wage Expense account after the 1/2/13 journal entry will be:

Select one:

a. $0

b. $400

c. $600

d. $1,000

e. $1,200

2.

Which principle is most representative of the accrual basis of accounting?

Select one:

a. Industry Practices

b. Revenue Recognition

c. Full Disclosure

d. Going Concern

3.

Indicate the proper journal entry to record payment of a cash dividend previously declared:

Select one:

a. Debit Cash, credit Dividend Payable

b. Debit Dividends, credit Cash

c. Debit Dividends, credit Dividend Payable

d. Debit Dividend Payable, credit Cash

e. Debit Cash, credit Dividends

4.

The Pieper Corp. recorded the accrual of an expense by debiting Unearned Revenue and crediting Accounts Receivable.

Indicate the effect of the error on Assets, Liabilities, and Net Income, respectively:

Select one:

a. Understated, Understated, Overstated

b. Overstated, Understated, Overstated

c. Understated, No Error, Overstated

d. No Error, No Error, No Error

e. Understated, No Error, Understated