Bus 591_quiz week 2 1. when a company receives a utility bill but

BUS 591_Quiz week 2
1. When a company receives a utility bill but will not pay it right away, it should (Points : 1)
       debit Utilities Expense and credit Accounts Receivable.
       debit Utilities Expense and credit Accounts Payable.
       debit Accounts Payable and credit Utilities Expense.
       make no entry until the bill is paid.

2. Is the purchase of equipment treated as an expense at the time of purchase? Why or why not? (Points : 1)
        No, GAAP requires that 10% of the cost be expensed each year. This minimizes attempts to mislead financial statement users.
        Yes, the matching principle requires that the cost be expensed in the period of purchase.
        No, the cost needs to be allocated to the years of expected use.
        Yes, the actual life of the asset is not known, thus there is no acceptable way to allocate the cost.

3. Unearned revenue is classified as a(n): (Points : 1)
       asset account.
       revenue account.
       contra revenue account.

4. Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting.
     Cash received from customers    $44,000
     Accounts receivable    12,000
     Cash paid for expenses    26,000
     Accounts payable (related to expenses)    3,000
     Prepaid rent for next period    7,000
(Points : 1)

5. The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand.  The adjusting entry that should be made by the company on June 30 is: (Points : 1)
       debit Laundry Supplies Expense, $2,000; credit Laundry Supplies, $2,000.
       debit Laundry Supplies, $4,500; credit Laundry Supplies Expense, $4,500.
       debit Laundry Supplies, $2,000; credit Laundry Supplies Expense, $2,000.
       debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500.

6. In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a (Points : 1)
        $800 credit balance.
        $400 debit balance.
        $1,200 debit balance.
        $400 credit balance.

7. Which of the following accounts has a normal credit balance? (Points : 1)
        Prepaid Rent
        Notes Receivable
        Rent Revenue
        Rent Expense

8. The following is selected information from C Corporation for the fiscal year ending October 31, 2011.
Cash received from customers    $150,000
Revenue earned     195,000
Cash paid for expenses    85,000
Cash paid for computers on November 1, 2010 that
                 will be used for 3 years     
Expenses incurred  including any depreciation    109,000
Proceeds from a bank loan, part of which was used to
                  pay for the computers     

Based on the accrual basis of accounting, what is C Corporation’s net income for the year ending October 31, 2011? (Points : 1)

9. Expenses are recognized when: (Points : 1)
       they contribute to the production of revenue.
       they are paid.
       they are billed by the supplier.
       the invoice is received.

10. Assets normally show (Points : 1)
       credit balances.
       debit balances.
       debit and credit balances.
       debit or credit balances.





Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10