Statements that show the effects


Asked by 2 years ago
392.9k points

Statements that show the effects of proposed transactions as if the transactions had already occurred are called
Pro forma statements
Professional statements
Simplified Statements
Temporary Statements
On April 1, 2007, a company paid the \$1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2007?
\$1,350
\$450
\$1,012.50
\$337.50
Accounts payable appear on which of the following statements?
balance sheet
income statement
statement of owner's equity
statement of cash flows
Prior to recording adjusting entries, the Office Supplies account had a \$359 debit balance. A physical count of the supplies showed \$105 of unused supplies available. The required adjusting entry is:
debit Office Supplies \$105 and credit Office Supplies Expense \$105
debit Office Supplies Expense \$105 and credit Office Supplies \$105
debit Office Supplies Expense \$254 and credit Office Supplies \$254
debit Office Supplies \$254 and credit Office Supplies Expense \$254
The recurring steps performed each accounting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:
accounting period
operating cycle
accounting cycle
closing cycle
Determine the net income of a company for which the following information is available for the month of May
\$190,000
\$210,000
\$230,000
\$400,000
Two common subgroups for liabilities on a classified balance sheet are
current liabilities and intangible liabilities
present liabilities and operating liabilities
general liabilities and specific liabilities
current liabilities and long-term liabilities
Net Income:
decreases equity
represents the amount of assets owners put into a business
equals assets minus liabilities
is the excess of revenues over expenses
A company purchased a new truck at a cost of \$42,000 on July 1, 2008. The truck is estimated to have a useful life of 6 years and a salvage value of \$3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2008?
\$3,250
\$3,500
\$4,000
\$6,500
If assets are \$99,000 and liabilities are \$32,000, then equity equals:
\$32,000
\$67,000
\$99,000
\$131,000
Discuss how accrual accounting enhances the usefulness of financial statements.
What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?
Statements that show the effects of proposed transactions as if the transactions had already occurred are called:
Answer PRO FORMA STATEMENTS
Pro forma statements.
Professional statements.
Simplified statements.
Temporary statements.
4 points
Question 2
On April 1, 2007, a company paid the \$1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2007?
Answer \$337.50
\$1,350 for 36 months means \$37.5 a month. April 1, 2007 to December 31, 2007 = 9 months, so \$37.5 x 9 = \$337.50.
\$1,350
\$450
\$1,012.50
\$337.50
Question 3
Accounts payable appear on which of the following statements?
Answer BALANCE SHEET
balance sheet
income statement
statement of owner's equity
statement of cash flows
4 points
Question 4
Prior to recording adjusting entries, the Office Supplies account had a \$359 debit balance. A physical count of the supplies showed \$105 of unused supplies available. The required adjusting entry is:
Answer debit Office Supplies Expense \$254 and credit Office Supplies \$254
debit Office Supplies \$105 and credit Office Supplies Expense \$105.
debit Office Supplies Expense \$105 and credit Office Supplies \$105.
debit Office Supplies Expense \$254 and credit Office Supplies \$254.
debit Office Supplies \$254 and credit Office Supplies Expense \$254.
4 points
Question 5
The recurring steps performed each accounting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:
Answer Accounting Cycle
accounting period.
operating cycle.
accounting cycle.
closing cycle.
4 points
Question 6
Net income = Consulting revenue Employee salaries expenses Rent expenses Interest expenses
= 400000 180000 20000 10000
= \$190000
Determine the net income of a company for which the following information is available for the month of May.
Employee salaries expense \$180,000 Interest expense \$10,000 Rent Expense \$20,000 Consulting revenue \$400,000
Answer \$190,000
\$190,000
\$210,000
\$230,000
\$400,000
4 points
Question 7
Two common subgroups for liabilities on a classified balance sheet are:
Answer current liabilities and long-term liabilities
current liabilities and intangible liabilities.
present liabilities and operating liabilities.
general liabilities and specific liabilities.
current liabilities and long-term liabilities.
4 points
Question 8
Net Income:
Answer is the excess of revenues over expenses
decreases equity.
represents the amount of assets owners put into a business.
equals assets minus liabilities.
is the excess of revenues over expenses.
4 points
Question 9
A company purchased a new truck at a cost of \$42,000 on July 1, 2008. The truck is estimated to have a useful life of 6 years and a salvage value of \$3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2008?
Answer \$6,500
\$3,250
\$3,500
\$4,000
\$6,500
Question 10
If assets are \$99,000 and liabilities are \$32,000, then equity equals:
Answer \$67,000
\$32,000.
\$67,000.
\$99,000.
\$131,000.

1 Answer

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 Statements that show the effects

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