Assignment: Ch 03 Quiz MC

MC Qu. 132 A post-closing trial balance includes:

A post-closing trial balance includes:

→	All ledger accounts with balances, none of which can be temporary accounts.
	All ledger accounts with balances, none of which can be permanent accounts.
	All ledger accounts with balances, which include some temporary and some permanent accounts.
	Only revenue and expense accounts.
	Only asset accounts.

MC Qu. 109 An adjusting entry was made on December ...

An adjusting entry was made on December 31, 2014 to accrue a salary expense of $1,200. Which of the following entries would be prepared to record the next payment of salaries on January, 2015 in the amount of $3,000?

→

$3,000 (total) - $1,200 (accrued) = $1,800 expense

MC Qu. 81 A publishing company records the...

A publishing company records the subscriptions paid in advance by its customers in an account called Unearned Subscription Revenue. If the company fails to make the end-of-period adjusting entry to record the portion of the subscriptions that have been earned, one effect will be:

	An overstatement of equity.
→	An overstatement of liabilities.
	An understatement of assets.
	An understatement of liabilities.
	An overstatement of assets.

MC Qu. 59 Western Company has an annual reporting...

Western Company has an annual reporting period that runs from July 1 through
June 30. Based on this information, which of the following is a true statement?

	Western probably has little seasonal variation in their sales.
	Western has violated the time period principle.
	Western must prepare financial statements as of December 31 each year.
	Western has adopted a fiscal year.
	Western does not have an accountant.

MC Qu. 151 Based on the following information, what...

Based on the following information, what would be the ending balance in the Retained Earnings account, assuming all accounts have a normal balance?

  

	$15,847
	$13,718
	$13,155
	$13,284
→	$13,847

Total debits: $6,754 + $13,733 + $2,625 + $37,153 + $14,535 + $2,000 + $3,673 + $6,642 + $560 + $280 = $87,955
Given credits: $6,463 + $54,490 + $13,718 = $74,671
Total debits $87,955 - Given credits $74,671 = RE $13,284 missing credit (beginning bal)
$13,284 + $13,718 - $3,673 - $6,642 - $560 - $280 - $2,000 = $13,847 (ending bal)

MC Qu. 153 Based on the following information...

Based on the following information, determine the current assets, assuming all accounts have a normal balance?

  

	$74,800
	$37,647
	$60,265
→	$23,112
	$60,953

$6,754 + $13,733 + $2,625 = $23,112

MC Qu. 120 The adjusted trial balance contains...

The adjusted trial balance contains information pertaining to:

	Asset accounts only.
	Balance sheet accounts only.
	Income statement accounts only.
	All general ledger accounts.
	Revenue accounts only.

MC Qu. 66 The approach to preparing financial...

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

	Cash basis accounting.
	The matching principle.
	The time period principle.
	Accrual basis accounting.
	Revenue basis accounting.

MC Qu. 144 The Unadjusted Trial Balance columns of a...

The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns contain entries for the following:

Office supplies used during the period, $1,200.
Expiration of prepaid rent, $700.
Accrued salaries expense, $500.
Depreciation expense, $800.
Accrued service fees receivable, $400.
The Adjusted Trial Balance columns total is:

	$80,400
	$84,000
→	$85,700
	$85,900
	$87,600

MC Qu. 143 Which of the following errors would cause...

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

Entering an asset amount in the Income Statement Debit column.

Entering a liability amount in the Income Statement Credit column.

Entering an expense amount in the Balance Sheet Debit column.

→

Entering a revenue amount in the Balance Sheet Debit column.

Entering a liability amount in the Balance Sheet Credit column.