ACC 201 Week 2 quiz 2

ACC 201 Week 2 quiz 2

• Question 1

0 out of 4 points

All of the following are interrelationships that are important to understand when preparing financial statements except:

• Question 2

4 out of 4 points

The CPA firm auditing Greer Company found that net income had been overstated. Which of the following errors could be the cause?

• Question 3

4 out of 4 points

Elite Property management adjusts it's books and prepares financial statements each month.  The unadjusted trial balance as of February 28 (before accrual basis entries) is as follows:

Employees are owed $350 for services since the last payday in February, to be paid the first week in March. The amount to be reported in the February income statement for salaries expense is:

Response Feedback:

$6,400 plus $350 accrued salaries = $6,750 Salaries Expense

• Question 4

4 out of 4 points

Elite Property management adjusts it's books and prepares financial statements each month.  The unadjusted trial balance as of February 28 (before accrual basis entries) is as follows:

The equipment had an estimated useful life of six years. Compute the book value of the equipment at February 28, after the proper February adjustment is recorded.

• Question 5

4 out of 4 points

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

• Question 6

3 out of 3 points

Adjusting entries are needed:

• Question 7

• Question 8

4 out of 4 points

• Question 9

4 out of 4 points

• Question 10

4 out of 4 points

• Question 11

4 out of 4 points

• Question 12

4 out of 4 points

• Question 13

4 out of 4 points

• Question 14

3 out of 3 points

• Question 15

4 out of 4 points

Which of the following statements is not true regarding prepaid expenses?

• Question 16

4 out of 4 points

The accountant for the Linville Company forgot to make an adjusting entry to record revenue earned but not yet billed to customers. The effect of this error is:

• Question 17

4 out of 4 points

The statement of cash flows includes cash flows from

• Question 18

4 out of 4 points

• Question 19

4 out of 4 points

Payments to stockholders are called

• Question 20

4 out of 4 points

Which of the following entries causes an immediate decrease in assets and in stockholders' equity?

• Question 21

2 out of 2 points

Which of the following is not a purpose of adjusting entries?

• Question 22

4 out of 4 points

Which of the following is not an application of the accrual basis of accounting?

• Question 23

4 out of 4 points

Genreally, adjusting entries do NOT consist of:

• Question 24

0 out of 4 points

Failure to record depreciation at year end will result in an

• Question 25

4 out of 4 points

An adjusting entry involving recognition of unrecorded revenue is necessary at the end of March in which of the following situations?

• Question 26

4 out of 4 points

In a classified balance sheet, assets are could be classified as: