Accounting Question

The primary basis for the classification of assets and liabilities in the balance sheet is: Select one: a. Profitability O b. Tangibility O c. Liquidity 1. O d. Degree of risk 2. A spreadsheet, prepared either manually or electronically and used by accountants to organise information, is known as a w Harry Company uses cleaning supplies on a daily basis. Under the accrual basis of accounting these supplies would be an expense of the period in which they are: Select one: O a. Ordered O b. Received O c. Paid for 3. O d. Used Tan Traders received a $750 advance payment from a customer for work to be carried out in the next accounting period. The accounting entry to initially record the $750 is: Select one: a. Debit unearned income $750; credit bank $750 b. Debit bank $750; credit unearned income $750 c. Debit bank $750; credit creditor $750 4. O d. Debit income earned $750; credit bank $7505. 6. The c amount of an asset is its original cost less accumulated depreciation. Uneamed income is classied as a in the balance sheet as. if the income is not earned. it may need to be repaid. Sampras Company purchased a machine for $30 000 on 1 January 2010 with an estimated life of 5 years and a residual value of zero. The straight-line method of depreciation ls used. What Is the carrying value of the machine on the :51 December 2011 in the balance sheet of Sampras company? Select one: A a. 530 000 ' ' b. 52h 000 C. $18 000 "" d. 512 000 on 1 July 2011 Tan Traders paid 5600. representing a unto-year insurance premium. The 5600 was Initially recorded in the Insurance expense account. Mter adjustment at 31 December 2012. the close of the annual accounting period: Select one: a. Insurance expense in the income statement is $600 and prepaid insurance in the balance sheet is so b. Insurance expense in the Income statement Is 5150 and prepaid Insurance in the balance sheet IS 51150 c. Insurance expense in the income statement is $160 and prepaid insurance in the balance sheet is 50 d. Insurance expense in the Income statement is $300 and prepaid insurance in the balance sheet is $150 If total liabilities are 5120 000. total assets are 5280 000 and total share capital is $110,000, the amount of retained earnings is: Select one: f\" a. $20 000 5 b. 5110 000 \"T C. S1IIO 000 A d. $160 000