QUIZ - Question 1 2 points If during an accounting period...

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Question 1 2 points Save If, during an accounting period, an expense item has been incurred and consumed but not yet paid for or recorded, then the end-of- period adjusting entry would involve a. a liability account and an asset account. b. an asset or contra asset account and an expense account. c. a liability account and an expense account. d. a receivable account and a revenue account. Question 2 2 points Save Which of the following statements about materiality is not correct? a. An item must make a difference or it need not be disclosed. b. Materiality is a matter of relative size or importance. c. An item is material if its inclusion or omission would influence or change the judgment of a reasonable person. d. All of these are correct statements about materiality. Question 3 2 points Save Under Statement of Financial Accounting Concepts No. 5, which of the following, in the most precise sense, means the process of converting noncash resources and rights into cash or claims to cash? a. Recognition b. Measurement c. Realization d. Allocation Question 4 2 points Save Generally, revenue from sales should be recognized at a point when
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a. management decides it is appropriate to do so. b. the product is available for sale to the ultimate consumer. c. the entire amount receivable has been collected from the customer and there remains no further warranty liability. d. none of these. Question 5 2 points Save Maso Company recorded journal entries for the issuance of common stock for $40,000, the payment of $13,000 on accounts payable, and the payment of salaries expense of $21,000. What net effect do these entries have on owners’ equity? a. Increase of $40,000. b. Increase of $27,000. c. Increase of $19,000. d. Increase of $6,000. Question 6 2 points Save Application of the full disclosure principle a. is theoretically desirable but not practical because the costs of complete disclosure exceed the benefits. b. is violated when important financial information is buried in the notes to the financial statements. c. is demonstrated by the use of
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QUIZ - Question 1 2 points If during an accounting period...

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