choose the right answer
choose the right answer
choose the right answer
choose the right answer
choose the right answer
choose the right answer
3. 1. External users of financial accounting information include all of the following except: a Investors. b. Labor uniong. c Line managers. d General publice 2 Water world Boat Shop purchased a truck for $12,000, making a down payment of 57,000 cash and signing a $5,000 note payable due in 60 days. As a result of this transaction 2. Total assets increased by $5,000.- b. Total liabilities increased by $5,000.- c. This transaction had no immediate effect on the owners' equity in the business. d. From the viewpoint of a short-term creditor, this trans- action makes the business more liquid. . Indicate all correct answers. In the accounting cycle: 2. Transactions are posted after they are journalized. b. A trial balance is prepared after journal entries have been posted. c. The Retained Earnings account is not shown as an up-to-date figure in the trial balance. d. Journal entries are posted to appropriate ledger accounts 4. Sunset Tours has a $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes: 2. A debit to the Cash Received account of $2,100.- 6. A credit to the Accounts Receivable account of $2,100.4 C. A debit to the Cash account of $1,400.- d. A debit to the Accounts Receivable account of $1,400. 10. On March 1, Latours Products (a U.S. firm) purchased manufacturing inputs from a Mexican supplier for 20,000 pesos, payable on June 1. The exchange rate for pesos an March 1 was $0.17. If the exchange rate increases to $0.19 on June 1, what amount of gain or loss would be reported by Latan related to the currency exchange? a. $400 gain b. $200 loss, c. $400 loss. d. $200 gain. 11. On January 1, a German company purchased merchandise from a U.S. firm for $50,000, payable on March 1. The exchange rate for the euro on January 1 was $1.10. If the exchange rate increases to $1.12 on March 1, what amount of gain or loss would the U.S. firm report related to currency fluctuations? a. $1,000 gain b. $1,000 105. 12. Before month-end adjustments are made the January 31 trial balance of Rover Excursions contains revenue of $27,900 and expenses of $17,340. Adjustments are necessary for the following items: Depreciation for January, $1,440- Portion of fees collected in advance earned in January, $3,300- Portion of prepaid rent applicable to Jamuary, 52,700 Fees earned in January, not yet billed to customers, $1,950 Net income for January is: 2. $10,560 b. $13,070 c. $7,770 d. Some other amount 13. Marietta Corporation uses a perpetual inventory system. All of its sales are made on account. The company sells merchandise costing $3,000 at a sales price of 54,300. In recording this transaction, Marietta will make all of the following entries except: a. Credit Saler, $4,300.- b. Credit Inventory, $3,000.- c. Debit Cost of Goods Sold $3,000.- d Debit Accounts Receivable. $4,300. 14. A transaction caused a $15,000 increase in both total assets and total liabilities. This transaction could have been a An asset with a cost of $15,000 destroyed by fire. b. Repament of a $15,000 bank loan. c. Purchase of a delivery truck for 515,000 on credit d. Collection of a $15,000 account receivable. 15. Which of the following explaing the debit and credit rules relating to the recording of revenue and expenses? 2 Expenses appear on the left side of the balance sheet and are recorded by debits, revenue appears on the right side of the balance sheet and is recorded by credits. b. Expenses appear on the left side of the income statement and are recorded by debits; revenue appears on the right side of the income statement and is recorded by credite. C. The effects of revenue and expenses on owners' equity. The realization principle and the matching principle
