All responses must be recorded on the Scantron form provided. I. GAAP stands for a. Generally Accepted Auditing Procedures b. Generally Accepted Accounting Principles. e. Generally Accepted Auditing Principles d. Generally Accepted Accounting Procedures. 2. Adjusting entries are a. not necessary if the accounting system is operating properly b. usually required before financial statements are prepared. c. made whenever management desires to change an account balance. d. made to balance sheet accounts only. f 2/10, n/30. ier. If Greyson Manufacturing purchased switches at an invoice price of $4,000 and term o Half of the switches were labeled inaccurately and were returned immediately to the supp Greyson pay the remaining amount of the invoice amount be? a. $2,080. b. $1,960. c. $1,920. d. $1,200 3. within the discount period, what should that 4. A major disadvantage resulting from the use of bonds is that a. b. c. earnings per share may be lowered. taxes may increase. bondholders have voting rights. interest must be paid on a periodic basis. d. 5. On May 25, Yellow House Company received a $650 check from Grizzly Bean for services to be performed in the future. The bookkeeper for Yellow House Company incorrectly debited Cash for $650 and credited Accounts Receivable for $650. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should: a. debit Cash $650 and credit Unearned Service Revenue $650. b. debit Accounts Receivable $650 and credit Service Revenue $650. c. debit Accounts Receivable $650 and credit Cash $650. d. debit Accounts Receivable $650 and credit Unearned Service Revenue $650 The expense recognition principle matches a. customers with businesses. b. expenses with revenues. c. assets with liabilities. d. creditors with businesses. 6. Trendy Company issued $600,000 of 8%, 5-year bonds at l06. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date? a. $48,000 b. $7,200 c. $55,200 7, d. $40,800