QUESTION 1

A contra-account:

		increases the original value of the account to which it relates.
		always appears in the same column of the trial balance as the account to which it relates.
		offsets, or reduces, another account.
		reduce the asset to its fair value.

4 points

QUESTION 2

At the end of the accounting period:

all accounts are closed.

temporary accounts are closed; permanent accounts are not.

permanent accounts are closed; temporary accounts are not.

only accounts with a credit balance are closed.

QUESTION 4

If inventory is sold with terms of FOB destination, the goods belong to the seller while in transit.

True

False

5 points

QUESTION 5

Maya Company's purchase of 100 shares of Labrador Inc. common stock would be reported as a financing activity on its statement of cash flows.

True

False

QUESTION 7

Assuming no additions, replacements, or extraordinary repairs, the book value of a long-lived asset declines over time.

True

False

QUESTION 10

Fixed assets are ______ and are found on the ______:

		long-lived tangible assets; balance sheet
		long-lived intangible assets; balance sheet
		current tangible assets; balance sheet
		current intangible assets; income statement

4 points

QUESTION 11

Which of the following items is not a specific account in a company's chart of accounts?

		Income Tax Expense
		Sales Revenue
		Unearned Revenue
		Net Income