Fainancial Accounting seem 1 mid term

20問 • 1年前

問題一覧

Which of the following is the primary objective of financial statements?

providing people outside the business organisation with information about the company’s fianacial position and operating result for decision making.

Which of the following is generally not considered one of the general purpose financial statements issued by a corporation?

Income statement forecast for coming year

The valuation of assets in the statement of financial position is based primarily upon:

cost , because it is usually factual and verifiable

The owner of Westhampton Fish Eatery purchased a new car for his daughter who is away at college at a cost of $43,000 and reported this amount as Delivery Vehicle in the restaurant's statement of financial position. The reporting of this item in this manner violated the:

Business entity concept

The balance sheet item that represents the portion of equity resulting from profitable operation of the business is:

restrained earning

The essential point of double-entry system of accounting is that every transaction:

affect two or more ledger account and is recorded by an equal dollar amount of debit and credit

Posting is the process of:

transferring debit and credit entries from the journal into the appropriate ledger account

The principle that states revenue should be recognized at the time goods are sold or services rendered is called:

recognition

Expenses should be recorded when:

they are used up

A journal entry to record revenue could include each of the following, except:

A credit to the Share Capital account.

Which of the following is not a purpose of adjusting entries?

To prepare the revenue and expense account for recording transactions of the following period

The balance of an unearned revenue account __________.

Appears in the liability section of the statement of financial position

Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue?

matching

Under accrual accounting, fees received in advance from customers should be shown as being earned __________.

when service are performed

Which of the following items is an asset?

prepaid rent

The purpose of making closing entries is to:

Prepare revenue and expense accounts for the recording of the next period's revenue and expenses.

Closing entries would be prepared before preparing:

after-closing trial balance.

The concept of adequate disclosure requires a company to inform financial statement users of each of the following, except:

Income projections for the next five years based upon anticipated market share of a new product; the new product was introduced a few days before the balance sheet date.

Which account will appear on an after-closing trial balance?

Prepaid Expenses.

If sales are $270,000, expenses are $320,000 and dividends are $30,000, Income Summary:

debit 50000

IT sem 1 mid term

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問題一覧

Which of the following is the primary objective of financial statements?

providing people outside the business organisation with information about the company’s fianacial position and operating result for decision making.

Which of the following is generally not considered one of the general purpose financial statements issued by a corporation?

Income statement forecast for coming year

The valuation of assets in the statement of financial position is based primarily upon:

cost , because it is usually factual and verifiable

Business entity concept

The balance sheet item that represents the portion of equity resulting from profitable operation of the business is:

restrained earning

The essential point of double-entry system of accounting is that every transaction:

affect two or more ledger account and is recorded by an equal dollar amount of debit and credit

Posting is the process of:

transferring debit and credit entries from the journal into the appropriate ledger account

The principle that states revenue should be recognized at the time goods are sold or services rendered is called:

recognition

Expenses should be recorded when:

they are used up

A journal entry to record revenue could include each of the following, except:

A credit to the Share Capital account.

Which of the following is not a purpose of adjusting entries?

To prepare the revenue and expense account for recording transactions of the following period

The balance of an unearned revenue account __________.

Appears in the liability section of the statement of financial position

Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue?

matching

Under accrual accounting, fees received in advance from customers should be shown as being earned __________.

when service are performed

Which of the following items is an asset?

prepaid rent

The purpose of making closing entries is to:

Prepare revenue and expense accounts for the recording of the next period's revenue and expenses.

Closing entries would be prepared before preparing:

after-closing trial balance.

The concept of adequate disclosure requires a company to inform financial statement users of each of the following, except:

Income projections for the next five years based upon anticipated market share of a new product; the new product was introduced a few days before the balance sheet date.

Which account will appear on an after-closing trial balance?

Prepaid Expenses.

If sales are $270,000, expenses are $320,000 and dividends are $30,000, Income Summary:

debit 50000