QUESTION 11

1. The FASB's conceptual framework's qualitative characteristics of accounting information include:

   	a.	Full disclosure.
   	b.	Relevance.
   	c.	Going concern.
   	d.	Historical cost.

3 points

QUESTION 12

1. At the beginning of the year, Beta Corporation paid $24,000 for one year's worth of property insurance on its warehouse. At the end of the first quarter, what would be the adjusting journal entry that would be recorded to recognize that 3 months of insurance had been used?

   Select the correct Journal entry.

   	a.	. db. Prepaid Insurance $6,0000 cr Insurance Expense $6,000
   	b.	. db. Insurance Expense $6,000 cr. Cash $6,000
   	c.	. db. Insurance Expense $6,0000 cr Prepaid Insurance $6,000
   	d.	. db. Prepaid Insurance $6,000 cr. Cash $6,000

3 points

QUESTION 13

1. Land was acquired in 2021 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:

   	a.	$40,000.
   	b.	$27,000.
   	c.	$46,000.
   	d.	$48,000.

3 points

QUESTION 14

1. Listed below are 5 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.

   - a. b. c. d. e.	Unqualified opinion
   - a. b. c. d. e.	Disclaimer
   - a. b. c. d. e.	Auditor's report
   - a. b. c. d. e.	Qualified opinion
   - a. b. c. d. e.	Adverse opinion

   a.	Independent and professional report about the fairness of the financial statements.
   b.	Given by an auditor when financial statements are presented fairly in conformity with GAAP.
   c.	Given by an auditor when there are substantial reporting errors and a qualified opinion is not appropriate.
   d.	Given by an auditor when information is insufficient to express an opinion.
   e.	Given by an auditor when there is a limitation of audit procedures or a departure from GAAP.

3 points

QUESTION 15

1. The following information is provided for a company.

   What is the amount of this company's Current Asserts?

   Accounts payable	$	15,000
   Buildings		80,000
   Cash		10,500
   Accounts receivable		9,500
   Salaries payable		4,500
   Retained earnings		47,500
   Supplies		40,000
   Notes payable (due in 18 months)		35,000
   Interest payable		3,000
   Common stock		35,000

   	a.	$20,000.
   	b.	$60,000.
   	c.	$140,000.
   	d.	$175,000.

3 points

QUESTION 16

1. Indicate whether the following portion of a transaction would have a debit or credit T-account entry. Advertising Expense.

   	a.	debit (dr.)
   	b.	credit (cr.)