Chap 12 - 1 Accounting information is useful for several kinds of decisions For which decision situation would accounting information NOT be useful

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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 company has $15,000 in assets and $10,000 in equities, then liabilities are: c. $5,000. ________________________________________ 3. Bosso Company repaid a note payable of $20,000 and the interest due of $400. The journal entry to record this transaction would include a: c. debit to interest expense. ________________________________________ 4. Expense items that have been incurred during a period but not recorded by the end of the period are: d. unrecorded liabilities. ________________________________________ 5. Which of the following errors would be detected by preparing a trial balance? c. Recording the debit part of a transaction, but not the credit part. ________________________________________ 6.
Background image of page 1

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

View Full DocumentRight Arrow Icon
When the direct write-off method of recognizing bad debt expense is used, the entry at the time of collection of a small account previously written off would: a. increase net income. ________________________________________ 7.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 6

Chap 12 - 1 Accounting information is useful for several kinds of decisions For which decision situation would accounting information NOT be useful

This preview shows document pages 1 - 3. Sign up to view the full document.

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