Chap 3 - 1 Accounting information is useful for several kinds of decisions For which decision situation would accounting information NOT be useful

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1. Accounting information is useful for several kinds of decisions. For which decision situation would accounting information NOT be useful? c. Production managers evaluating the quality of materials used in manufacturing. ________________________________________ 2. The idea that the business will continue to operate for the foreseeable future is known as the: c. going concern assumption. ________________________________________ 3. When transactions are posted from the book of original entry, they are posted to the: b. general ledger. ________________________________________ 4. During 2005, the Latrex Corporation had cash and credit sales of $47,000 and $45,500 respectively. The company also collected accounts receivable of $26,700 and incurred expenses of $68,500, 80 percent of which were paid during the year. In addition, Latrex paid $24,000 for a 12-month building rental, beginning on July 1, 2005. Latrex's accrual- basis net income (loss) for 2005 was: a. $12,000. ______________________________________ 5.
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A purchase of $900 of supplies on account was journalized and posted as a $900 debit to Supplies on Hand and a $900 credit to Accounts Receivable. The entry to correct this error is: c. a $900 debit to Accounts Receivable and a $900 credit to Accounts Payable. ________________________________________ 6.
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This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

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Chap 3 - 1 Accounting information is useful for several kinds of decisions For which decision situation would accounting information NOT be useful

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