2-Chapter 2 Review Questions - BB

2-Chapter 2 Review Questions - BB - Chapter 2 Review...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2 Review Questions 1. In 2011, Capri Company paid $5,000 for advertising that had appeared in 2010. As a result of the transaction, a. Capri should recognize an expense of $5,000 in 2011. b. Capri’s assets in 2011 were not affected. c. Capri’s 2011 cash flow from operating activities would decrease by $5,000. d. Both b and c. Use the following information to answer the next two questions. BBC Company received $9,900 cash on February 1, 2010, from XYZ Company as advance payment for services BBC promised to perform for XYZ over the next three years on a continuous basis. 2. On its 2010 income statement, BBC would report revenue of a. $3,300. b. $9,900. c. $3,025. d. $2,750. 3. On its December 31, 2011 balance sheet BBC would report liabilities (unearned revenue) of a. $3,575. b. $3,300. c. $9,900. d. $6,875. 4. Moe Company paid $12,000 cash in advance for a one-year insurance policy on August 1, 2010. The company recorded this purchase as prepaid insurance. If the company fails to make the appropriate
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/10/2011 for the course ACC 201 taught by Professor Cromartie during the Spring '11 term at UNC Greensboro.

Page1 / 2

2-Chapter 2 Review Questions - BB - Chapter 2 Review...

This preview shows document pages 1 - 2. Sign up to view the full document.

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