PREVIEW: Accounting 100 Quiz 4
1. All changes in account balances are caused by transactions between the business and another business or individual.
X True False P. 125 some changes are not caused by transactions with businesses or individuals
PREVIEW: Accounting 100 Quiz 2
1. The purpose of accounting is to provide financial information about an economic or social entity.
X True False
2. An accounting system is designed to accumulate and classify data about a firm's financial affairs
When a company replaces a component of property, plant and equipment, which statement below
does not account for one of the steps in the process?
a. Any cost to remove the old component is charged to expense
b. The asset cost of the replaced component
All leases are classified as either
a. Capital leases or long-term leases.
b. Operating leases or current leases.
c. Long-term leases or current leases.
d. Capital leases or operating leases.
A fixed asset with a cost of $25,226.00 and accumulated dep
The par value of common stock must always be equal to its market value on the date the stock is
A deficit in Retained Earnings is reported in the stockholders' equity section of the balance
A corporation pu
On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240
brokerage fee. On August 22, Lucas paid a $0.42 dividend per share. On November 10, 4,000 shares of Lucas
stock were sold for $28 per share less a $
The Crafter Company had the following assets and liabilities as of December 31,
Current portion of long-term debt
Which one of the following below would not be classified as an operating activity?
a. Interest Expense
b. Selling Expenses
c. Payment of Dividends
d. Income Taxes
The following selected account balances appeared on the financial statements of
The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and
deferred revenue has never been recorded.
Which of the following is an example of accrued revenue?
a. Swimming p
During 2010, Tempo Inc has monthly cash expenses of $115,000. On December 31, 2010, their cash balance is
$1,437,500. The ratio of cash to monthly cash expenses is:
After a bank reconciliation is completed, adjusting ent
When a stock dividend is declared, which of the following accounts is credited?
a. Common Stock
b. Stock Dividends Distributable
c. Retained Earnings
d. Dividend Payable
The charter of a corporation provides for the issuance of 100,000 shares of common st