BUS 591_Quiz week 2
1. When a company receives a utility bill but will not pay it right away, it should (Points : 1)
debit Utilities Expense and credit Accounts Receivable.
debit Utilities Expense and credit Accounts Payable.
debit Accounts Payable and credit Utilities Expense.
make no entry until the bill is paid.
2. Is the purchase of equipment treated as an expense at the time of purchase? Why or why not? (Points : 1)
No, GAAP requires that 10% of the cost be expensed each year. This minimizes attempts to mislead financial statement users.
Yes, the matching principle requires that the cost be expensed in the period of purchase.
No, the cost needs to be allocated to the years of expected use.
Yes, the actual life of the asset is not known, thus there is no acceptable way to allocate the cost.
3. Unearned revenue is classified as a(n): (Points : 1)
contra revenue account.
4. Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting.
Cash received from customers $44,000
Accounts receivable 12,000
Cash paid for expenses 26,000
Accounts payable (related to expenses) 3,000
Prepaid rent for next period 7,000
(Points : 1)
5. The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is: (Points : 1)
debit Laundry Supplies Expense, $2,000; credit Laundry Supplies, $2,000.
debit Laundry Supplies, $4,500; credit Laundry Supplies Expense, $4,500.
debit Laundry Supplies, $2,000; credit Laundry Supplies Expense, $2,000.
debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500.
6. In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a (Points : 1)
$800 credit balance.
$400 debit balance.
$1,200 debit balance.
$400 credit balance.
7. Which of the following accounts has a normal credit balance? (Points : 1)
8. The following is selected information from C Corporation for the fiscal year ending October 31, 2011.
Cash received from customers $150,000
Revenue earned 195,000
Cash paid for expenses 85,000
Cash paid for computers on November 1, 2010 that
will be used for 3 years
Expenses incurred including any depreciation 109,000
Proceeds from a bank loan, part of which was used to
pay for the computers
Based on the accrual basis of accounting, what is C Corporation’s net income for the year ending October 31, 2011? (Points : 1)
9. Expenses are recognized when: (Points : 1)
they contribute to the production of revenue.
they are paid.
they are billed by the supplier.
the invoice is received.
10. Assets normally show (Points : 1)
debit and credit balances.
debit or credit balances.
Why Choose Us
We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.
Professional Academic Writers
Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.
Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.
We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.
At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.
Customer Support 24/7
Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: email@example.com.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.
At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.
Admission and Business Papers
Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.
Editing and Proofreading
Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.
We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.