Question 1

Which of the following is an example of an intangible asset?

Accepted Answer

A) Goodwill 
B) Patents 
C) Copyrights 
D) All of these 
A) Goodwill 
B) Patents 
C) Copyrights 
D) All of these

Question 2

UNI Co.received $1,000 from Newbie as rent for the use of a building owned by UNI.How does this transaction affect UNI's accounts if UNI recognizes a liability?

Accepted Answer

A) Cash is increased and revenue is increased. 
B) Cash is increased and revenue is decreased. 
C) Cash is increased and unearned revenue is increased. 
D) It is not recorded. 
A) Cash is increased and revenue is increased. 
B) Cash is increased and revenue is decreased. 
C) Cash is increased and unearned revenue is increased. 
D) It is not recorded.

Question 3

As time passes,fixed assets,other than land,lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

Accepted Answer

A) equipment allocation. 
B) depreciation. 
C) accumulation. 
D) matching. 
A) equipment allocation. 
B) depreciation. 
C) accumulation. 
D) matching.

Question 4

Every company must use the cash basis of accounting.

Accepted Answer

A) True 
 B)False

Question 5

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

Accepted Answer

A) the cash flows from financing activities section. 
B) the cash flows from investing activities section. 
C) a separate schedule. 
D) the cash flows from operating activities section. 
A) the cash flows from financing activities section. 
B) the cash flows from investing activities section. 
C) a separate schedule. 
D) the cash flows from operating activities section.

Question 6

The following assets are included in Bruce Auto Parts,Inc.'s December 31,2010,balance sheet.
 
The total dollar amount of assets classified as property,plant,and equipment on Ace Auto Parts' December 31,2010,classified balance sheet is

Accepted Answer

A) $200,000. 
B) $230,000. 
C) $240,000. 
D) $310,000. 
A) $200,000. 
B) $230,000. 
C) $240,000. 
D) $310,000.

Question 7

Identify the type of adjustment necessary (the type of item involved)and record the transaction for the event.Make sure to include the ending balances after adjustment.
Assume Tasty Sausage Corp.pays salaries on the 28th of each month.Sausage stuffers earn $200/day with a 7-day work week.June 30th is the end of the accounting period.Sausage stuffers have worked on the 29th and 30th but have not yet been paid for those days.The June 30 adjustment is:

Accepted Answer

Item: Accr

Question 8

Current assets are assets that are expected to be converted to cash,sold or used up within
6 months.

Accepted Answer

A) True 
 B)False

Question 9

ABN Company sold goods,receiving $20,000 in cash and $25,000 on credit.How much revenue should it record under the accrual basis of accounting?

Accepted Answer

A) $5,000 
B) $25,000 
C) $20,000 
D) $45,000 
A) $5,000 
B) $25,000 
C) $20,000 
D) $45,000

Question 10

Using accrual accounting,revenue is recorded and reported only

Accepted Answer

A) when cash is received without regard to when the services are rendered. 
B) when the services are rendered without regard to when cash is received. 
C) when cash is received at the time services are rendered. 
D) if cash is received after the services are rendered. 
A) when cash is received without regard to when the services are rendered. 
B) when the services are rendered without regard to when cash is received. 
C) when cash is received at the time services are rendered. 
D) if cash is received after the services are rendered.

Which of the following is an example of an intangible asset?

UNI Co.received $1,000 from Newbie as rent for the use of a building owned by UNI.How does this transaction affect UNI's accounts if UNI recognizes a liability?

As time passes,fixed assets,other than land,lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

Every company must use the cash basis of accounting.

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

The following assets are included in Bruce Auto Parts,Inc.'s December 31,2010,balance sheet. The total dollar amount of assets classified as property,plant,and equipment on Ace Auto Parts' December 31,2010,classified balance sheet is

Current assets are assets that are expected to be converted to cash,sold or used up within 6 months.

ABN Company sold goods,receiving $20,000 in cash and $25,000 on credit.How much revenue should it record under the accrual basis of accounting?

Using accrual accounting,revenue is recorded and reported only

The Role of Accounting in Business

Basic Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 3: Accrual Accounting Concepts

Which of the following is an example of an intangible asset?

UNI Co.received $1,000 from Newbie as rent for the use of a building owned by UNI.How does this transaction affect UNI's accounts if UNI recognizes a liability?

As time passes,fixed assets,other than land,lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

Every company must use the cash basis of accounting.

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

The following assets are included in Bruce Auto Parts,Inc.'s December 31,2010,balance sheet. The total dollar amount of assets classified as property,plant,and equipment on Ace Auto Parts' December 31,2010,classified balance sheet is

Current assets are assets that are expected to be converted to cash,sold or used up within 6 months.

ABN Company sold goods,receiving $20,000 in cash and $25,000 on credit.How much revenue should it record under the accrual basis of accounting?

Using accrual accounting,revenue is recorded and reported only

The Role of Accounting in Business

Basic Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters