The Accounts Payable account is a temporary account. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Which of the following is an application of conservatism? A) reporting inventory at the lower of cost or market B) reporting only material amounts in the financial statements C) reporting all relevant information in the financial statements D) using the same depreciation method from period to period ANSWER A
Date: September 2nd, 2020
Defective, damaged, or otherwise unsuitable merchandise that is returned to the seller is referred to as purchase allowances by the purchaser. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A company purchased inventory for $100,000 on account and recorded it as follows: Merchandise Inventory 100,000 Accounts Payable 100,000 The vendor’s invoice showed terms of 3/10, net 30 Give the journal entry for the payment of the invoice seven days after the invoice date, assuming that the vendor uses the perpetual inventory system. What will […]
Date: September 2nd, 2020
The trial balance reports the balances of assets, liabilities, and equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The goal of reporting realistic figures and never overstating assets or net income applies to the ________. A) conservatism principle B) materiality concept C) disclosure principle D) consistency principle ANSWER A
Date: September 2nd, 2020
The expected value of a depreciable asset at the end of its useful life is called ________. A) book value B) residual value C) accrued revenue D) accrued expense ANSWER B
Date: September 2nd, 2020
The trial balance is an internal document used only by employees of the company. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A depreciable asset’s cost minus accumulated depreciation is called ________. A) book value B) residual value C) accrued revenue D) accrued expense ANSWER A
Date: September 2nd, 2020
