Which of the following is representative of safeguarding assets? A) attaching electronic sensors to merchandise inventory B) reducing expense to increase operating profit C) increasing operating profit to increase net income D) allowing company accountants to handle cash ANSWER A
Date: September 2nd, 2020
Data from a trial balance is used to prepare the income statement, statement of retained earnings, and the balance sheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
What type of account is Prepaid Rent, and what is its normal balance? A) It is an expense account and has a debit balance. B) It is a liability account and has a credit balance. C) It is a revenue account and has a credit balance. D) It is an asset account and has a […]
Date: September 2nd, 2020
Reducing expenses to increase operating profit is representative of ________. A) safeguarding assets B) following company policies C) promoting operational efficiency D) ensuring accurate, reliable accounting records ANSWER C
Date: September 2nd, 2020
What is the term used for the difference between the Equipment account and the Accumulated Depreciation account? A) contra asset B) market value C) historical cost D) book value ANSWER D
Date: September 2nd, 2020
Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out ANSWER A
Date: September 2nd, 2020
Which of the following is true of internal control? A) A company’s outside auditor is responsible for the company’s internal control system. B) One of the major purposes of internal control is to ensure that the assets are safeguarded. C) Internal control procedures tend to diminish the importance of operational efficiency. D) Internal controls are […]
Date: September 2nd, 2020
Which of the following is an objective of internal control? A) to encourage employees to follow company policies B) to ensure timely payment of accounts payable C) to ensure timely collection of accounts receivable D) to guarantee that a business makes a profit ANSWER A
Date: September 2nd, 2020
The beginning balance in the Common Stock account of Cedar Technologies, Inc. was $76,000. The revenues and expenses amounted to $55,000 and $37,000, respectively. During the year, the company did not declare any dividends or issue common stock The Common Stock account will have $131,000 at the end of the year. Indicate whether the statement […]
Date: September 2nd, 2020
Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance. A) revenue; debit B) expense; debit C) contra asset; credit D) liability; credit ANSWER C
Date: September 2nd, 2020
