Question : 129. A company purchased new computers at a cost of $14,000 : 1225733

 

129. A company purchased new computers at a cost of $14,000 on September 30. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the first year ended December 31? 

A. $250

B. $750

C. $875

D. $1,000

E. $3,000

130. The balance in Tee Tax Services’ office supplies account on February 1 and February 28 was $1,200 and $375, respectively. If the office supplies expense for the month is $1,900, what amount of office supplies was purchased during February? 

A. $1,075

B. $1,500

C. $1,525

D. $2,325

E. $3,100

131. Which of the following statements is incorrect? 

A. An income statement reports revenues earned less expenses incurred.

B. An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments.

C. Interim financial reports can be based on one-month or three-month accounting periods.

D. The fiscal year is any 12 consecutive months (or 52 weeks) used by a business as its annual accounting period.

E. Property, plant, and equipment are referred to as plant assets.

132. A trial balance prepared after adjustments have been recorded is called a(n) 

A. Balance sheet.

B. Adjusted trial balance.

C. Unadjusted trial balance.

D. Classified balance sheet.

E. Unclassified balance sheet.

133. A trial balance prepared before any adjustments have been recorded is: 

A. An adjusted trial balance.

B. Used to prepare financial statements.

C. An unadjusted trial balance.

D. Correct with respect to proper balance sheet and income statement amounts.

E. Only prepared once a year.

134. The adjusted trial balance contains information pertaining to: 

A. Asset accounts only.

B. Balance sheet accounts only.

C. Income statement accounts only.

D. All general ledger accounts.

E. Revenue accounts only.

135. Financial statements are typically prepared in the following order: 

A. Balance sheet, statement of owner’s equity, income statement.

B. Statement of owner’s equity, balance sheet, income statement.

C. Income statement, balance sheet, statement of owner’s equity.

D. Income statement, statement of owner’s equity, balance sheet.

E. Balance sheet, income statement, statement of owner’s equity.

136. A balance sheet that places the assets above the liabilities and equity is called a(n): 

A. Report form balance sheet.

B. Account form balance sheet.

C. Classified balance sheet.

D. Unadjusted balance sheet.

E. Unclassified balance sheet.

137. A balance sheet that places the liabilities and equity to the right of the assets is a(n): 

A. Account form balance sheet.

B. Report form balance sheet.

C. Interim balance sheet.

D. Classified balance sheet.

E. Unclassified balance sheet.

138. Under the alternative method for accounting for unearned revenue, which of the following pairs of journal entry formats is correct?    

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

 

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