Multi Choice For Accounting
What is the opportunity component of the fraud triangle? A. A person thinks that there is a way to commit fraud without much chance of getting caught. B. A person has a really good reason to commit fraud. C. A person does not think of the fraudulent activity as bad. D. A person persuades two or more other people to assist with the fraud . E. A person is concerned about the impact of their actions on society.
A. A person thinks that there is a way to commit fraud without much chance of getting caught.
A ledger is: A. A record containing all accounts (with amounts) for a business. B. A journal in which transactions are first recorded. C. A collection of documents that describe transactions and events during the accounting process. D. A list of all accounts with their debit balances at a point in time. E. A list of all accounts a company uses and includes an identification number assigned to each account.
A. A record containing all accounts (with amounts) for a business.
Identifying business activities requires selecting transactions and events relevant to an organization. Which of the following events would be recorded in the accounting records of Acme Car Wash? A. Acme washes 500 cars. B. J.B. Smith, a customer, buys lunch at the restaurant next door to Acme while waiting for her car to be washed. C. Clean Company, a supplier, sells 50 pounds of soap to ABC Company. D. Sudsey Company, a supplier, goes out of business. E. Acme hires Andrea as a receptionist.
A. Acme washes 500 cards.
CHAPTER 2 The accounting process begins with: A. Analysis of business transactions and events. B. Preparation of financial statements and other reports. C. Summarizing the recorded effects of business transactions. D. Presentation of financial information to decision-makers. E. Preparation of the trial balance.
A. Analysis of business transactions and events.
Resources owned or controlled by a company that are expected to yield benefits are: A. Assets B. Revenues C. Liabilities D. Stockholder's equity E. Expenses
A. Assets
A financial statement providing information that helps users understand a company's financial status and lists the types and amounts of assets, liabilities, and equity as of a specific date is called a(n): A. Balance sheet. B. Income statement. C. Statement of cash flows. D. Statement of retained earnings. E. Financial status statement.
A. Balance Sheet
Accounts payable appear on which of the following statements? A. Balance sheet. B. Income statement. C. Statement of retained earnings. D. Statement of cash flows E. Transaction statement.
A. Balance Sheet
Consider the risk of the following investments. Choose the answer that lists the investments in order from highest expected return to lowest expected return. A. Drilling exploration to discover oil, stock in a secure "blue chip" corporation, government bonds. B. Stock in a secure "blue chip" corporation, government bonds, drilling exploration to discover oil. C. Government bonds, drilling exploration to discover oil, stock in a secure "blue chip" corporation. D. Drilling exploration to discover oil, government bonds, stock in a secure "blue chip" corporation. E. Government bonds, stock in a secure "blue chip" corporation, drilling exploration to discover oil.
A. Drilling exploration to discover oil, stock in a secure "blue chip" corporation, government bonds.
The principle prescribing that financial statements reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: A. Going-concern principle B. Business entity principle C. Objectivity principle D. Cost principle E. Monetary unit principle
A. Going-concern principle
The International Accounting Standards Board (IASB) A. Hopes to create harmony among accounting practices of different countries. B. Is the government group that establishes reporting requirements for companies that issue stock to the public. C. Has the authority to impose its standards on companies D. Is the only source of U.S. generally accepted accounting principles (GAAP). E. Applies only to companies that are members of the European Union.
A. Hopes to create harmony among accounting practices of different countries.
A limited partnership: A. Includes a general partner with unlimited liability. B. Is subject to double taxation. C. Has owners called stockholders. D. Is the same as a corporation. E. Must only have two partners.
A. Includes a general partner with unlimited liability.
Fees earned (but not yet received in cash) by a business in exchange for services that it has provided appear on which of the following statements? A. Income statement B. Statement of cash received C. Statement of retained earnings D. Statement of cash flows E. Schedule of accounts receivable
A. Income statement
The general ledger of a business A. Is a collection of all accounts used in a company's information system. B. Must be kept in a computer file. C. Is also called the book of original entry. D. Is not affected by a company's size and diversity. E. Is one of the four financial statements.
A. Is a collection of all accounts used in a company's information system.
Social responsibility: A. Is a concern for the impact of one's actions on society as a whole. B. Is a code that helps in dealing with confidential information. C. Is required by the SEC. D. Requires that all businesses conduct social audits. E. Is mandated by the federal government.
A. Is a concern for the impact of one's actions on society as a whole.
A corporation: A. Is a legal entity separate and distinct from its owners. B. Must have many owners. C. Has shareholders who have unlimited liability for the acts of the corporation. D. Is the same as a limited liability partnership. E. Does not have to pay taxes.
A. Is a legal entity separate and distinct from its owners.
The objectivity principle: A. Means that information is supported by independent, unbiased evidence. B. Means that information can be based on what the preparer thinks is true. C. Means that financial statement should contain information that is optimistic. D. Means that a business may not recognize revenue until cash is received. E. Means the assets acquired must be recorded at what the company paid for them.
A. Means that information is supported by independent, unbiased evidence.
The statement of cash flows reports on cash flows for: A. Operating activities B. Revenue activities C. Expense activities D. Planning activities E. Equity activities
A. Operating activities
An example of an operating activity is: A. Paying wages. B. Purchasing office equipment C. Borrowing money from a bank. D. Selling stock. E. Paying off a loan.
A. Paying Wages
The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the: A. Revenue recognition principle B. Going-concern principle C. Objectivity principle D. Business entity principle E. Cost principle
A. Revenue recognition principle
Ethical behavior requires: A. That an auditor's pay not depend on the figures in the client's reports. B. Auditors to invest in businesses they audit. C. Analysts to report information favorable to their companies. D. Managers to use accounting information to benefit themselves. E. That an auditor provides a favorable opinion.
A. That an auditor's pay not depend on the figures in the client's reports.
. According to generally accepted accounting principles, a company's balance sheet should show the company's assets at: A. The cash equivalent value of what was given up. B. The current market value of the assets at the balance sheet date. C. The cash paid to acquire them, even if something other than cash was given in the exchange. D. The best estimate from a certified internal auditor. E. The objective value to external users.
A. The cash equivalent value of what was given up.
The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: A. Income statement equation . B. Accounting equation. C. Business equation . D. Return on equity ratio. E. Net income.
B. Accounting Equation
Assets created by selling goods and services on credit are: A. Accounts payable B. Accounts receivable C. Liabilities D. Expenses E. Equity
B. Accounts receivable
Source documents: A. Include the ledger. B. Are the origins of accounting information. C. Must be in electronic form. D. Are based on accounting entries. E. Include the chart of accounts.
B. Are the origins of accounting information.
An account used to record the owners' investments in the business is called: A. Dividends B. Common Stock C. Revenue D. Expense E. Liability
B. Common Stock
Businesses can take all of the following forms except: A. Sole proprietorship B. Common stock C. Partnership D. Corporation E. Limited liability corporation
B. Common Stock
Return on assets is: A. Also called rate of return. B. Computed by dividing net income by average total assets. C. Computed by multiplying net income by average total assets. D. Used in helping evaluate expenses. E. Found on the balance sheet.
B. Computed by dividing net income by average total assets.
The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the: A. Accounting equation B. Cost principle C. Going-concern principle D. Realization principle E. Business entity principle
B. Cost Principle
The distribution of assets to stockholders is called a(n): A. Liability B. Dividend C. Expense D. Contribution E. Investment
B. Dividend
The private board that currently has the authority to establish U.S. generally accepted accounting principles is the: A. APB B. FASB C. AAA D. AICPA E. SEC
B. FASB
The owners of a partnership: A. Have created an entity that can also be called a sole proprietorship. B. Have unlimited liability. C. Have to have a written agreement in order to be legal. D. Have created a legal organization separate from its owners. E. Are called shareholders.
B. Have unlimited liability.
Which of the following statements is true? A. Assets and revenues are the same thing. B. If employees have not yet been paid for their work, the company has wages payable. C. Retained earnings equal cash that the company has earned and kept D. Revenue is another term for profit. E. Revenue minus expense equals retained earnings.
B. If employees have not yet been paid for their work, the company has wages payable.
Rent expense that is paid with cash appears on which of the following statements? A. Balance sheet B. Income statement C. Statement of retained earnings D. Schedule of accounts receivable E. Statement of cash received
B. Income Statement
Operating activities: A. Are the means organizations must use to pay for resources like land, buildings, and equipment. B. Involve using resources to research, develop, purchase, produce, distribute, and market products and services. C. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. D. Are also called asset management. E. Are also called strategic management.
B. Involve using resources to research, develop, purchase, produce, distribute, and market products and services.
A sales invoice: A. Is a type of use document. B. Is a source document. C. Is not needed by buyers. D. Gives rise to an entry in the accounting process. E. Is not necessary in accounting.
B. Is a source document.
Source documents include all of the following except: A. Sales tickets B. Ledgers C. Checks D. Purchase orders E. Bank statements
B. Ledgers
U.S. government bonds are: A. High-risk and high-return investments. B. Low-risk and low-return investments. C. High-risk and low-return investments. D. Low-risk and high-return investments. E. High risk and no-return investments.
B. Low-risk and low-return investments.
. The area of accounting aimed at serving the decision-making needs of internal users is: A. Financial accounting B. Managerial accounting C. External auditing D. SEC reporting E. Governmental accounting
B. Managerial Accounting
Internal users of accounting information always include: A. Shareholders B. Managers C. Lenders D. Suppliers E. Customers
B. Managers
Recording the items on the financial statements in dollars is done because of the: A. Objectivity principle B. Monetary unit principle C. Revenue recognition principle D. Going-concern principle E. Cost principle
B. Monetary unit principle
An example of a financing activity is: A. Buying office supplies. B. Obtaining a long-term loan. C. Buying office equipment. D. Selling inventory. E. Buying land.
B. Obtaining a long-term loan.
Which of the following statements is correct? A. When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense. B. Promises of future payment are called accounts payable. C. Increases and decreases in cash are always recorded in the retained earnings account. D. An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business. E. Liabilities include accounts receivable.
B. Promises of future payment are called accounts payable.
The statement of retained earnings: A. Reports how retained earnings changes at a point in time. B. Reports how retained earnings changes over a period of time C. Reports on cash flows for operating, financing and investing activities over a period of time. D. Reports on cash flows for operating, financing and investing activities at a point in time E. Reports on amounts for assets, liabilities and equity at a point in time.
B. Reports how retained earnings changes over a period of time
Increases in retained earnings from a company's earnings activities are: A. Assets B. Revenues C. Liabilities D. Stockholder's equity E. Expenses
B. Revenues
For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items? A. The receipt contains coded information that the seller needs to prepare and analyze the trial balance. B. Sellers wish to ensure that the sale in question was rung up on the register in the first place. C. This is a legal requirement mandated by a federal law. D. The receipt is serving as a promissory note. E. To create an environment in which customers do not want to return items.
B. Sellers wish to ensure that the sale in question was rung up on the register in the first place.
An asset is: A. Only acquired with cash. B. Something the company owns. C. Only contributed by stockholders. D. A company's obligation to pay. E. Is also called contributed capital.
B. Something the company owns
The financial statement that describes where a company's cash came from and how it was spent during the period is the: A. Statement of financial position. B. Statement of cash flows. C. Balance sheet. D. Income statement. E. Statement of retained earnings.
B. Statement of cash flows.
The account used to record the transfers of assets from a business to its stockholders is: A. A revenue account B. The dividends account C. Common stock account D. An expense account E. A liability account
B. The dividends account
Which of the following is the primary purpose of accounting? A. To establish a business. B. To identify, record, and communicate business transactions. C. To earn a large profit. D. To reduce taxes owed for the business. E. To establish credit for a company.
B. To identify, record, and communicate business transactions.
The primary objective of financial accounting is: A. To serve the decision-making needs of internal users. B. To provide financial statements to help external users analyze and interpret an organization's activities. C. To monitor and control company activities. D. To provide information on both the costs and benefits of managing products and services. E. To know what, when and how much to produce.
B. To provide financial stat
Which of the following statements about the Cash account are true? A. Because most companies earn their fees in cash, the Cash account is categorized as revenue. B. For any given transaction, Accounts Receivable and Cash can be used interchangeably because both accounts are measured in terms of cash. C. The Cash account includes the value of any medium of exchange that a bank accepts for deposit. D. Cash is the same thing as Retained Earnings. E. Cash is a liability account.
C. The Cash account includes the value of any medium of exchange that a bank accepts for deposit.
A balance sheet lists: A. The types and amounts of the revenues and expenses of a business. B. Only the information about what happened to retained earnings during a time period. C. The types and amounts of assets, liabilities and equity of a business as of a specific date. D. The cash inflows and outflows during the period. E. The assets and liabilities of a company, but not the equity.
C. The types and amounts of assets, liabilities and equity of a business as of a specific date.
Risk is: A. Net income divided by average total assets. B. The reward for investment. C. The uncertainty about the expected return that will be earned from an investment. D. Unrelated to expected return. E. Derived from the idea of getting something back from an investment.
C. The uncertainty about the expected return that will be earned from an investment.
Which of the following statements best describes the relationship of U.S. GAAP and IFRS? A. They are identical. B. They are entirely different conceptual frameworks. C. They are similar but not identical. D. Neither has anything to do with accounting E. They both relate only to publicly traded companies.
C. They are similar but not identical.
How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? A. +$10,000 accounts receivable, -$10,000 accounts payable. B. +$10,000 accounts receivable, +$10,000 accounts payable. C. +$10,000 accounts receivable, +$10,000 cash. D. +$10,000 accounts receivable, +$10,000 consulting revenue. E. +$10,000 accounts receivable, -$10,000 consulting revenue.
D. +$10,000 accounts receivable, +$10,000 consulting revenue.
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): A. Journal B. Posting C. Trial balance D. Account E. Chart of accounts
D. Account
Prepaid expenses are: A. Payments made for products and services that do not ever expire. B. Classified as liabilities on the balance sheet. C. Decreases in retained earnings. D. Assets that represent prepayments of future expenses. E. Promises of payments by customers.
D. Assets that represent prepayments of future expenses.
Marian Mosely is the owner of Mosely Accounting Services. Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services? A. Monetary unit assumption B. Going-concern assumption C. Cost assumption D. Business entity assumption E. Full disclosure assumption
D. Business entity assumption
A list of all accounts used by a company and the identification number assigned to each account is called a: A. Ledger B. Journal C. Trial balance D. Chart of accounts E. General Journal
D. Chart of accounts
Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called: A. Liabilities B. Equity C. Withdrawals D. Expenses E. Contributed capital
D. Expenses
The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n): A. Balance sheet. B. Statement of retained earnings. C. Statement of cash flows. D. Income statement. E. Statement of financial position.
D. Income Statement
Revenues are: A. The same as net income. B. The excess of expenses over assets. C. Resources owned or controlled by a company. D. Increases in retained earnings from a company's earning activities. E. The costs of assets or services used.
D. Increases in retained earnings from a company's earning activities.
Generally Accepted Accounting Principles: A. Focus on the review of a situation. B. Do not require financial statements. C. Never change. D. Intend to make information on the financial statements relevant, reliable, and comparable. E. Oversees Security and Exchange Commission.
D. Intend to make information on the financial statements relevant, reliable, and comparable.
Net income: A. Decreases equity. B. Represents the amount of assets owners put into a business. C. Equals assets minus liabilities. D. Is the excess of revenues over expenses. E. Represents the owners' claims against assets.
D. Is the excess of revenues over expenses.
Which of the following accounting principles dictates when expenses are recognized? A. Revenue recognition principle B. Monetary unit principle C. Business entity principle D. Matching principle E. Full disclosure principle
D. Matching Principle
A written promise to pay a definite sum of money on a specific future date is a(n): A. Unearned revenue B. Prepaid expense C. Credit account D. Note payable E. Account receivable
D. Note Payable
The accounting guideline prescribing that financial statement information be supported by independent, unbiased evidence other than someone's belief or opinion is the: A. Business entity principle B. Monetary unit principle C. Going-concern principle D. Objectivity principle E. Full disclosure principle
D. Objectivity principle
The major activities of a business include: A. Operating, investing, making a profit. B. Investing, making a profit, operating C. Making a profit, operating, borrowing D. Operating, investing, financing E. Investing, making a profit, financing
D. Operating, investing, financing
Cash investments by owners in exchange for stock are listed on which of the following statements? A. Balance sheet. B. Income statement. C. Statement of retained earnings. D. Statement of cash flows. E. Statement of cash received
D. Statement of cash flows.
A debit is: A. An increase in an account. B. The right-hand side of a T-account. C. A decrease in an account. D. The left-hand side of a T-account. E. An increase to a liability account.
D. The left-hand side of a T-account.
Which of the following statements is not true about assets? A. They are economic resources owned or controlled by the business. B. They are expected to provide future benefits to the business. C. They appear on the balance sheet. D. They appear on the statement of retained earnings. E. Claims on them are shared between creditors and owners.
D. They appear on the statement of retained earnings.
Revenue is properly recognized: A. When the customer's order is received. B. Only if the transaction creates an account receivable. C. At the end of the accounting period. D. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price E. When cash from a sale is received.
D. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price
An exchange of value between two entities is called: A. The accounting equation. B. Recordkeeping or bookkeeping. C. A business transaction. D. An asset. E. Net Income.
C. A business transaction
Expenses: A. Increase retained earnings B. Are increases in retained earnings from a company's earning activity. C. Are the costs of assets or services used to earn revenues. D. Occur when retained earnings exceed revenue. E. Are creditors' claims on assets.
C. Are the costs of assets or services used to earn revenues.
The income statement reports all of the following except: A. Revenues earned by a business. B. Expenses incurred by a business. C. Assets owned by a business. D. Net income or loss earned by a business. E. The time period over which the earnings occurred.
C. Assets owned by a business.
Viscount Company collected $42,000 cash on its accounts receivable. How does this transaction affect the company's accounting equation? A. Assets decrease and equity increases B. Both assets and liabilities decrease C. Assets, liabilities, and equity are unchanged D. Both assets and equity are unchanged and liabilities increase E. Assets increase and equity decreases
C. Assets, liabilities, and equity are unchanged
To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the: A. Objectivity principle B. Realization principle C. Business entity principle D. Going-concern principle E. Revenue recognition principle
C. Business entity principle
The Maximum Experience Company acquired a building for $500,000. Maximum Experience had an appraisal done and found that the building was worth $575,000. The seller had paid $300,000 for the building six years ago. Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000? A. Monetary unit principle B. Going-concern principle C. Cost principle D. Business entity principle E. Revenue recognition principle
C. Cost Principle
Which of the following accounting principles would prescribe that all goods and services purchased are recorded at cost? A. Going-concern principle B. Continuing-concern principle C. Cost principle D. Business entity principle E. Consideration principle
C. Cost principle
The difference between a company's assets and its liabilities is: A. Net income B. Expense C. Equity D. Revenue E. Net loss
C. Equity
The statement of cash flows reports information on: A. Revenue activities B. Expense activities C. Financing activities D. Equity activities E. Asset activities
C. Financing activities
Why are ethics crucial to accounting? A. Ethical behavior creates the most profit for the business. B. Ethics are a tool which help the accountants balance the accounting equation. C. For accounting information to be useful, it must be trusted and therefore the result of ethical decisions. D. Ethics are important to consider when applying GAAP but do not apply to international accounting issues. E. Ethics are a way to compute revenues and expenses, but they do not apply to assets, liabilities, and owners' equity.
C. For accounting information to be useful, it must be trusted and therefore the result of ethical decisions
Technological advancement A. Has replaced accounting. B. Has not changed the work that accountants do. C. Has freed accounting professionals to concentrate more on the analysis and interpretation of information. D. In accounting has replaced the need for decision makers. E. In accounting is only available to large corporations.
C. Has freed accounting professionals to concentrate more on the analysis and interpretation of information
Congress passed the Sarbanes-Oxley Act to A. Provide jobs to U.S. accountants and limit the number of jobs sent outside the country. B. Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports, although at this time the penalties are token amounts. C. Help curb financial abuses at companies that issue their stock to the public. D. Force auditors to attest to the absolute accuracy of the financial statements. E. Require that all companies publicly disclose their internal control plans.
C. Help curb financial abuses at companies that issue their stock to the public.
Planning activities: A. Are the means organizations must use to pay for resources. B. Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services. C. Involve defining the ideas, goals, and actions of an organization D. Are the carrying out of an organization's plans. E. Involve using resources to research, develop, purchase, produce, and market products and services.
C. Involve defining the ideas, goals, and actions of an organization
Unearned revenues are: A. Revenues that have been earned and received in cash. B. Revenues that have been earned but not yet collected in cash. C. Liabilities created when a customer pays in advance for products or services before the revenue is earned. D. Recorded as an asset in the accounting records. E. Increases to retained earnings.
C. Liabilities created when a customer pays in advance for products or services before the revenue is earned.
Another name for equity is: A. Net income B. Expenses C. Net assets D. Revenue E. Net loss
C. Net assets
An example of an investing activity is: A. Paying wages of employees. B. Paying dividends. C. Purchasing land. D. Selling inventory. E. Contribution from owner.
C. Purchasing land
The principle that (A) requires revenue to be recognized at the time it is earned, (B) allows the inflow of assets associated with revenue to be in a form other than cash, and (C) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the: A. Going-concern principle B. Cost principle C. Revenue recognition principle D. Objectivity principle E. Business entity principle
C. Revenue recognition principle
Which of the following list of events properly reflects the early steps taken in the accounting process? A. Record relevant transactions, post journal information to ledger accounts, analyze each transaction, and prepare and analyze the trial balance. B. Post journal information to ledger accounts, analyze each transaction, post journal information to ledger accounts, and prepare and analyze the trial balance. C. Prepare and analyze the trial balance, analyze each transaction, post journal information to ledger accounts, record relevant transactions. D. Analyze each transaction, post journal information to ledger accounts, record relevant transactions, and prepare and analyze the trial balance. E. Analyze each transaction, record relevant transactions, post journal information to ledger accounts, and prepare and analyze the trial balance.
E. Analyze each transaction, record relevant transactions, post journal information to ledger accounts, and prepare and analyze the trial balance.
A collection of all accounts (with account balances) used by a business is called a: A. Journal B. Book of original entry C. General Journal D. Balance column journal E. General Ledger
E. General Ledger
The organization that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the: A. AICPA B. FASB C. CAP D. SEC E. IASB
E. IASB
Creditors' claims on the assets of a company are called: A. Net losses B. Expenses C. Revenues D. Equity E. Liabilities
E. Liabilities
Internal users of accounting information include: A. Shareholders B. Customers C. Creditors D. Government regulators E. Production managers
E. Production Managers
Which of the following elements are found on the balance sheet? A. Service revenue B. Net income C. Operating activities D. Utilities expense E. Retained earnings
E. Retained Earnings
On December 15, 2013, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2014. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2014 and not 2013? A. Monetary unit principle B. Going-concern principle C. Cost principle D. Business entity principle E. Revenue recognition principle
E. Revenue recognition principle
Which of the following elements are found on the income statement? A. Cash B. Accounts receivable C. Common stock D. Retained earnings E. Salaries expense
E. Salaries expense
The financial statement that shows beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the: A. Statement of financial position. B. Statement of cash flows. C. Balance sheet. D. Income statement. E. Statement of retained earnings.
E. Statement of retained earnings.
Which accounting assumption assumes that all accounting information can be reported monthly or yearly? A. Business entity assumption B. Monetary unit assumption C. Value assumption D. Cost assumption E. Time period assumption
E. Time period assumption
Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet? A. ABC Company, For the year ended 12/31/13, Balance Sheet B. For the year ended 12/31/13, Balance Sheet, ABC Company C. Balance Sheet, 12/31/13, ABC Company D. 12/31/13, ABC Company, Balance Sheet E. ABC Company, Balance Sheet, 12/31/13
E.ABC Company, Balance Sheet, 12/31/13
