Question : 31.Which of the following events would not require an end-of-year : 1254348

 

31.Which of the following events would not require an end-of-year adjusting entry?   

A. Purchasing supplies for cash

B. Providing services on account

C. Purchasing a 12-month insurance policy on July 1

D. All of the above would require an end-of-year adjustment

32.The entry to recognize work completed on unearned revenue involves which of the following?   

A. An increase in assets and a decrease in liabilities

B. An increase in liabilities and a decrease in equity

C. A decrease in assets and a decrease in liabilities

D. A decrease in liabilities and an increase in equity

33.Franklin Trash Removal Company received a cash advance of $9,000 on December 1, 2013 to provide services during the months of December, January, and February. The year-end adjustment to recognize the partial expiration of the contract will   

A. increase equity by $3,000

B. increase assets by $3,000

C. increase liabilities by $3,000

D. both A and B

34.The following account balances were drawn from the 2013 financial statements of Gunn Company  Based on the above information, what is the balance of Common Stock for Gunn Company?   

A. $9,950

B. $7,700

C. $450

D. $10,400

35.Prior to closing, XYZ Company’s accounting records showed the following balances:  After closing, XYZ’s retained earnings balance would be   

A. $5,600.

B. $7,000.

C. $7,900.

D. None of the above.

36.Olaf Company began 2013 with $600 in its supplies account. During the year, the company purchased $1,700 of supplies on account. The company paid $1,500 on accounts payable by year end. On December 31, 2013, Olaf counted $700 of supplies on hand. Olaf’s financial statements for 2013 would show:   

A. $800 of supplies; $100 of supplies expense

B. $700 of supplies; $1,600 of supplies expense

C. $700 of supplies; $1,000 of supplies expense

D. $800 of supplies; $1,700 of supplies expense

37.James Company paid $1,800 for one year’s rent in advance beginning on October 1, 2013. James’s 2013 income statement would report rent expense, and its statement of cash flows would report cash outflow for rent, respectively, of   

A. $1,800; $1,800

B. $450; $1,800

C. $450; $450

D. $300; $1,800

38.In uncertain circumstances, the conservatism principle guides accountants to   

A. accelerate revenue recognition and delay expense recognition.

B. accelerateexpense recognition and delay revenue recognition.

C. recognize expense of prepaid items when payment is made.

D. maximize reported net income.

39.Purchasing prepaid rent is classified as a(n):   

A. asset source transaction.

B. asset use transaction.

C. asset exchange transaction

D. claimsexchange transaction.

40.Revenue on account amounted to $3,000. Cash collections of accounts receivable amounted to $2,700. Cash paid for expenses was $2,500. The amount of employee salaries accrued at the end of the year was $300. Cash flow from operating activities was   

A. $200.

B. $300.

C. $500.

D. None of these.

 

 

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