Remaining Time: 1 hour, 03 minutes, 06 seconds. Question Completion Status: QUESTION 11 Cash dividends are declared and paid to the stockholders of the corporation. How will this transaction affect the components of the accounting equation? 0000 Increase an asset, increase a liability Decrease an asset, decrease a liability Increase an asset, increase equity O Decrease an asset, decrease equity Increase ne asset and decrease another asset QUESTION 12 Which of the following statements is correct concerning the accrual basis of accounting? The accrual basis does not consider the revenue recognition principle. The accrual basis must follow the revenue recognition principle but not the expense recognition principle. The accrual basis uses the adjusting process to recognize revenues when earned and to match expenses with revenues. The accrual basis recognizes revenues when earned and records expenses when cash is paid. The accrual basis is the same as the cash basis of accounting. 4 pc 4 pol 4 point QUESTION 13 At the end of the fiscal year, an adjusting entry was made for accrued salaries of $500. On the first day of the following year, the adjusting entry was reversed. The salaries for one week, $1,250, were paid on the first Friday of the following year. The entry to record paying the salaries expense for the week would be which of the following? Salaries Exp, debit, $750; Salaries Payable, debit, $500; Cash, credit, $1,250 Salaries Exp., debit, $500; Salaries Payable, debit, $750; Cash, credit, $1,250 Salaries Expense, debit, $1,250; Cash, credit, $1,250 Salaries Expense, debit, $1,250; Salaries Payable, credit, $1,250 None of the journal entries shown above Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers MacBook Air 00 PIL DD Remaining Time: 1 hour, 02 minutes, 55 seconds. Question Completion Status: None or the journar entries shown above QUESTION 14 After the closing procedure is complete, which of the following proves the equality of debits and credits? Income statement Account form balance sheet Post-closing trial balance Work sheet All of the above QUESTION 15 Which of the following methods of assigning costs to both inventory and cost of goods sold are in conformity with generally accepted accounting principles (GAAP)? Specific identification FIFO and LIFO Weighted average All of the above None of the above QUESTION 16 Abba Company maintains a perpetual inventory system and uses the last-in, first out (LIFO) method of assigning costs. Purchases and sales of inventory during the period are as follows: Activity beginning inventory First purchase Ficat anle Second purchase acced s Units Unit Cost 10 55 510 411 20 40 412 Click Save and Submit to sove and submit. Click Save All Answers to save all answers MacBook Air 4 p Save All Answers minutes, 46 seconds. Question Completion Status: QUESTION 16 Abba Company maintains a perpetual inventory system and uses the last-in, first out (LIFO) method of assigning costs. Purchases and sales of inventory during the period are as follows: Activity Beginning inventory First purchase First sale Second purchase Second sale Third purchase Units 10 Unit Cost $10 35 $11 20 40 $12 35 25 $13 What is the value of its ending inventory? $485 $555 $520 $540 None of the above QUESTION 17 The Supplies account has a zero balance at the end of the accounting period. The unadjusted Supplies Expense account has a balance of $460. The total value of supplies on hand is $40. The correct adjusting entry for this situation will be O Supplies Expense, debit, $40; Supplies, credit, $40. O Supplies Expense, debit, $420; Supplies, credit, $420. O Supplies, debit, $460; Supplies Expense, credit, $460. Supplies, debit, $40; Supplies Expense, credit, $40. Supplies, debit, $40; Cash, credit, $40. QUESTION 18 Click Save and Submit to save and submit. Click Save All Answers to save all answers MacBook Air 4 Save All Answers