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C the income statement demonstrates the effect of net

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C.The income statement demonstrates the effect of net income on thebalance sheet.D.Net income is listed before net operating income on the incomestatement.Accessibility: Keyboard NavigationBloom's: ComprehensionDifficulty: MediumLearning Objective: 03-01 Describe Common Operating Transactions and Select Appropriate Income Statement Account Titles.Phillips - Chapter 03 #59Topic: 03-01 Operating Activities
60.Which of the following is an example of an error that would not cause the trialbalance to be out of balance?A.A journal entry was posted as a debit to Cash for $525 and credited to AccountsReceivable for $552.B.A journal entry was posted as a debit to Cash and a credit to Sales Revenuewhen the company received a customer payment on account.C.A journal entry was posted as a debit to Wages Expense and a debit toWages Payable.D.All of the choices errors would cause the trial balance to be outof balance.Accessibility: Keyboard NavigationBloom's: ComprehensionDifficulty: HardLearning Objective: 03-04 Prepare an Unadjusted Trial Balance.Phillips - Chapter 03 #60Topic: 03-12 Unadjusted Trial Balance61.A company's revenue recognition policy:A.affects the income statement but not thebalance sheet.B.defines when its revenue should becollected.C.is usually described in the notes to a company's financialstatements.D.states that revenues should not be recorded until payments are received fromcustomers.Accessibility: Keyboard NavigationBloom's: KnowledgeDifficulty: EasyLearning Objective: 03-02 Explain and Apply the Revenue and Expense Recognition Principles.Phillips - Chapter 03 #61Topic: 03-08 Revenue Recognition Principle
62.In September, a customer signed a contract to have his house painted and paid forthe job in October. The painting company bought the paint in August on accountand paid for it in September. The painting company painted the house inNovember. According to the revenue and matching principles, the paintingcompany should record:A.the revenues in November and the expenses inSeptember.B.the revenues and the expenses inSeptember.C.the revenues and the expenses inNovember.D.the revenues in September and the expenses inAugust.Accessibility: Keyboard NavigationBloom's: ComprehensionDifficulty: MediumLearning Objective: 03-02 Explain and Apply the Revenue and Expense Recognition Principles.Phillips - Chapter 03 #62Topic: 03-07 Accrual Basis Accounting63.The Rainbow House Painting Company has been contracted to strip, repair, prime,and paint a house for $3,600 to be paid in instalments as phases of the work arecompleted. The company has not started painting and has only received onepayment. The company decides to record $3,600 as revenue. This decisionviolates the:A.fourth condition of the revenue principle which states that regulatory approvalbe acquired.

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Term
Fall
Professor
Bozyk
Tags
Accounting, Finance, Balance Sheet, Dividends, Generally Accepted Accounting Principles

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