A post-closing trial balance will

1)	contain both income statement and statement of financial position accounts.

2)	be prepared before closing entries are posted to the ledger.

3)	none of the answer is correct.

4)	contain only statement of financial position accounts.

5)	contain only income statement accounts.

On December 1, 2019, Ali Co. receives $1,800 in advance for an agreement to brew beer during the months of December, January, and February. On December 31, 2019, Ali Co.:

1)	would have a $1,200 liability to its client under accrual accounting, and would have a $1,800 liability to its client under cash-basis accounting

2)	would have recognized $600 unearned revenue under accrual accounting, and would have recognized 1,800 cash under cash-basis accounting

3)	would have recognized $600 revenue under accrual accounting, and would have recognized $1,800 revenue under cash-basis accounting

4)	would have a $0 liability to its client under accrual accounting, and would have a $1,200 liability to its client under cash-basis accounting

Notification by the bank that a customer's deposited cheque was returned NSF requires that the depositor make the following adjusting entry:

1)	Dr. Cash; Cr. Accounts Receivable

2)	Dr. NSF Expense; Cr. Cash

3)	Dr. Bank Charges Expense; Cr. Accounts Receivable

4)	Dr. Accounts Receivable; Cr. Cash

During the year, Peter Ltd., which uses the allowance method, made an entry to write off a $2,000 uncollectible account. Before this entry was posted, the balance in accounts receivable was $40,000 and the balance in the allowance account was $3,500. The net realizable value of accounts receivable after the write off entry was

1)	$38,500.00

2)	$38,000.00

3)	$40,000.00

4)	$36,500.00

When it is unlikely that the company may lose a lawsuit, a company will:

1)	Omit this information from its financial statements and notes disclosure.

2)	Include a description in the foot notes to the financial statements.

3)	Record the estimated amount of loss as a provision on the balance sheet.

4)	Record the amount of the liability times the probability of its occurrence.

David Callen is a warehouse custodian and also maintains the accounting records of the inventory held at the warehouse. Which control activity is violated?

1)	review and reconciliation

2)	documentation

3)	segregation of duties

4)	assignment of responsibility

Shannon Ltd.'s allowance for doubtful accounts was $255,000 at the end of 2020 and $315,000 at the end of 2019. For the year ended December 31, 2020, Shannon reported bad debt expense of $54,000 in its income statement. What amount did Shannon Ltd. write off uncollectible debts during 2020?

1)

$114,000

2)

$103,950

3)

$36,000

4)

$60,000