exam 1 2036 test multiple choice questions??

amounts the company expects to collect for previous credit sales

Accounts receivable are a)amounts the company expects to pay for previous credit sales b)amounts the company expects to collect for previous credit sales c)reported in the liabilities section of the balance sheet d)reported on the income statement

at the end of the accounting period

Adjusting entries are typically prepared: a)at the beginning of the accounting period b)at the end of the accounting period c)on a daily basis d)on a weekly basis

revenues

Adjustments help to ensure all _________ are recorded in the period in which they are earned a)revenues b)cash transactions c)closing entries d)journal entries

fulfilled within one year

Current liabilities are expected to be a)converted to cash within one year b)fulfilled within one year c)used in the business within one year d)acquired within one year

they are always listed on the left side of the account

How do debits appear in a T-account?

18 million

If Blair Industries had $24 million in revenue and net income of $6 million, then its expenses were what

it has purchased a significant amount of equipment

If a company reports a negative dollar amount under cash flows from investing activities, a possible explanation is that a)it has purchased a significant amount of equipment b)its expenses are greater than its revenues c)the market value of its stock has gone down d)it has paid a large cash dividend to its stockholders

dividends

Net income that has been paid out to the company's stockholders for their own personal use is referred to as

30,000

Puffin Company began the year with assets of $120,000 and liabilities of $90,000. During the year assets increased by $14,400 and liabilities decreased by $10,800. What is the amount of Puffin's stockholders' equity at the beginning of the year? a)$0 b)$30,000 c)$210,000 d)$120,000

has a normal credit balance

The Accounts Payable account: a)has a normal credit balance b)is increased by a debit c)is an asset d)is increased when a company receives cash from customers

statement of retained earnings

The Publish or Perish Printing Company paid a dividend to stockholders. This will be reported on the

when costs are recognized as expenses on the income statement

The expense recognition principle ("matching") indicates: a)where on the income statement expenses should be presented b)when revenues are recognized on the income statement c)the ordering of current assets and current liabilities on the balance sheet d)when costs are recognized as expenses on the income statement

8,000

The net income for Year 1 (the first year of operations for the company) was $20,000 and dividends of $12,000 were paid. In Year 2, the company reported net income of $34,000 and paid dividends of $5,000. At the end of Year 1, the company had total assets of $150,000. At the end of Year 2, the company had total assets of $240,000. What was the amount of retained earnings at the end of Year 1? a)$20,000 b)$8,000 c)$150,000 d)$155,000

measures how much profit from each dollar of revenue

The net profit margin: a)measures how much profit from each dollar of revenue b)means improved performance if it decreases c)means weaker performance if it increases d)measures the percentage of assets financed by debt

cash is paid in advance of recognizing an expense

The term deferral best describes a situation in which: a)cash is paid in advance of recognizing an expense b)an expense is recognized before it is paid for with cash c)an expense is recognized after cash has been recieved d)a liability is established at the time an expense is recognized

whether current assets are sufficient to pay current liabilities

What does the current ratio measure? a)the relative proportion of current versus noncurrent assets b)whether current assets are sufficient to pay current liabilities c)the speed which current assets can be converted to cash d)whether cash is sufficient to pay current liabilities

revenue

When a deferral adjustment is made to a liability account, that liability becomes a(n): a)asset b)other liability c)expense d)revenue

accounts receivable

Which account would be decreased with credit? a)retained earnings b)accounts receivable c)common stock d)notes payable

supplies

Which account would be increased with a debit? a)supplies b)accounts payable c)common stock d)retained earnings

assets, liabilities, stockholders equity

Which of the following are the three basic elements of the balance sheet

an expense has been incurred but not yet paid in cash

Which of the following best describes when an accrual adjustment is required? a)an expense has been incurred and paid in cash b)an expense has been incurred but not yet paid in cash c)an expense has not been incurred, but cash has been paid d)an expense has not been incurred nor has it been paid in cash

Debit Accounts Payable and credit Cash for $5,000

Which of the following is the journal entry that will be used to record "Made payments to suppliers on account, $5,000"? a)Debit Operating Expense and credit Cash for $5,000 b)Debit Accounts Payable and credit Cash for $5,000 c)Debit Accounts Payable and credit Operating Expense for $5,000 d)Debit Cash and credit Accounts Payable for $5,000

total debits should equal total credits

Which of the following statements is correct about the unadjusted trial balance? a)only balance sheet accounts are listed b)typically, accounts are listed in order of all debit balance accounts first and all credit balance accounts next c)when it balances, transactions have been properly recorded d)total debits should equal total credits

a notes payable due January 15, Year 3

Which of the following would be classified as noncurrent liability in the balance sheet at December 31, Year 1? a)an accounts payable due on January 30, Year 2 b)a notes payable due November 30, Year 2 c)a note receivable that matures on April 30, Year 3 d)a notes payable due January 15, Year 3