The balance for prepaid insurance before adjustment is OMR 15,500. Insurance expires at the rate of OMR 2,500 per month. What is the proper adjusting entry at June 30?

Select one:

a. Prepaid Insurance............................................................ 13,000

Insurance Expense........................................................ 13,000

b. Insurance expense ....................................................... 2,500

Prepaid Insurance ..................................................... 2,500

c. Insurance Expense........................................................... 13,000

Prepaid Insurance......................................................... 13,000

d. No entry is required.

e. Insurance Expense........................................................... 15,500

Prepaid Insurance......................................................... 15,500

...............

The objective of financial reporting places most emphasis on:

Select one:

a. Decision-usefulness.

b. Reporting to capital providers.

c. None of the above.

d. Providing specific guidance related to specific needs.

...........

1. Using posting, the total for the Cash account should be:

Posting and trial balance information:

a. Accounts Payable..................................................................... 1,830

Cash............................................................................ 1,830

b. Accounts Receivable................................................................ 3,080

Cash............................................................................ 3,080

c. Accounts Receivable................................................................ 10,380

Accounts Payable.............................................. 10,380

d. Cash ................................................................................... 7,380

Accounts Payable..................................................................... 1,830

Accounts Receivable.................................................... 9,210

Using posting, the total for the Cash account should be:

Select one:

a. 4,250

b. 7,380

c. 2,470

d. None of the answers are correct

e. 6,720

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The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year. An insurance policy of OMR 8,000 was paid on April 1, 2019, and was charged to Prepaid Insurance. The policy covers a 24-month period beginning April 1, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Select one:

a. Insurance Expense ................................................ 3,000

Prepaid Insurance ................................................. 3,000

b. No entry is required.

c. Insurance Expense . 6,000

Insurance Payable......................................................... 6,000

d. None of the answers are correct

e. Insurance Expense ................................................ 6,000

Prepaid Insurance .................................................... 6,000

........

Which of the following adjusting entries will cause an increase in revenues and a decrease in liabilities?

Select one:

a. Entry to record an accrued revenue.

b. Entry to record the consumed percentage or part of an expense paid in advance and initially recorded as an asset.

c. Entry to record the earned percentage or part of revenue received in advance and initially recorded as unearned revenue.

d. Entry to record an accrued expense.

e. None of the answers are correct

.......

The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year.

The Office Supplies on Hand showed a balance of OMR 3,500 at the beginning of 2019. Supplies costing OMR12,000 were purchased during 2019 and debited to the asset account. Supplies of OMR 2,200 were on hand at December 31, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Select one:

a. Office Supplies ............................................................. 3,500

Cash......................................... 3,500

b. Supplies Expense ............................................................. 13,300

Office Supplies........................................ 13,300

c. Supplies Expense ............................................................. 12,000

Office Supplies........................................ 12,000

d. Supplies Expense ............................................................. 1,200

Office Supplies........................................ 1,200

e. None of the answers are correct

.........

Identify the appropriate qualitative characteristic(s) being described in the statements below.

The amounts and descriptions in financial statements should agree with the elements or events that these amounts and descriptions purport to represent due to this fundamental quality of information.

Select one:

a. Materiality

b. Relevance

c. Faithful representation

d. None of the answers are correct

e. Comparability