Permanent accounts are not closed at the end of the accounting period. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
In which of the columns of the worksheet would Net Income be found? A) the unadjusted trial balance credit column, the adjusted trial balance credit column, and the balance sheet credit column B) the unadjusted trial balance debit column, the adjusted trial balance debit column, and the balance sheet debit column C) the balance sheet […]
Date: September 2nd, 2020
Credit terms of 2/10, n/30 indicate that a discount of 2% will be given if payment is made within 10 days of the invoice date. Otherwise, the total invoice amount is due within 30 days of the invoice date. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A company should not change the inventory costing method each period in order to maximize net income. This is an example of the disclosure principle. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Sharon Foods, Inc. reported the following transactions for September 2017. a) The business received $22,000 cash and issued common stock. It was credited to Common Stock b) The business purchased office equipment for $9,000 for which $2,500 cash was paid and the balance was put on a note payable. c) Paid insurance expense of $1,500 […]
Date: September 2nd, 2020
Contra asset accounts, such as Accumulated Depreciation, always have normal debit balances. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
On January 1, 2016, Prepaid Insurance of Maywood, Inc. had a beginning balance of $1,400. Three months of insurance premiums remain in the beginning balance On February 1, 2016, the company paid an annual insurance premium in the amount of $3,700 for the period beginning April 1. On February 28, 2016, the balance in Prepaid […]
Date: September 2nd, 2020
A company reports in its financial statements that it uses the FIFO method of inventory costing. This is an example of the disclosure principle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The adjusting process zeroes out all revenue accounts and all expense accounts. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A company changes its inventory costing method each period in order to maximize net income. This is a violation of the consistency principle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
