My Subscriptions / Courses / ACC110:Spring 2018-Intro to Financial REporting / Chapter 3 / Chapter 3 Quiz Started on Friday, 9 February 2018, 9:42 PM State Finished Completed on Friday, 9 February 2018, 9:51 PM Time taken 9 mins 28 secs Marks 12.00/12.00 Grade 10.00 out of 10.00 ( 100 %) QUESTION 1 Correct Mark 1.00 out of 1.00 The expense recognition (matching) principle is best described as: Select one: Recording only those items on the financial statements that can be expressed in monetary terms The notion that the company will operate in the future Record an expense in the same time period that the corresponding revenue is recorded When in doubt, understate assets and sales revenue and overstate liabilities and expenses The correct answer is: Record an expense in the same time period that the corresponding revenue is recorded
QUESTION 2 Correct Mark 1.00 out of 1.00 On December 1, Optima Corp. paid $6,000 for rent expense covering December, January and February rent. On December 31, after all adjusting entries, Optima Inc. will report Prepaid Rent of: Select one: $6,000 $4,000 $2,000 $0 The correct answer is: $4,000
QUESTION 3 Correct Mark 1.00 out of 1.00 On November 1, Smith & Sons purchased communication equipment costing $96,000. The equipment will be depreciated over 48 months. The adjusting entry at November 30 would be: Select one: Account Name Debit Credit Depreciation expense 2,000 Accumulated depreciation 2,000 $96,000/48 months Account Name Debit Credit Depreciation expense 2,500 Accumulated depreciation 2,500 Account Name Debit Credit Accumulated depreciation 2,000 Depreciation expense 2,000 Account Name Debit Credit Accumulated depreciation 2,500
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