The Accounts Receivable account is a permanent account. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The entry to record depreciation includes a debit to the ________. A) Equipment account B) Cash account C) Accumulated Depreciation account D) Depreciation Expense account ANSWER D
Date: September 2nd, 2020
The entry to record depreciation includes a credit to the ________. A) Depreciation Payable account B) Cash account C) Accumulated Depreciation account D) Depreciation Expense account ANSWER C
Date: September 2nd, 2020
Which of the following states that a company must perform strictly proper accounting only for items that are significant to the business’s financial statements? A) conservatism B) materiality concept C) disclosure principle D) consistency principle ANSWER B
Date: September 2nd, 2020
Asset and liability accounts are closed to the Income Summary account. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A company decides to ignore a very small error in its inventory balance. This is an example of the application of the ________. A) conservatism B) materiality concept C) disclosure principle D) consistency principle ANSWER B
Date: September 2nd, 2020
The trial balance is also known as the balance sheet. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
An invoice of $600 for merchandise purchased is showing 3/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day, the amount to be paid is ________. A) $582 B) $600 C) $618 D) $621 ANSWER A .Purchases $600 Discount -18 Net amount due $582
Date: September 2nd, 2020
The trial balance verifies the equality of debits and credits at a point in time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
An invoice, with payment terms of 2/10, n/30, was issued on April 28 for $235.00. If the payment was made on May 12, the amount of payment will be ________. (Round your answer to the nearest cent.) A) $235.00 B) $211.50 C) $230.30 D) $233.00 ANSWER A
Date: September 2nd, 2020
