ACC 3 - There are 24 questions. All basic accounting....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
There are 24 questions. All basic accounting. Please answer all of them. Multiple 1. Information related to the Franklin Company for the calendar year 2010 follows: Assuming no capital stock was issued during 2010, the net income earned by the Jones Company during 2010 was a. $290 b. $110 c. $260 d. $200 2. Which of the following is an economic resource that should be depreciated over the accounting periods estimated to be benefited? a. equipment purchased for use in the business operations b. rent collected in advance for a three-year rental period c. interest revenue accrued on investment in bonds d. salaries incurred but unpaid at year-end Which of the following errors will be detected by a trial balance? a. incorrectly computing the balance of the cash account b. forgetting to post a purchase transaction at all c. failure to journalize a sales transaction at all d. posting a credit to Sales instead of to Accounts Payable A prepaid expense is
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. a payment received by the company in advance for the future sale of inventory or performance of services b. an item that has been earned by the company during the accounting period but has been neither received nor recorded c. an expense that has been incurred during the accounting period but has been neither paid nor recorded d. an item of goods or services purchased by the company for use in its operations but not fully consumed by the end of the accounting period The Cosmo Construction Company received $12,000 for six months rental income in advance on November 1, 2010, and credited the Rental Revenue account. The required adjusting entry on December 31, 2010, would include a a. debit to Rental Revenue for $8,000 b. debit to Rental Revenue for $4,000 c. credit to Rental Revenue for $4,000 d. credit to Rental Receivable for $8,000 On August 1, 2010, Green Company paid $4,320 for a three-year insurance policy. On that date, an expense account was charged. In the adjusting entry on December 31, 2010, there would be a a. debit to Insurance Expense for $600 b. credit to Insurance Expense for $3,720
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/02/2010 for the course ACC 201 taught by Professor Unknown during the Spring '10 term at Nassau CC.

Page1 / 7

ACC 3 - There are 24 questions. All basic accounting....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online