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

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.