Question Completion Status QUESTION 1 Which of the following statements is not true? Interim financial reports can be based on one-month or three- month Property, plant, and equipment are referred to as plant assets. The fiscal year is any 12 consecutive months (or 52 weeks) used by a business as its annual accounting period. An income statement reports revenues earned less expenses incurred. An unadjusted trial balance shows the account balances after they have been revised to reflect the effects QUESTION 2 wages of $28,000 on December 31. This oversight would A company made no adjusting entry for accrued and unpaid Have no effect on net income Understate assets by $28.000 Overstate net income by $28.000 Overstate assets by $28.000 Understate net income by $28,000. QUESTION 3 On October 1, Goodwell Company rented warehouse space to a tenant for $2.500 per month and received $12.500 for five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company's annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment should be: $12.500. $10.000 $2.500 $5.000. $7.500. Question Completion Status QUESTION 9 All of the following regarding the current ratio are true except Current ratio can reveal challenges in covering short-term obligations if it is less than 1. Current ratio helps to assess a company's ability to pay its debts in the near future. Current ratio is calculated by dividing current assets by current liabilities. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit Current ratio can affect a creditor's decision about whether to lend money to a company. QUESTION 10 On December 1, Simpson Marketing Company received $3,600 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include: a debit to Unearned Fees for $1,800. a credit to Earned Fees for $3,600. a debit to Earned Fees for $1.800. a debit to Earned Fees for $3.600. a credit to Unearned Fees for $1,800. QUESTION 11 Which of the following statements about a company's operating cycle is not true Most companies use a one-year period to classify current and noncurrent items. Non-current items are those expected to come due within one year or the company's operating cycle. The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services Most operating cycles are less than one year. Current items are those expected to come due within one year or the company's operating cycle, whichever is longer Question Completion Status: QUESTION 4 An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded True False QUESTIONS Accrued expenses at the end of one accounting period are expected to result in cash payments in a future period. True False QUESTION 6 Statements that show the financial statements as if proposed transactions had already occurred are called: Temporary statements. Pro forma statements. Interim statements. Simplified statements. Professional statements QUESTION 7 was paid in advance on on December 31. Winter Company Prepaid Rent account had balance before adjustment of $6.000. Three months day of the lease term. The adjusting entry needed on December 31 Debit Cash $2.000 credit Prepaid Rent $2.000, Dehit Rent Finance 56 000 credit Anun Parah 56 000
