Assignment: Ch 02 Quiz-MC

MC Qu. 147 Which financial statements are prepared for...

Which financial statements are prepared for a period of time?

	Income statement, statement of retained earnings, balance sheet and statement of cash flows.
	Balance sheet.
	Income statement, statement of retained earnings, and statement of cash flows.
	Income statement and balance sheet.
	Statement of retained earnings and statement of cash flows.

MC Qu. 135 A $130 credit to Office Equipment was...

A $130 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?

	Office Equipment, understated $130; Fees Earned, overstated $130.
	Office Equipment, understated $260; Fees Earned, overstated $130.
→	Office Equipment, overstated $130; Fees Earned, overstated $130.
	Office Equipment, overstated $130; Fees Earned, understated $130.
	Office Equipment, overstated $260; Fees Earned, understated $130.

MC Qu. 125 Which of the following statements are true?

Which of the following statements are true?

	If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions.
	The trial balance is a book of original entry.
	Another name for trial balance is chart of accounts.
→	The trial balance is a list of all accounts from the ledger with their balances at a point in time.
	The trial balance is another name for the balance sheet as long as debits balance with credits.

MC Qu. 105 On November 30, a company had an Accounts...

On November 30, a company had an Accounts Receivable balance of $5,100. During the month of December, total credits to Accounts Receivable were $76,000 from customer payments. The December 31 Accounts Receivable balance was $43,000. What was the amount of credit sales during December?

	$8,100
	$27,900
	$70,900
	$76,000
→	$113,900

Normal balance = debit
$5,100 - $76,000 + credit sales = $43,000
Credit sales = $113,900

MC Qu. 87 During the month of February, Hoffer Company...

During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance?

	$700
	$1,100
→	$2,900
	$0
	$4,300

Beginning balance + $7,500 - $8,600 = $1,800
Beginning balance = $2,900

MC Qu. 106 The Fireside Country Inn is a very popular...

The Fireside Country Inn is a very popular destination for tourists. The Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue?

	On the date the reservation is received.
	On the date the money for the reservation is received.
→	On the date the guests stay in the inn.
	On the date the guests pay the remaining 80 percent due.
	Once all cash has been received.

MC Qu. 122 What would be the account balance in the ...

What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance?

  

	$17,400 credit
	$14,400 credit
	$14,400 debit
→	$15,900 credit
	$15,900 debit

$4,200 + $3,500 + $2,200 + $6,000 = $15,900 credit normal balance

MC Qu. 82 Of the following accounts, the one that...

Of the following accounts, the one that normally has a credit balance is:

	Cash
	Office Equipment
→	Sales Salaries Payable
	Dividends
	Sales Salaries Expense

MC Qu. 66 Which of the following statements is correct...

Which of the following statements is correct?

	When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.
→	Promises of future payment are called accounts payable.
	Increases and decreases in cash are always recorded in the retained earnings account.
	An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
	Liabilities include accounts receivable.

MC Qu. 81 An account balance is:

An account balance is:

	The total of the credit side of the account.
	The total of the debit side of the account.
	The difference between the total debits and total credits for an account including the beginning balance.
	Assets = Liabilities + Equity.
	Always a credit.