Unformatted text preview: B. (1 0 Points) Multiple Choice 7 Select the best answer for each of the following questions. Remember
to place your answers on to the separate answer sheet. 1. Which of the following would not be a correct form for an adjusting entry? a. A debit to revenue and a credit to a liability t/ inrnkpz 92V . b. A debit to an expense and a credit to a liability Prcc (ch 5K P ~ c. A debit to a liability and a credit to revenue ‘1wa 31" d. A debit to an expense and a credit to a contra asset 0L? / Lam-J 9445+
gel? A debit to an asset and a credit to a liability / When an item of revenue or expense has been earned or incurred but not yet
collected or paid, it is normally called a(n) W revenue or expense. a. prepaid b. adjusted c. estimated d. nadjusted
gone of these
What accounting concept justiﬁes the usage of accruals and deferrals?
Going concern assumption _b’ Materiality constraint -
c. Consistency characteristic .1.
d. Monetary unit assumption 1—
e. Conservatism principle 'l' A common set of accounting standards and procedures is called:
Financial accounting standards.
, Generally accepted accounting principles. ~
0. Objectives of ﬁnancial reporting.
d. Statements of ﬁnancial accounting concepts. -
e. Financial accounting reporting releases. - Strawser Corporation received cash of $12,000 on August 1, 2006 for one year's
rent in advance and recorded the transaction with a credit to Rent Revenue. The
Becernber 31, 2006 adjusting entry is: . Debit Rent Revenue and credit Uneained Rent, $7,000. ‘ . Debit Rent Revenue and credit Unearned Rent, $5,000.
0. Debit Uneamed Rent and credit cht Revenue, $5,000.
d. Debit Cash and credit Unearned Rent, $7,000. ...
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- Spring '08