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Study Resources (Accounting)

21) Which of the following is a characteristic of a corporation? A) A corporation is owned by stockholders. B) Lenders of a corporation do not have the right to claim the corporation's assets to satisfy their obligations. C) All shares of a corporation must be held by a single individual. D) Each stockholder has.
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11) Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month. Which of the following accounts would decrease as a result of this transaction? A) Cash B) Equity C) Accounts Payable D) Accounts Receivable 12) Ace Inc. had the following transactions in June: Sold goods for.
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41) Which of the following is a contra account? A) Depreciation Expense B) Accumulated Depreciation C) Unearned Revenue D) Earned Revenue 42) Accrued revenue is revenue that: A) has been collected and earned. B) the business has collected in cash, but not yet earned. C) the business has earned, but not yet collected in cash. D) will be collected.
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21) Which of the following groups of accounts normally have a debit balance? A) assets and expenses B) revenues and expenses C) liabilities and owner's equity D) assets and liabilities 22) Which of the following groups of accounts will decrease with a debit? A) assets and expenses B) revenues and expenses C) liabilities and owner's equity D) assets and.
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31) The entry to record depreciation includes a credit to: A) the Depreciation Payable account. B) the Cash account. C) the Accumulated Depreciation account. D) the Depreciation Expense account. 32) If an adjusting entry includes a debit to Rent Expense, that would indicate that the payment of rent had been previously recorded as a(n): A) prepaid.
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Learning Objective 2-1 1) A chart of accounts is a detailed record of the changes in a particular asset, liability, or owner's equity. 2) A chart of accounts is a list of all of a company's accounts with their account numbers. 3) Liabilities are economic resources that are expected to benefit the business.
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26) Carol Instruments sells musical instruments. On December 31, 2015, after its first month of business, Carol Instruments had the following balances in its accounts, listed alphabetically. Accounts Receivable $5,000 Accounts Payable 15,000 Advertising Expense 2,000 Building 16,500 Cash ??? Carol, Capital 50,000 Carol, Withdrawals 1,200 Equipment 2,000 Land 70,000 Notes Payable 60,000 Salaries Expense 4,000 Service Revenue 72,000 Office Supplies 3,400 Utilities Expense 4,100 Determine the balance in the cash account and prepare the trial balance. 27) At the.
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11) Team incentives encourage cooperation by A) forcing people to work together on difficult tasks. B) changing management style. C) letting individuals help one another as they strive toward a common goal. D) rewarding all teams members by the same amount. E) rewarding team members individually. 12) Which type of compensation is most prevalent when a.
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11) Which of the following is a liability account? A) Accounts Receivable B) Cash C) Building D) Notes Payable 12) Which of the following is an asset account? A) Wages Payable B) Notes Payable C) Unearned Revenue D) Accounts Receivable 13) A customer's promise to pay in the future for services or goods sold is called a(n): A) Accounts Receivable. B) Accounts.
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17) National Can Company has three divisions, Eastern, Midwestern, and Western. Because of very different accounting methods and inflation rates in different countries it is considering multiple evaluation measures. Information gathered about the divisions for the year just ended follows: a.Compute the ROI using both book value and current value for.
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Learning Objective 1-1 1) Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. 2) Accounting is referred to as the language of business because it is the method of communicating business information to stakeholders. 3) Managerial accounting focuses on information for.
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12) Which of the following is the fifth and last step in the journalizing and posting process? A) posting the accounts to the ledger B) identifying each account affected and its type C) determining whether the accounting equation is in balance D) determining whether each account has increased or decreased 13) Which of the following.
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21) The following are the current month's balances for Toys Galore: Accounts Payable $8,000 Revenue 10,000 Cash 5,000 Expenses 1,750 Furniture 12,000 Accounts Receivable 14,000 Jones, Capital 8,250 Notes Payable 6,500 Calculate the total amount of credits for the trial balance. A) $24,500 B) $22,750 C) $24,750 D) $32,750 22) The following are the current month's balances for Toys Galore: Accounts Payable $8,000 Revenue 10,000 Cash 5,000 Expenses 1,750 Furniture 12,000 Accounts Receivable 14,000 Jones, Capital 8,250 Notes Payable 6,500 What is the total amount of debits for the.
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41) A business pays cash back to the owner. Which of the following accounts will be debited? A) Cash B) Smith, Withdrawals C) Accounts Payable D) Smith, Capital 42) The owner of a business withdrew cash for personal use. Which of the following accounts will be credited? A) Smith, Capital B) Smith, Withdrawals C) Cash D) Accounts Payable 43) An.
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Learning Objective 1-2 1) As per the economic entity assumption, an organization and its owner should be seen as the same entity. 2) The guidelines for accounting information are called Generally Accepted Accounting Principles (GAAP). 3) IFRS is the main U.S. accounting rule book and is currently created and governed by the FASB. 4).
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11) Different users of financial statements focus on the different parts of the financial statements for the information they need. 12) Any person or business to whom a business owes money is called the business's creditor. 13) Managerial accounting provides information to: A) internal decision makers. B) outside investors and lenders. C) auditors. D) taxing authorities. 14).
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Learning Objective 3-1 1) Under accrual accounting, transactions are recorded only when cash is received or paid. 2) The owner of Recipes.org purchased $2,000 of supplies on account. Under the accrual basis of accounting, no entry is made until the $2,000 is paid. 3) In cash basis accounting, revenue is recognized when cash.
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Learning Objective 3-3 1) Accrued revenues are the income that has been received but not earned. 2) Prepaid insurance is an asset account, and hence it appears on the balance sheet. 3) Prepaid rent is an expense account, and hence it appears on the income statement. 4) A contra account's normal balance (debit or.
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Learning Objective 1-4 1) A business owner starts a new business and invests $6,000 of capital. This transaction results in an increase in the assets of the business. 2) For an accounting equation to balance, a transaction must affect both the sides of the equation. 3) John contributes cash in exchange for capital.
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11) Which of the following is a financial statement that presents a business's accounting equation? A) chart of accounts B) trial balance C) income statement D) balance sheet 12) Which of the following is used by both internal and external users to the company? A) chart of accounts B) trial balance C) balance sheet D) costing reports 13) Which of.
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Learning Objective 3-4 1) An adjusted trial balance does not list the revenues and expenses of a business. 2) The adjusted trial balance helps to identify: A) account balances after adjustments. B) revenue accounts only. C) account balances before adjustments. D) amounts that are out of balance. 3) Deborah Consultants had the following accounts and account balances.
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71) Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $6,720 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $12,000 with useful life of 4 years. Ursula's monthly depreciation expense calculated using the straight-line method is: (Assume salvage.
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Learning Objective 1-5 1) The balance sheet of a business summarizes an entity's revenues and expenses. 2) By looking at a statement of owner's equity, the effect of withdrawals on the ending balance in owner's equity can be evaluated. 3) Financial statements are business documents that are used to communicate information needed to.
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51) Sharon Company reported the following transactions for September, 2015. A)Sharon started the business with a capital contribution of $25,000 cash. It was credited to Sharon, Capital. B)The business purchased office equipment for $11,500 for which $2,500 cash was paid and the balance was put on a note payable. C)Paid insurance expense of.
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5) The accounting principle that ensures that all expenses are recorded when they are incurred during the period, and compares those expenses against the revenues of the period is called the ________ principle. A) comparison B) accrual C) matching D) revenue recognition 6) Which of the following accounting terms assumes that a business's activities can.
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6) Which of the following statements helps analyze the business performance in terms of profitability? A) income statement B) balance sheet C) statement of cash flows D) statement of owner's equity 7) Which of the following financial statements is used to analyze the economic resources, debt, and overall financial position of a company? A) income statement B).
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7) ________ and ________ would be uncontrollable factors that a firm would need to consider when evaluating the return on investment of an international division. A) Manager's experience; currency stability B) Manager's compensation; political climate C) Required rate of return; legal requirements D) Custom duties; cultural environment E) Cultural requirements;.
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24.4   Evaluate the behavioural effects of salaries and incentives in compensation arrangements. 1) An important consideration in designing compensation arrangements is the tradeoff between creating incentives, and reducing risk. 2) Moral Hazard describes contexts in which, once risk is shared, the individual fails to make as much effort to avoid harm as.
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6) Owner's withdrawals are the expenses of a business. 7) A debt that a business owes to an outside party is called: A) an asset. B) a liability. C) stockholders' equity. D) revenue. 8) Viva Inc. produces and sells coffee beans. This month it earned $500 by selling coffee beans to Jeffery Inc. The $500 received.
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24.5   Apply strategic concepts to analyze the four levers of control and evaluate their usefulness. 1) Ethical behaviour on the part of managers, while important for its own sake, is not paramount in importance. 2) An interactive control system is a formal information system that managers use to focus organization attention and.
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Learning Objective 2-3 1) Source documents provide the evidence and data for accounting transactions. 2) Debits in the journal are always posted as debits in the ledger. 3) The process of transferring data from the ledger to the journal is called posting. 4) A journal entry under the double-entry system includes both debit and.
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11) Which of the following accounts does cash basis accounting ignore? A) Payables B) Revenue C) Cash D) Expenses 12) Two weeks earlier, a business had rendered services to one of its customers on account for which the payment was received today. Which of the following entries would be recorded if the company uses accrual.
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