chap 14 - 1 ' expenses c Incomestatement 2 the b...

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1.  Which primary financial statement shows a business enterprise's excess of revenues over  expenses? c. Income statement  _______________________________________ 2.  The idea that a business is considered to be separate from its individual owners is known as  the: b. entity concept.  ________________________________________ 3.  A company's retained earnings balance is increased by: a. net income.  _______________________________________ 4.  The process of dividing a company's operations into separate and distinct time periods so that  reports can be prepared on a timely basis is the:  d. time period concept.  _______________________________________ 5.  Recording $500 of advertising expense as prepaid rent will result in:  c. an overstatement of assets and an understatement of expenses.  ________________________________________ 6. 
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When the allowance method is used to account for uncollectible accounts, the net amount of  accounts receivable:  c. stays the same when an account is written off as uncollectible.  ________________________________________ 7.  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:
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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 14 - 1 ' expenses c Incomestatement 2 the b...

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