Please provide detailed steps & explanation.

1. In the annual report, where would a financial statement reader find out that

whether the companys financial statements give a fair depiction of its financial

position and operating results?

A. Income Statement

B. the statement of stockholders equity

C. Balance sheet

D. Auditors report

2. Which accounting assumption assumes that an enterprise will continue in

operation long enough to carry out its existing objectives and commitments?

A. Going concern assumption

B. Economic entity assumption

C. Periodicity assumption

D. Monetary unit assumption

3. An entity shall select and apply its accounting policies consistently for similar

transactions unless valid reasons are provided. This is used to ensure the characteristic

of

A. Verifiability

B. Timeliness

C. Comparability

D. Understandability

4. Night Cinema has the regulation that the employee selling movie tickets are not

also account for cash. What kind of control activity does Night Cinema use?

A. Physical control

B. Separation of duties

C. E-commerce control

D. Proper authorization

5. Apple Limited offers terms of 1/10, n/30 sales discount to its customers. On 4

April, Apple Limited provides $1,000 service to Lucy in credit. Lucy paid on 25

April. Which of the following accounting treatment is NOT right?

A. 4 April: a debit on accounts receivable.

B. 4 April: a credit on sales.

C. 25 April: a debit on sales discount.

D. 25 April: a debit on cash

6. Which of the following computations would be used to compute Net Revenue?

A. Total Revenue + Accounts Receivable Sales Discounts Sales Allowances

B. Total Revenue Trade Discounts Sales Allowances Sales Discounts

C. Total Revenue Sales Discounts Sales Allowances

D. Total Revenue Trade Discounts Sales Allowances

7. During the year, the cost of inventories continually rise. Which cost method will

result in the lowest cost of goods sold?

A. Specific identification

B. First-in, first-out

C. Last-in, first-out

D. Weighted-average cost