chap 8 - 1. The functions of an accounting system include...

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1. The functions of an accounting system include all of the following except to: a. gather marketing data. ________________________________________ 2. When preparing a statement of cash flows, activities associated with buying and selling assets are: b. investing activities. ________________________________________ 3. When owners invest money in their business, the effect on the accounting equation is that the investment: d. increases assets and increases owners' equity. ________________________________________ 4. The idea that the expenses incurred to generate revenue for a given period should be matched against that revenue is called the: d. matching principle. ________________________________________ 5. Which one of the following errors causes net income to be understated? c. Failure to accrue revenue earned but not billed. ________________________________________ 6.
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The entry required to record a sales return by a customer could consist of: b. a debit to Sales Returns and Allowances and a credit to Accounts Receivable. ________________________________________ 7. Assuming that a company has properly estimated and recorded warranty service expenses, the entry to record actual costs incurred to perform service under warranty would include
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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 8 - 1. The functions of an accounting system include...

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