In the buyer's records, the purchase of merchandise on account would:
A.
Increase assets and increase expenses. B. Increase assets and increase liabilities. C.
Increase liabilities and increase paid-in capital. D.
Have no effect on total assets.
A journal entry recording an accrual:
Answer A.
Results in a better matching of revenues and expenses. B.
Will involve a debit or credit to cash. C.
Will affect balance sheet accounts only. D.
Will most likely include a debit to a liability account.
Which of the following is not a transaction to be recorded in the accounting records of an entity?
Answer
A.
Investment of cash by the owners. B.
Sale of product to customers. C.
Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive. D.
Receipt of services from a "quick-print" shop in exchange for the promise to provide advertising design services of equivalent value.`
The accounting concept or principle applied when an allowance is provided for estimated uncollectible accounts receivable is:
Answer
A.
A. consistency. B. matching revenue and expense. C. original cost. D. objectivity Accounts receivable are reported at:
Answer A.
Net realizable value. B.
Historical cost. C.
Weighted average cost. D.
Market value
The income statement shows amounts for:
Answer A. revenues, expenses, losses, and liabilities. B. revenues, expenses, gains, and market value per share. C. revenues, assets, gains, and losses. D. revenues, gains, expenses and losses.
The accounting concept/principle being applied when an adjustment is made is usually:
Answer
| A. | matching revenue and expense. | | B. | consistency. | | C. | original cost. | | D. | materiality |
