The adjusted trial balance shows ________. A) account balances after adjustments B) revenue and expense accounts only C) account balances before adjustments D) balance sheet accounts only ANSWER A
Date: September 2nd, 2020
An adjusted trial balance does not list the revenues and expenses of a business. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Internal auditors are employees of the business who ensure that employees are following company policies and that operations are running efficiently. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following statements is true of the Sarbanes-Oxley Act? A) Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. B) Those who commit securities fraud must be sentenced to 10 years in prison. C) All private and foreign companies must issue […]
Date: September 2nd, 2020
A company has purchased inventory and received an invoice that requires the buyer to pay the transportation costs for delivering the merchandise. The terms are ________. A) FOB destination B) FOB shipping point C) FOB, 2/10, n/30 D) FOB in transit ANSWER B
Date: September 2nd, 2020
On April 1, Balsa, Inc. purchased office supplies for $1,500. At the end of April, they took a count of the remaining supplies and found that there was $500 of supplies left. Provide the adjusting entry needed at the end of April. (Ignore explanation) Assume the office supplies were initially recorded as an asset. Assume […]
Date: September 2nd, 2020
On July 1, Omega, Inc. paid rent of $15,000 for a small equipment storage area from July 1 until December 31. Provide the adjusting journal entry on July 31. (Ignore explanation). Assume the deferred expense is initially recorded as an asset. What will be an ideal response ANSWER Rent Expense 2,500 Prepaid Rent 2,500 .Rent […]
Date: September 2nd, 2020
Viva, Inc. bought machine X for $18,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine. A) $14,400 B) $3,600 C) $19,800 D) $18,000 ANSWER A .Book value of machine […]
Date: September 2nd, 2020
To which of the following accounts should the balance in the Income Summary account be closed? A) Dividends B) Net Income C) Retained Earnings D) Service Revenue ANSWER C
Date: September 2nd, 2020
On July 1, Alpha, Inc. prepaid rent for a small equipment storage area. Alpha paid $20,000 to rent the area from July 1 through the end of the year. Provide the journal entry needed on July 1 when the payment is made. (Ignore explanation) Assume the deferred expense is initially recorded as an asset. What […]
Date: September 2nd, 2020
