Question :
1.The accounting period the time
a. the Controller decides to close : 1241810
1.The accounting period is the time
a. the Controller decides to close the books.
b. between selling a product to a customer and collecting the cash from the customer.
c. that it usually takes to journalize and post events to the ledger.
d. covered by the income, cash flow, and shareholders’ equity statements.
2.An event that affects assets, liabilities, or shareholders’ equity is considered to be
a. timely.
b. objectively measured.
c. relevant.
d. capitalized.
3.An event for which an appropriate monetary measure can be derived is considered to be
a. objectively measured.
b. economically viable.
c. relevant.
d. capitalized.
4.If an event is considered to change assets, liabilities, or shareholders’ equity with an appropriate monetary measure, then it is
a. considered a financial changing event.
b. listed on the U.S. stock exchange.
c. considered a debt or payable of a company.
d.recorded in the books of a company.
5.If assets are $1,100, liabilities are $600, and contributed capital is $200, then shareholders’ equity is
a. $500.
b. $1,700.
c. $800.
d.$900.
6.Alberto Company paid its insurance premiums for a two-year insurance policy on May 1, 2015, and recorded them in a prepaid insurance account. The adjusting entry required at May 31, 2015, to recognize the one-month portion for the month of May will
a.increase an expense account and increase a liability account.
b.increase an expense account and decrease an asset account.
c.increase an asset account and decrease an expense account.
d.increase a revenue account and decrease an asset account.
7.Vera Company acquired a new forklift in exchange for signing a 6-month, 10%, $20,000 note dated May 1, 2015. Vera agreed to repay the entire principal at the end of the 6-month period. Vera should:
a.record one month of interest expense only if the forklift runs as intended.
b.record all 6 months of expense when the interest is paid.
c.accrue one month of interest expense at May 31, 2015.
d.record the interest payments as prepaid interest when paid.
8.On May 31, 2015, the physical count of office supplies was $2,400. During June, supplies were acquired at a cost of $1,600 and the company debited the Office Supplies Expense account. At June 30, actual supplies on hand totaled $500. The credit part of the adjusting entry required at the end of June is
a.Office Supplies Expense of $1,900.
b.Office Supplies of $1,900.
c.Office Supplies Expense of $2,400.
d.Office Supplies of $500.
9.Liabilities are $3,000, retained earnings are $1,000, and contributed capital is $4,000. Assets must be
a. $4,000.
b. $8,000.
c. $5,000.
d. $6,000.
10.Which one of the following changes describes the receipt of $3,000 from the issuance of common stock?
a. Assets and shareholders’ equity increase by $3,000.
b. Assets and shareholders’ equity decrease by $3,000.
c. Assets and liabilities increase by $3,000.
d. Assets increase and shareholders’ equity decreases by $3,000.
