MGMT-X 120A - Ch. 3 Quiz

collected and not currently matched with expenses.

An unearned revenue can best be described as an amount not collected and currently matched with expenses. collected and currently matched with expenses. not collected and not currently matched with expenses. collected and not currently matched with expenses.

$27,500

Chen Company's account balances at December 31, 2020 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales during 2020 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for $27,500 $29,000 $26,000 $8,000

$160,000

Colaw Co. pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Colaw accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows:Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20.Overtime pay earned in the 2-week period ended 12/26/20 was $25,000.Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime.The recurring biweekly salaries total $450,000.Assuming a five-day workweek, Colaw should record a liability at December 31, 2020 for accrued salaries of $295,000 $135,000 $270,000 $160,000

December 31, 2021

Icon International, a software company, incorporated on January 1, 2019 is planning to convert to IFRS. The company decided to present its first IFRS statements for the year ended December 31, 2021. What is the reporting date of Icon International? December 31, 2021 January 1, 2019 December 31, 2019 January 1, 2021

debit Rent Revenue and credit Unearned Rent Revenue, $4,500.

Lopez Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is debit Unearned Rent Revenue and credit Rent Revenue, $13,500. debit Rent Revenue and credit Unearned Rent Revenue, $4,500. debit Rent Revenue and credit Unearned Rent Revenue, $13,500. debit Unearned Rent Revenue and credit Rent Revenue, $4,500.

To provide financial statement users with comparable information

Which of the following is a reason for recasting prior financial statements based on IFRS? To increase the market value of a company's shares To report a low taxable income reducing the tax liability To report a high income for attracting investors To provide financial statement users with comparable information

It proves that debits and credits were properly entered in the ledger accounts.

Which of the following is not a principal purpose of an unadjusted trial balance? It proves that debits and credits of equal amounts are in the ledger. It proves that debits and credits were properly entered in the ledger accounts. It supplies a listing of open accounts and their balances. It is the basis for any adjustments to the account balances.

Dividend declaration and subsequent payment

Which of the following is not an internal event? Dividend declaration and subsequent payment All of these are internal transactions. Depreciation Using raw materials in the production process

Identifying the timing of first IFRS statement

Which of the following is the first step to be taken by a company deciding to convert to IFRS? Selecting accounting principles that comply with IFRS Implementing accounting principles retrospectively Identifying the timing of first IFRS statement Preparing an opening balance sheet at the date of transition

To match the costs of production with revenues as recognized

Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles? To reduce the federal income tax liability To adhere to the accounting constraint of conservatism To aid management in cash-flow analysis To match the costs of production with revenues as recognized