Question :
81. Which of the following accounts would most likely not require : 1228497
81. Which of the following accounts would most likely not require an adjusting entry in the future?
A. Unearned subscriptions revenue
B. Office supplies
C. Utilities payable
D. Prepaid rent
82. On December 31, 2011, The Bates Company’s revenues total $300,000 and expenses total $160,000 before consideration of the following:
? Accrued wages total $11,000;
? Accrued revenues total $36,000;
? Depreciation expense is $17,000;
? Rental revenue of $9,000 was earned; the rent was prepaid by a tenant and was recorded by Bates as unearned rent revenue;
? The income tax rate is 40%.
What is Bates’ net income after consideration of the above information?
A. $94,200
B. $157,000
C. $140,000
D. $88,800
83. Which of the following statements is correct?
A. Balance sheet accounts are permanent accounts and do not retain their balances from one period to the next.
B. Balance sheet accounts are temporary accounts and do retain their balances from one period to the next.
C. Income statement accounts are permanent accounts and do retain their balances from one period to the next.
D. Income statement accounts are temporary accounts and do not retain their balances from one period to the next.
84. Which of the following will result in an increase in earnings per share?
A. Accruing expenses at year-end.
B. Selling additional shares of common stock during the year.
C. Accruing revenue at year-end.
D. Receiving cash from a tenant which was recorded as unearned revenue.
85. Which of the following statements regarding earnings per share is not correct?
A. It can be reported on the income statement.
B. The numerator is net income.
C. The denominator is the average number of shares of common stock outstanding.
D. It doesn’t have to be disclosed on the income statement or the notes to the financial statements.
86. Which of the following statements does not correctly describe the relationship between the income statement and the ending retained earnings balance?
A. Net income increases the ending balance of retained earnings.
B. A net loss decreases the ending retained earnings balance.
C. A net loss does not affect the ending retained earnings balance.
D. Net income and net loss both affect the ending retained earnings balance.
87. Which of the following statements regarding the balance sheet is false?
A. Property and equipment is reported at book value.
B. Assets are reported in the order of liquidity.
C. Current liabilities are obligations to be paid with current assets.
D. It is a period of time financial statement.
88. A calendar year reporting company preparing its annual financial statements should use the phrase “As of December 31, 2011” in the heading of which financial statements?
A. On all of the required financial statements.
B. On only the income statement.
C. On the income statement and balance sheet, but not the statement of cash flows.
D. On the balance sheet only.
89. The declaration and payment of a $5,000 dividend by JLH Company would be reported on which of JLH’s financial statements?
A. The income statement only.
B. The statement of stockholders’ equity and statement of cash flows.
C. The balance sheet only.
D. The statement of stockholders’ equity only.
90. Which of the following transactions will not decrease the net profit margin ratio?
A. Accruing interest expense at year-end.
B. The recording of depreciation expense.
C. Using cash to pay for previously accrued salaries.
D. Accruing utilities expense at year-end.
