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Unformatted text preview: 1 2 3 It is an expected future benefit 4 5 6 Furthers the objectives of the company 7 8 9 10 11 a. Only I is true Which of the following is an application of the science aspect of accounting? Accountants use their judgment in the choice of the inventory cost flow to be applied to inventory units on hand at the end of the accounting period. Which of the following is not an external event? Goods for sale are stolen from the company warehouse. One of the following is not an attribute of an asset. Which one? Which of the following is an incorrect statement? An accounting information system is designed to collect data about each transaction and event that should be recorded by an entity during a reporting year. Which of the following statements about financial statements is incorrect? They provide information about the financial position, performance and cash flows of an enterprise that is useful to a wide range of users in making economic decisions. The concept of verifiability is complied with when an accounting transaction occurs that Which of the following statements about the accounting cycle is true? A periodic adjusting entry affects both a balance sheet and income statement accounts, or in some rare instances, only income statement accounts. Which of the errors listed below would cause the unadjusted trial balance to be out of balance? Posting only the debit portion of a journal entry The rental payments of a five-year lease contract expiring on December 31, 2013 was paid in full on January 1, 2009. The original payment was debited to a prepaid asset account. The appropriate journal entry has been recorded on December 31, 2009. The balance in the prepaid asset account on December 31, 2009 should be Tha same as it would have been if original payment had been debited initially to an expense account Rockwell Company adopts a calendar year accounting period. Which of the following events involves an adjusting entry that would be affected by how the event was originally recorded? Signing of a one-year promissory note for equipment bought. Which of the following statements about users of financial information is (are) true? 12 13 Use of facts and estimates 14 Internal events are 15 It is primarily historical in nature 16 Trade in of assets 17 I and II only 18 I. The public need information about the trends and recent developments in the prosperity of the enterprise. II. Users of financial information are assumed to have a general understanding of economic activities and the basic accounting terminologies used in financial reporting III. Financial accounting is aimed at addressing the common information needs of all statement users and does not address any specific user information need....
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This note was uploaded on 06/20/2011 for the course ACCT 101 taught by Professor Joannes during the Spring '11 term at Aarhus Universitet.
- Spring '11