accounting question

1. On December 15 of the current year, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in the following year. Which accounting principle would require Myers Legal Services to record the legal fees revenue in the following year and not the year the cash was received? Monetary unit assumption. Goingconcern assumption. Cost principle. Business entity assumption. Revenue recognition principle. P150173?\" 2. If a company mistakenly forgot to record depreciation on ofce equipment at the end of an accounting period, the nancial statements prepared at that time would show: A. Assets overstated and equity understated. B. Assets and equity both undeistated. C. Assets overstated, net prot understated, and equity overstated. D. Assets, net prot, and equity understated. E. Assets, net prot, and equity overstated. 3. A company has inventory of 15 units at a cost of $12 each onAugjust 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 20 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale? A. $140. B. $160. C. $210. D. $380. E. $590. 4. On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be performed over a twoyear period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 3 1 for Apricot would include: A. A debit to an expense for $5,625. B. A debit to a prepaid expense for $5,625. C. A debit to an expense for $1,875. D. A debit to a prepaid expense for $1,875. E. A credit to a liability for 51,87 5. 5. A company used straight-line depreciation for an item of equipment that cost $12,000, had a residual value of $2,000, and had a five-year useful life. After depreciating the asset for three complete years, the residual value was reduced to $1,200 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life: A. $1,000. B. $1,800. C. $1,467. D. $1,600. $2,160. 6. J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year is: A. Debit J. Awn, Withdrawals $8,700; credit Cash, $8,700 B. Debit J. Awn, Capital $8,700; credit J. Awn, Withdrawals $8,700 C. Debit J. Awn, Withdrawals $8,700; credit J. Awn, Capital $8,700 D. E. Debit J. Awn, Capital $8,700, credit Salary Expense $8,700 Debit Income Summary $8,700; credit J. Awn, Capital $8,700 7. A trial balance taken at year-end showed total credits exceed total debits by $4,950. This discrepancy could have been caused by: A. An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash. B. A net profit of $4,950. C. D. The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950. The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550. E. An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable. 8. Using the following year-end information for Breanna Boutique, calculate the current ratio and acid-test ratio for the boutique: $ 52,000 Short-term investment......asamass 12,000 Accounts Receivable 54.000 325,000 Prepaid expenses.. 17,500 Account payable.... 106,500 Other current payables... 25.000 A. 1.8 and 1 B. 1.97 and 1.52 2.73 and 1.52 D. E. 3.50 and 0.90 None of these