Question 2 Not yet answered Marked out of 1.00 Flag question The income statement: a. may cover a period of time or only one day in time, like a snapshot photograph. O b. reports the results of operations since the inception of the business. O c. is not dated. O d. covers a defined period of time. Question 3 Not yet answered Marked out of 1.00 P Flag question An account will have a debit balance if: Select one: O a. it is a liability account. O b. the amount of the credits exceeds the amount of the debits. c. the account has more debit entries than credit entries. O d. the amount of the debits exceeds the . amount of the credits. Question 4 Not yet answered Marked out of 1.00 P Flag question Which statement about the journal is NOT true? Select one: a. The journal lists transactions in chronological order. O b. The journal entry shows a complete transaction in one place. O c. The journal entry lists debits before credits. O d. The journal entry shows the balance in each account. d. The journal entry shows the balance in each account. Question 5 Not yet answered Marked out of 1.00 P Flag question The payment for monthly rent of an office building in cash would include a: Select one: a. debit to Cash. O b. debit to Rent Expense. credit to Prepaid Rent Question 6 Not yet answered Marked out of 1.00 P Flag question A journal entry contains a debit to a liability account and a credit to a revenue account. This is an example of a(n): a. accrued expense. . b. unearned revenue. c. accrued revenue. d. deferred expense. Question 7 Not yet answered Marked out of 1.00 Flag question An example of a noncash transaction under the accrual method of accounting does NOT include: Select one: a. collecting cash from customers. b. depreciation expense. C. sales on account. d. accrual of expenses incurred, but not yet paid. Question 8 Not yet answered Marked out of 1.00 P Flag question On November 1 of the current year, Prepaid Rent was debited $5,400 for three months of rent, paid in advance. The amount of the adjusting entry on December 31 is: Select one: a. $0. b. $1,800. c. $5,400. O d. $3,600. Question 9 Not yet answered Marked out of 1.00 P Flag question IAS 1 requires entities to disclose, at a minimum: O a. four years of information. b. one year of information. C. two years of information. O d. three years of information. . Question 10 Not yet answered Marked out of 1.00 P Flag question The company's have/has the primary responsibility for establishing and maintaining a company's system of internal control. O a. internal auditors b. shareholders O c. top management O d. external auditors Question 11 Not yet answered Marked out of 1.00 P Flag question Calside Company signed a 15-month, $50,000, 6% note on June 1, 20x1. The amount of interest to be accrued on December 31, 20x1, is: a. $1,141. O b. $1,500. c. $3,000. d. $1,750. Question 12 Not yet answered Marked out of 1.00 Flag question Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them Select one: O a. is a good example of safeguarding the company's assets. O b. increases the potential for errors and fraud. O c. decreases the potential for errors and fraud. O d. is an example of good internal control. Question 13 Not yet answered Marked out of 1.00 Flag question Which one of the following is not an objective of a system of internal controls? Select one: a. Overstate liabilities in order to be conservative. b. Reduce the risks of errors. C. Enhance the accuracy and reliability of accounting records. O d. Safeguard company assets. Question 14 Not yet answered Marked out of 1.00 P Flag question Given the following data, what is the value of the ending inventory as determined by the LIFO method? Sales revenue 300 units at $15 per unit Purchases 240 units at $10 per unit Beginning inventory 120 units at $9 per unit Select one: a $2,880. b. $540. O c. $600. O d. $2,940. Question 15 Not yet answered Marked out of 1.00 Flag question The credit terms offered to a customer by a business firm are 2/10, n/30, which means that a. two sales returns can be made within 10 days of the invoice date and no returns thereafter. O b. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. c. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. O d. the customer must pay the bill within 10 days. Time left 0:59:03 Question 17 Not yet answered Marked out of 1.00 P Flag question If a fully depreciated plant asset is still used by a company, the Select one: a. accumulated depreciation account is removed from the books but the asset account remains. O b. estimated remaining useful life must be revised to calculate the correct revised depreciation. O c.asset is removed from the books. O d. asset and the accumulated depreciation continue to be reported on the statement of financial position without adjustment until the asset is retired. Question 18 Not yet answered Marked out of 1.00 P Flag question Morton Corporation purchased equipment for $46,000. Morton also paid $1,200 for freight and insurance while the equipment was in transit. Installation cost amounted to $850. Maintenance cost for the first year of use was $1,000. How much should Morton Corporation capitalize as the cost of the equipment? Select one: a. $46,000. O b. $46,850. O c. $49,050. O d. $ 48,050. Question 19 Not yet answered Marked out of 1.00 Flag question Hawthorne Company sold an old computer for $3,000 cash. The computer cost $45,000 and had accumulated depreciation through the date of sale totaling $42,000. The company will recognize: Select one: a. a loss of $3,000. b. a gain of $3,000. c. a loss of $45,000. . O d. neither a gain nor a loss. Question 20 Not yet answered Marked out of 1.00 p Flag question On 1 January 20X7, Heidi's Pet Boutique purchased a television for the dog sitting area which cost $8,000. It had an estimated useful life of 5 years and a residual value of $1,000. What is the amount of depreciation expense for 20X8, the second year of the asset's life using the double declining-balance method? Select one: O a. $2,080. O b. $3,200. O c. $1,920. O d. $8,000