1.

The Charleston Company pre-pays annual rent. If the adjusting entry to record the current periods prepaid rent expired is not recorded:

Select one:

a. Current assets will be understated

b. Net income will be overstated

c. Current liabilities will be overstated

d. Current liabilities will be understated

e. Gross Profit will be overstated

2.

Which organization is attempting to establish one set of accounting standards to be used in every country in the world?

Select one:

a. PCAOB

b. AICPA

c. IASB

d. FASB

e. APB

3.

Which is a typical result of a declaration of a cash dividend but not a declaration of a stock dividend?

Select one:

a. Retained Earnings decreases

b. Common Stock account increases

c. Net Income decreases

d. Liabilities increase

e. Liabilities decrease

4.

The disclosure of income tax effects based on the item causing the tax effect is named:

Select one:

a. Cost Principle

b. Matching Principle

c. Intra-period tax allocation

d. Inter-period tax allocation

e. Full Disclosure Principle