chap 9 - 1 Accounting information is useful for several...

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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. If a corporation has assets of $250,000, liabilities of $70,000, and capital stock of $120,000, what is the amount of retained earnings? a. $30,000 ________________________________________ 3. When transactions are posted from the book of original entry, they are posted to the: b. general ledger. _______________________________________ 4. Expense items that have been incurred during a period but not recorded by the end of the period are: d. unrecorded liabilities. ______________________________________ 5. A company paid its rent for two years in advance on September 1, debiting Prepaid Rent for the full amount. If no adjusting entry is made at the end of the year, how does this affect the year-end financial statements? d. Overstates net income
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________________________________________ 6. When the allowance method of recognizing bad debt expense is used, the entry to write off a specific customer account would: b. have no effect on net income. ________________________________________ 7.
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chap 9 - 1 Accounting information is useful for several...

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