Question
Question 5 (1 point: 0.25 points each question 5.1-5.4). Multiple Choice Problem Required: Answer IN THE ANSWER SHEET the following questions by answering A, B,
Question 5 (1 point: 0.25 points each question 5.1-5.4). Multiple Choice Problem
Required: Answer IN THE ANSWER SHEET the following questions by answering A, B, C or D in the appropriate cell.
1. Wages owed to the employees would be classified as a(n):
A) Liability on the balance sheet
B) Asset on the balance sheet
C) Equity on the balance sheet
D) They would not appear on a financial statement
2. If liabilities increase by $7,000 during a given period and stockholders' equity decreases
by $3,000 during the same period, assets must have
A) Increased by $10,000
B) Increased by $4,000
C) Decreased by $10,000
D) This cannot be determined with the given information
3. A company paid 3 months rent in advance amounting to $6,000. At the end of the first
month, the proper entry would include a
A) Credit to Prepaid Rent for $6,000 |
B) Debit to Rent Expense for $6,000 |
C) Credit to Rent Expense for $2,000 |
D) Credit to Prepaid Rent for $2,000 |
4. A company is using the periodic system. It is known that initial inventory was $48,000, that ending inventory is $36,000 and that the period purchases were $68,000. What is the cost of goods sold to be reported in a period?
A) 80,000 B) 56,000 C) 16,000 D) None of the previous is correct
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