121.
Which of the following statements about a company’s operating cycle is
not
true?
122.
Use the information in the adjusted trial balance presented below to calculate current
assets for Taron Company, Inc.:
Dr.
Cr.
23,000
16,000
6,600
100,000
50,000
95,000
17,000
2,400
5,000
30,000
1,000
135,200
240,600
240,600
123.
Use the information in the adjusted trial balance presented below to calculate the current
ratio for Taron Company, Inc.:
Dr.
Cr.
23,000
16,000
6,600
100,000
50,000
95,000
17,000
2,400
5,000
30,000
1,000
135,200
240,600
240,600
124.
Which of the following statements regarding reporting under GAAP and IFRS is
not
true?
125.
The following information is available for Brendon Company, Inc. before closing the
accounts. What will be the amount in the Income Summary account that should be closed
to Retained Earnings?
Retained earnings
112,000
Dividends
32,000
Fees earned
187,000
Depreciation Expense—Equipment
12,000
Wages expense
71,400
Interest expense
3,300
Insurance expense
11,700
Rent expense
24,200
126.
Flagg, Inc. records adjusting entries at its December 31 year end. At December 31,
employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is
January 3, at which time $30,000 will be paid. Prepare the January 1 journal entry to
reverse the effect of the December 31 salary expense accrual.
127.
Flagg, Inc. records adjusting entries at its December 31 year end. At December 31,
employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is
January 3, at which time $30,000 will be paid. Prepare the journal on January 3 to record
payment assuming the adjusting and reversing entries were made on December 31 and
January 1.
128.
Which of the following accounts would be included in a post-closing trial balance?
129.
Palmer Company, Inc. is at the end of its annual accounting period. The accountant has
journalized and posted all external transactions and all adjusting entries, had prepared an
adjusted trial balance, and completed the financial statements. The next step in the
accounting cycle is:
130.
A broad principle that requires identifying the activities of a business with specific time
periods such as months, quarters, or years is the:
131.
Interim financial statements refer to financial reports that:
132.
The length of time covered by a set of periodic financial statements, normally a year for
most companies, is referred to as the:
133.
The accounting principle that requires revenue to be recorded when earned is the:
134.
Adjusting entries:
135.
The broad principle that requires expenses to be reported in the same period as the
revenues that were earned as a result of the expenses is the:
136.
The system of preparing financial statements based on recognizing revenues when the
cash is received and reporting expenses when the cash is paid is called:
137.
The approach to preparing financial statements based on recognizing revenues when they
are earned and matching expenses to those revenues is:
138.
Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued
revenues are all examples of:
139.
A company made no adjusting entry for accrued and unpaid employee wages of $28,000
on December 31. This oversight would:
140.
If a company mistakenly forgot to record depreciation on office equipment at the end of an
accounting period, the financial statements prepared at that time would show:
141.
If a company failed to make the end–of-period adjustment to move the amount of
management fees that were earned from the Unearned Management Fees account to the
Management Fees Revenue account, this omission would cause:
142.
Profit margin is defined as:
143.
A company earned $3,000 in net income for October. Its net sales for October were
$10,000. Its profit margin is:
144.
A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for
the same period. Calculate its profit margin.
145.
On July 1 Plum Co. paid $7,500 cash for management services to be performed over a two–
year period. Plum follows a policy of recording all prepaid expenses to asset accounts at
the time of cash payment. On July 1 Plum should record:
146.
An account linked with another account that has an opposite normal balance and is
subtracted from the balance of the related account is a(n):
147.
The total amount of depreciation recorded against an asset over the entire time the asset
has been owned:
148.
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:
149.
If throughout an accounting period the fees for legal services paid in advance by clients
are recorded in an account called Unearned Legal Fees, the end–of-period adjusting entry
to record the portion of those fees that has been earned is:
150.
On July 1, a company paid the $2,400 premium on a one-year insurance policy with
benefits beginning on that date. What will be the insurance expense on the annual income
statement for the current year ended December 31?