The terms of an invoice are 3/10, n/25. This means that a ________. A) discount of 10 percent is allowed if the invoice is paid within three days B) discount of 3 percent is allowed if the invoice is paid within 10 days C) discount of 25 percent is allowed if the invoice is paid […]
Date: September 2nd, 2020
Which of the following states that the business should use the same accounting methods from period to period? A) materiality concept B) consistency principle C) conservatism D) disclosure principle ANSWER B
Date: September 2nd, 2020
The Office Supplies account is a temporary account. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A trial balance is a list of all of the accounts of a company with their balances at a point in time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A trial balance is the list of only a company’s debit accounts along with their account numbers at a point in time. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
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
The consistency principle states that businesses should report the same amount of ending merchandise inventory from period to period. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
