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    ACC202 PCOQ 1 Real

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    Gish KK.G
    The document contains sample accounting questions and answers that cover topics like journal entries, adjusting entries, financial statements, accounting equations, and more. Some key points addressed include defining accrued expenses and prepaid expenses as items that require adjusting entries, recording a cash payment with a debit to an expense account, and explaining that accrual basis accounting matches revenues to expenses.

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    ACC202 PCOQ 1 Real

    Uploaded by

    Gish KK.G
    132 views3 pages
    The document contains sample accounting questions and answers that cover topics like journal entries, adjusting entries, financial statements, accounting equations, and more. Some key points addressed include defining accrued expenses and prepaid expenses as items that require adjusting entries, recording a cash payment with a debit to an expense account, and explaining that accrual basis accounting matches revenues to expenses.

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    The document contains sample accounting questions and answers that cover topics like journal entries, adjusting entries, financial statements, accounting equations, and more. Some key points addressed include defining accrued expenses and prepaid expenses as items that require adjusting entries, recording a cash payment with a debit to an expense account, and explaining that accrual basis accounting matches revenues to expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    132 views3 pages

    ACC202 PCOQ 1 Real

    Uploaded by

    Gish KK.G
    The document contains sample accounting questions and answers that cover topics like journal entries, adjusting entries, financial statements, accounting equations, and more. Some key points addressed include defining accrued expenses and prepaid expenses as items that require adjusting entries, recording a cash payment with a debit to an expense account, and explaining that accrual basis accounting matches revenues to expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    (Def Cor)

    Something something increases revenue…:

    (Def cor) I put earnings.

    Solid Industries received its telephone bill in the amount of $300, and immediately paid it. Solid's
    general journal entry to record this transaction will include a

    (Def Cor) Debit to Telephone Expense for $300.

    Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all
    examples of:

    (Def Cor) Items that require adjusting entries.

    Increases in equity from a company's earnings activities are:

    Revenues

    The adjusting entry to record an accrued expense is:

    Increase an expense; increase a liability.

    Robin Lee opened an art gallery and as a dealer completed these transactions:

    I. Started the gallery, Expression, by investing $40,000 cash and equipment valued at $18,000.

    II. Purchased $70 of office supplies on credit.

    III. Paid $1,200 cash for the receptionist's salary.

    IV. Sold a painting for an artist and collected a $4,500 cash commission on the sale.

    V. Completed an art appraisal and billed the client $200.

    What was the balance of the cash account after these transactions were posted?

    $43,300.

    Double-entry accounting is an accounting system:

    That records the effects of transactions and other events in at least two accounts with equal debits
    and credits.
    If a company failed to make the end-of-period adjustment to remove from the Unearned
    Management Fees account the amount of management fees that were earned, this omission would
    cause:

    An overstatement of liabilities.

    Rent expense that is paid with cash appears on which of the following statements?

    Income statement and statement of cash flows.

    Solid Industries received its telephone bill in the amount of $300, and immediately paid it. Solid's
    general journal entry to record this transaction will include a

    Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all
    examples of:

    Items that require adjusting entries.

    Decreases in equity that represent costs of assets or services used to earn revenues are called:

    Expenses

    The share capital of a company may consist of:

    Ordinary or preference shares issued by the company either fully paid or partly paid.

    A promissory note:

    Is a written promise to pay a specified amount of money at a certain date.

    Teh's accounts receivable turnover was 9.9 for this year and 11.0 for last year. Kopi's accounts
    receivable turnover was 9.3 for this year and 9.3 for last year. These results imply that:

    Teh has the better turnover for both years.

    The accounts receivable turnover measures:

    How often, on average, receivables are received and collected during the period.

    The understatement of the ending inventory balance causes:

    Cost of goods sold to be understated and net profit to be understated.


    Which of the following statements is correct?

    Promises of future payment by customers are called accounts receivable.

    Internal control procedures for cash receipts require that:

    All of the listed choices.

    An accounting procedure that (1) estimates and reports bad debts expense from credit sales during
    the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of
    cash to be collected is the:

    Allowance method of accounting for bad debts.

    The maturity date of a note receivable:

    Is the day the note is due to be repaid.

    If the credit balance of the Allowance for Doubtful Accounts exceeds the amount of a bad debt being
    written off, the entry to record the write-off against the allowance account results in:

    The approach to preparing financial statements based on recognizing revenues when they are
    earned and matching expenses to those revenues is:

    No effect on the expenses of the current period.

    The approach to preparing financial statements based on recognizing revenues when they are
    earned and matching expenses to those revenues is:

    Accrual basis accounting.

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