Question : 68. Which of the following statements concerning materiality true? A. Generally accepted accounting : 1229708

 

 

68. Which of the following statements concerning materiality is true? 
A. Generally accepted accounting principles are violated if estimates are used in end-of-period adjustments.
B. Each year the Financial Accounting Standards Board (FASB) publishes the dollar amount considered “material” for each industry.
C. Immaterial items should be handled in the most expedient manner, even if resulting financial statements are not completely precise.
D. Accountants should not waste time and money in recording transactions involving small dollar amounts.

 

 

69. The concept of materiality: 
A. Treats as material only those items that are greater than 2% or 3% of net income.
B. Justifies ignoring the matching principle or the realization principle in certain circumstances.
C. Affects only items reported in the income statement.
D. Results in financial statements that are less useful to decision makers because many details have been omitted.

 

 

70. Which of the following would not be a proper application of the concept of materiality by Millridge Corporation? 
A. Transactions involving small dollar amounts are not recorded in Millridge’s accounting records.
B. Estimates of supplies on hand are used to determine the supplies expense for the period.
C. On a monthly basis, utility bills are expensed in the month paid, rather than in the month in which services are used.
D. Immaterial items are ignored in making end-of-period adjusting entries.

 

 

71. After preparing the financial statements for the current year, the accountant for Barbara’s Jewel Co closed the dividends account at year-end by debiting Retained Earnings and crediting the dividends account. What is the effect of this entry on current-year net income and the balance in the owners’ equity account(s) at year-end? 
A. Net income is overstated; balance in the retained earnings account is correct.
B. Net income is correct; balance in the capital stock account is correct.
C. Net income is understated; balance in the capital stock account is correct.
D. Net income is understated; balance in the retained earnings account is understated.

 

 

72. Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue? 
A. Realization principle.
B. Materiality.
C. Matching.
D. Depreciation.

 

 

73. Which of the following is not an example of an adjusting entry? 
A. The entry to record unpaid expenses.
B. The entry to record uncollected revenues.
C. The entry to convert liabilities to revenue.
D. The entry to pay outstanding bills.

 

 

74. Unearned revenue appears: 
A. As income on the income statement.
B. As an asset on the balance sheet.
C. As a liability on the balance sheet.
D. As a part of the retained earnings.

 

 

75. Prepaid expenses appear: 
A. As an expense on the income statement.
B. As an asset on the balance sheet.
C. As a liability on the balance sheet.
D. As a reduction to retained earnings.

 

 

76. Which of the following is considered an adjusting entry? 
A. The entry to record depreciation.
B. The entry to pay salaries.
C. The entry to pay outstanding bills.
D. The entry to declare a dividend distribution.

 

 

77. Which of the following is considered a contra-asset account? 
A. Prepaid expenses.
B. Unearned revenue.
C. Accumulated depreciation.
D. Accounts receivable.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more