Question : 41.When an adjusting entry that recognizes accrued interest revenue recorded, a.assets : 1253619

Accounting

41.When an adjusting entry that recognizes accrued interest revenue is recorded,

a.assets increase and liabilities increase.

b.shareholders’ equity increases and liabilities decrease.

c.assets decrease and liabilities decrease.

d.shareholders’ equity and assets increase.

42.All of the following statements are true except:

a.All economic events recorded in financial statementsmust be relevant.

b.All economic events recorded in financial statements must affect liabilities.

c.All economic events recorded in financial statements must be objectively measurable in monetary terms.

d.All economic events recorded in financial statements must maintain the equality of the accounting equation.

43.If the balance sheet is in balance,

a.assets must equal liabilities.

b.assets must exceed liabilities.

c.transactions recorded must be right.

d.errors may still exist.

44.Items and rights that a company acquires through objectively measurable transactions that can be used in the future to generate economic benefits are

a.liabilities.

b.assets.

c.contributing capital.

d.revenues.

45.Scottsdale Corp. received several invoices in the mail for oil changes performed on its company trucks during the last week of April. The total of the invoices was $800 and all are due on May 13. What entry should Scottsdale make at April 30 as a result of receiving the invoices?

a.Debit Accounts Receivable and credit Cash for $800.

b.Debit Maintenance Expense and credit Accounts Payable for $800.

c.Debit Maintenance Expense and credit Cash for $800.

d.Debit Prepaid Maintenance and credit Cash for $800.

46.Shareholders’ equity increases because of two primary reasons, which are the

a.sale of stock and the earning of income.

b.earning of income and the payment of dividends.

c.payment of dividends and payment of expenses.

d.collection of cash from customers and the payment of expenses to creditors.

47.Dobson Company sold stock for cash and received cash for services performed during the current month. Which of the following summarizes the income statement impact of these transactions for the current month?

a.Both the sale of stock and the performance of services increased revenues for the company.

b.Only the performance of services caused an increase in revenues.

c.Only the performance of services caused a decrease in revenues.

d.Only the sale of stock caused revenues to increase.

48.Subdivisions of assets, liabilities, and shareholders’ equity are called

a.revenues.

b.accounts.

c.contributed capital.

d.journals.

49. Which of the following sets of accounts is closed at the end of an accounting period?

a.Interest Expense, Interest Payable, Interest Receivable

b.Unearned Revenue, Sales Revenue, Interest Revenue

c.Interest Expense, Rent Revenue, Dividends

d.Retained Earnings, Sales Revenue, Unearned Revenue

50.The statement of cash flows provides information about

a. operating activities.

b.financing activities.

c.investing activities.

d.all of the above.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.