please answer these except for question number 2
Times New Ro... 13 A- BELIE IU - obe X, X A. HIMALAR I 1.264 March 31, 2020 Choose the correct answer for the following multiple-choice examples. 1. The difference between the original cost of an asset and the balance in the accumulated depreciation account is... A. Contra value B. Book value C. Fixed asset value D. Kelly Blue Book value 2. Which is the next step in the accounting sycle? Step 1: Transactions are analyzed Step 2: Transactions are recorded in the journal. Step 3: Journal entries are recorded in the General Ledger Step 4: ????? A. Financial statements are prepared B. Closing entries are processed C. An unadjusted trial balance is prepared D. Adjusting entries are prepared 3. What is the result of subtracting Current Liabilities from Current Assets? A. Horizontal analysis B. Vertical analysis C. Working capital D. Depreciation 4. Under the principle, revenue earned in a certain period must be recorded in the same period as the related expenses A. Cost B. Deferral C. Expense recognition D. Matching The purpose of internal control is to: A. Safeguard assets. B. Process information accurately. C. Ensure compliance with laws and regulations D. All of the above - 1008 Words English (US) bCcDE Abbcode AaBbCcDc AaBbCcDE AaBb Kabbcode ABECEDAE ABCDE No Spacing Heading 1 Heading 2 Thia Subtitle Subtle Emph 6. The Act requires companies to maintain effective internal controls. A. SEC-FED B. Biden-Sanders C. Sarbanes-Oxley D. Socratic-Oxford 7. Which method of recording inventory cost is ideal for businesses that sell perishable products that have an expiration date, like medication and dairy products: A. Weighted Average Cost Method B. LIFO Method C. FIFO Method D. Specific Identification Method 8. A business buys equipment for $72,000. It depreciates the cost over three years. What is the entry that is recorded on the books every month? Description Debit Credit $2,000 A. Equipment expense Cash $2,000 B. Accounts Receivable 12,000 12,000 2,000 Fees Earned C. Depreciation Expense Accumulated Depreciation D. Depreciation Expense Accumulated Depreciation 2.000 24,000 24,000 9. During times of rising costs, which inventory control method would result in a higher cost of goods sold and a lower profit for businesses that don't need to qualify for financing. These businesses don't sell perishable products. A. FIFO B. Weighted Average Cost C. LIFO D. Specific Identification Acct 1007 test2 spring 20 + 1 Abbcc de Insert Design Layout References Mailings Review View Times New Ro 13 A- AA A BIU X, X A.2.ABEO 10. At the end of the current year, $13,680 of fees have been earned but have not been billed to or received from clients. The adjusting entry to record the accrued fees in which of the following: Credit Description A. Cash Debit $13,680 Fees Earned $13,680 B. Accounts Receivable Fees Earned 13,680 Cash Unearned Revenue 13,680 13.680 D. Unearned Revenue Fees earned 13,680 11. When closing the books, all temporary account balances (such as Income, and Expense) are transferred to this permanent account before the next accounting cycle: A. The Income Statement B. The Owner's Drawing Account C. The Owner's Capital Account D. The General Ledger 12. A(n) is an adjusting entry for revenue earned but not yet billed and for expenses incurred but not yet paid. A. Deferral B. Accrual C. Revenue D. Accumulated depreciation 107 1008 Words English (US) No Spacing Heading 1 Heading 2 Subtle Emph 13. Examples of control procedures are the rotation of duties and mandatory.. YRcations: A. True B. False 14. Which of the following is NOT an effective control for safeguarding inventory? A. Storing inventory in areas that are restricted to only authorized employees B. Locking high-priced inventory in cabinets C. Allowing access to the stockroom of high-priced inventory to all salesclerks D. Using two-way mirrors, cameras, security tags, and guards 15. Amounts the business owes to creditors that will be due within a short time (usually one year or less) are called A. Deferrals B. Current Liabilities C. Current Assets D. Prepaid expenses 16. A company's ability to convert assets into cash is known as solvency. A. True B. False 17. The following items are reported on a company's balance sheet... Cash $400,000 Accounts Receivable $250,000 Inventory $150,000 Accounts Payable $400,000 Determine the current ratio (Current ratio-Current Assets Current Liabilities) A. 1.0 B. 2.0 C. 1.625 D. 1.375 2 AMALARI 1 5 .716. 18. The following vertical analysis was performed for Klein's Auto Rental Klein's Auto Rental Income Statements For the years ended 12/31/19 and 12/31/18 2019 2018 Revenue earned 650,000 500,000 Operating Expenses 400,000 62% 300,000 60% Operating Income 250,000 38% 200,000 40% Would you conclude that the business' results show a: A. Positive trend B. Negative trend 8 Words English (US) AGBBCcDdE AalbceDd Ee ACDC ABC Debe Abede AaBbCcDc AaBbCcDdEe AaBb Subtitles Subda Emph Emphas MATCHING COLUMN 19. Prepaid Expense 20. Uscared Revenu A. Expenses incurred, but not yet paid B. Expenses paid in advance, that will be recognized over time C. Revenue carned but not yet billed D. Revenue received that will be earned in the future 21. Accrued Expense 22. Accrued Revenue On which financial statement would the following accounts appear? 23. Income Statement 24. Balance Sheet 25. Statement of Owner's Equity _ A. Office equipment B. Utilities expense C. T. Klein's Drawing Account Match each of the following dements of Internal Control with its related example: 26. Control Environment 27. Monitoring A. Rotation of Duties B. Management's overall Philosophy and Operating Style C. Observing Employee Behavior D. Evaluation of competitive threats 28. Control Procedures 29. Risk Assessment 30. Fiscal Year 31. Accounting Cycle 32. Closing process A. The transfer of temporary accounts to permanent accounts B. The process of adjusting the Trial Balance C. The annual accounting period chosen by the business D. The process that begins with analyzing transactions and ends with closing the books 33. Adjustment Process
