Hi need help with Quiz #2 ADMS 2500

Different balance sheet items employ different valuation methods. Which valuation application is not generally accepted?

Machinery is stated at its historical cost less the estimated amount of benefits consumed to date

None of the others alternatives are correct

Cash is received for goods to be delivered next month, the liability is stated at the amount of cash received and not the cost of foods to be delivered

Common share capital is stated at the amount at which it was originally sold

A major line of inventory has increased in value substantially above its cost and has been restated to its current replacement cost

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation:

SeptemberDescriptionAmount24Telephone bill for $150 was received for the month of September - payment due October 5th$150

Increase and decrease assets

Increase assets and increase Owner's equity

Decrease assets and decrease liabilities

Increase assets and increase liabilities

None of the others alternatives are correct

In the context of financial accounting, articulation refers to:

how well written (how articulate) the financial statements are

None of the above

that the financial statements are interconnected (numbers from one are necessary to complete another)

the need for footnotes to make the financial statements complete and meaningful

the fact that the financial statements relate to a specific time frame

The statement which best embodies the concept of "Matching" would be:

None of the others alternatives are correct

Ensuring there is a liability to match each asset on the balance sheet

Getting the costs associated with generating a revenue stream in the same income statement as that revenue stream

Matching ensures that each accounting transaction is matched with an underlying accounting principle.

Matching ensures that that each balance sheet account is paired with an income statement account

Using the following information:

Non Current Assets$100,000Current Assets$100,000Long-term Liabilities$100,000Current Liabilities?Shareholder's Equity?

the balance of shareholder's equity must be less than total assets

the balance of current liabilities must be zero

total liabilities must equal $200,000

shareholder's equity must be $100,000

none of the above

learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation:

SeptemberDescriptionAmount19 & 20Fourth event organized and delivered. Provided one of the activities of a corporate team building extravaganza weekend. The contract signed says the payment will be effective in 30 days with a cheque.$2,000

Increase assets and increase Owner's equity

Increase assets and increase liabilities

Increase and decrease assets

Decrease assets and decrease liabilities

None of the others alternatives are correct

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation:

SeptemberDescriptionAmount6Second event organized and delivered as part of a series of activities organized by a charity to raise funds. One third is paid in cash while the rest will be paid by the Charity Organization on October 5th.$3,000

None of the others alternatives are correct

Increase assets and increase liabilities

Increase assets and increase Owner's equity

Decrease assets and decrease liabilities

Increase and decrease assets

At the beginning of the year, net income should be equal to:

Some other amount

$0

the ending net income from the previous year before income tax expense

the ending net income from the previous year.

the ending retained earnings from the previous year.

The Pay Pac Corporation failed to record the purchase of inventory on account at the end of 20X1. In which of the following ways is the balance sheet misstated?

Assets, liabilities, and shareholders' equity are all correctly stated

Assets and liabilities are both understated

Assets are understated and liabilities are overstated

None of the others alternatives are correct

Assets and shareholders' equity are both understated