Acct Exam 2 with solutions with correct answers 100% 2024
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Course
Principles of Strategy Risk & Financial Man
Institution
Principles Of Strategy Risk & Financial Man
Acct Exam 2 with solutions with correct answers 100% 2024
the revenue recognition principle dictates that revenue should be recognized in the accounting records - Correct Answer when it is earned
a flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on De...
Acct Exam 2 with solutions with correct
answers 100% 2024
the revenue recognition principle dictates that revenue should be recognized in the accounting records -
Correct Answer when it is earned
a flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on Dec 5
and a check is received on Dec 10. The flower shop follows GAAP and applies the revenue recognition
principle. When is the $1,000 considered to be earned? - Correct Answer November 30
under the cash basis of accounting:
a. revenue is recognized when services are performed
b. expenses are matched with the revenue that is produced
c. cash must be received beforerevenue is recognized
d. a promise to pay is sufficient to recognize revenue - Correct Answer c. cash must be received before
revenue is recognized
The following is selected information from L Corporation for the fiscal year ending Oct. 31 2011.
*Cash received from customers--$300,000
*revenue earned--370,000
*cash paid for expenses--170,000
*cash paid for computers Nov 1 that will be used for 3 years--48,000
*expenses incurred including any depreciation--216,000
*proceeds from a bank loan, part of which was used to pay for the computers--100,000
Based on the accrual basis of accounting, what is L Corp's net income for the year ending Oct 31, 2011? -
Correct Answer $154,000 (370,000-216,000)
La More Company had the following transactions during 2011:
*sales of $4,500 on account
*collected $2,000 for services to be performed in 2012
, *paid $1,125 cash in salaries
*purchased airline tickets for $250 in Dec for a trip in 2012
What is their 2011 net income using cash basis accounting? - Correct Answer $625 (2000-1125-250)
given the data below for a firm in its first year of operation, determine net income under the cash basis
of accounting:
*revenue earned $14,000
*accounts receivable 3,000
*expenses incurred 7,250
*accounts payable (related to expenses 750
*supplies purchased with cash 1,800 - Correct Answer $2,700 (11,000-6,500-1,800)
an adjusting entry:
a. affects two balance sheet accounts
b. affects two income statement accounts
c. affects a balance sheet account and an income statement account
d. is always a compound entry - Correct Answer c. affects a balance sheet account and an income
statement account
accrued expenses are: - Correct Answer incurred but not yet paid or recorded
Greese Company purchased office supplies costing $4,000 and debited Office Supplie for the full
amount. At the end of the accounting period, a physical count of office supplies revealed $1,100 still on
hand. The appropriate adjusting journal entry to be made at the end of the period would be: - Correct
Answer debit Office Supplies Expense $2,900; credit Office Supplies $2,900
Walton Copmpany collected $7,200 in May of 2010 for 4 months of service which would take place from
Oct 2010 through Jan 2011. The revenue reported from this transaction during 2010 would be: - Correct
Answer $5,400 (7200/4-1800; 1800*3=5400)
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