chap 5 - 1.

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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.  Which of the following is NOT normally considered to be an asset?  a. Retained earnings  ________________________________________ 3.  Wagner Inc. had a beginning cash balance of $14,000 on January 1, 2005. During January, the  company recorded debits of $23,000 and credits of $25,000 to the cash account. The ending  cash balance on January 31 would be a:  c. debit balance of $12,000.  ________________________________________ 4.  A revenue that is collected before it has been earned is called a(n):  d. unearned revenue.  ________________________________________ 5.  Failure to record the used portion of prepaid rent during the month has the following effect on  the financial statements prepared at month's end:  b. overstates net income.  ________________________________________
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6.  Which type of the major activities of a business are best described as those events that occur  less frequently than operating activities and the amounts involved are usually quite large?  
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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 5 - 1.

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