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Making insurance payments in advance is an example of: (Points : 1) An accrued revenue transaction. An accrued expense transaction. A deferred...

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1. Making insurance payments in advance is an example of: (Points : 1) An accrued revenue transaction. An accrued expense transaction. A deferred revenue transaction. A deferred expense transaction. Question 2. 2. In its 2004 annual report, Apple Computer reported the following in one of its disclosure notes: "Warranty Expense: The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized." This note exemplifies Apple's use of: (Points : 1) Conservatism The matching principle Realization principle Full disclosure principle Question 3. 3. The purpose of closing entries is to transfer: (Points : 1) Accounts receivable to retained earnings when an account is fully paid. Balances in temporary accounts to a permanent account. Inventory to cost of goods sold when merchandise is sold. Assets and liabilities when operations are discontinued. Question 4. 4. The best argument in support of historical cost information is: (Points : 1) Relevance. Predictive quality for future cash flows. Materiality. Verifiability. Question 5. 5. Rent collected in advance is: (Points : 1) An asset account in the balance sheet. A liability account in the balance sheet. A shareholders' equity account in the balance sheet. A temporary account, not in the balance sheet at all. Question 6. 6. Which of the following accounts are closed at the end of the accounting period? (Points : 1) Allowance for uncollectibles Unearned revenue Retained earnings Provision for income taxes Question 7. 7. The principal concern with accounting for related party transactions is: (Points : 1) The size of the transactions. Differences between economic substance and legal form. The absence of legally binding contracts. The lack of accurate data to record transactions.
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Question 8. 8. The adjusting entry required to record accrued expenses includes: (Points : 1) A credit to cash. A debit to an asset. A credit to an asset. A credit to liability. Question 9. 9. When converting an income statement from a cash basis to an accrual basis, cash received for services: (Points : 1) Exceed service revenue. May exceed or be less than service revenue. Is less than service revenue. Equals service revenue. Question 10. 10. Accrued expenses: (Points : 1) Are generally paid in services rather than cash. Result from payment before services are received. Result from services received before payment. Are deferred charges to expense. Time Remaining:
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Quiz 1 Soln.docx

1. Making insurance payments in advance is an example of: (Points : 1)
An accrued revenue transaction.
An accrued expense transaction.
A deferred revenue transaction.
A deferred expense...

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