Question
5 multiple choice questions 1. Which of the following is an example of an Asset Use Transaction? Anna Co. received $500,000 by selling its products
5 multiple choice questions
1. Which of the following is an example of an Asset Use Transaction?
Anna Co. received $500,000 by selling its products to customers.
Franco Co. acquired $500,000 of cash by borrowing from a bank.
Melissa Co. uses cash to pay its employees.
Tulip Co. uses cash to buy inventory.
2. Arrange the steps of an accounting cycle in the right order:
A adjusting the accounts
B closing the temporary accounts
C recording transactions
D preparing financial statements
Answer options:
CADB
CBDA
CABD
DCBA
3. Which of the following accounting entries is NOT correct? If a company pays cash for salary expense, the Salary Expense account is credited and the Cash account is debited.
If a company purchases supplies on account, the Supplies account is debited, and the Account Payable is credited.
If a company pays cash to purchase land, the Land account is debited and the Cash account is credited.
If a company recognizes other operating expenses on account, the Other Operating Expenses account is debited and Accounts Payable are credited.
4. A company reported the following results: Total assets $100,000; Current assets $80,000; Net Income $20,000; Gross Income $40,000. Which of the following is the companys return-on-assets ratio?
0.4
0.25
0.5
0.2
5. The method according to which when valuing a company's inventory, it is recorded on the balance sheet at either the historical cost or the market value is called what?
Lower-of-Cost-or-Market rule
Gross Margin method
Historical cost method
Specific Identification
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