Question :
82 Assets and liabilities appear which statement?
A)Schedule of cost : 1369946
82 Assets and liabilities appear on which statement?
A)Schedule of cost of goods sold
B)Statement of cash flows
C)Income statement
D)Balance Sheet
83. On September 1, 2010, Olpe Corporation paid $2,400 for a 1-year insurance policy. What amount of expense should Olpe report for the year ended December 31, 2010?
A)$800
B)$1,200
C)$2,400
D)$0
84. On November 1, 2010 Clyde Corp paid $6,000 for six months rent in advance. What is
the appropriate adjusting entry for December 31, 2010?
A) No adjustment needed because no cash paid.
B) Prepaid Rent $4,000
Rent Expense $4,000
C) Rent Expense $2,000
Cash$2,000
D) Rent Expense $2,000
Prepaid Rent $2,000
85. On November 1, 2010 Clyde Corp recieved $6,000 for six months rent in advance. What
is the appropriate adjusting entry for December 31, 2010?
A) No adjustment needed because no cash paid.
B) Unearned Rent $4,000
Rent Expense $4,000
C) Unearned Rent $2,000
Rent Income$2,000
D) Cash $2,000
Rent Income $2,000
86. Net income would decrease as a result of which of the following adjustments?
A)Adjusting unearned revenue
B)Accruing a revenue
C)Accruing an expense
D)Recording revenue earned but not received
87. Which of the following is not an accounting event?
A)A customer places an order for goods.
B)A firm issues stock for cash.
C)A firm received, but did not pay, a bill for advertising.
D)A firm purchased equipment on account.
88. Valhalla Company sold goods on account to a customer for $75,000. The goods cost Valhalla $60,000. How should Valhalla report this transaction?
A)Revenue of $75,000; expense $60,000
B)Revenue, $75,000.
C)Revenue and operating cash inflows, $15,000.
D)Revenue, $15,000.
Which of the following events results in an expense event?
A)Paid for merchandise previously purchased on account.
B)Received utility bill but did not pay it.
C)Paid rent for the next three months.
D)Provided services to a client.
89. Which of the following events results in a revenue event?
A)A customer pays for services to be provided over the next four months.
B)A customer pays for merchandise previously purchased on account.
C)A customer purchases merchandise on open account
D)A bank loan is obtained
90. Palisades Corporation purchased equipment by signing a long-term note payable. What was the effect of this transaction?
A)Increased assets and increased liabilities
B)Increased assets and increased owners’ equity.
C)Increased assets and decreased owners’ equity.
D)Increased owners’ equity and decreased liabilities
91. Which financial statement would report a firm’s total profits accumulated to date minus distributions to owners?
A)Income statement
B)Statement of cash flows
C)Balance sheet
D)Statement of cost of goods sold
