MCQS 31 In the general ledger, a separate "account" is maintained for each:Type of asset and liability and for each element of owners' equity. Business transaction. Business day. Journal entry.
MCQS 31
In the general ledger, a separate "account" is maintained for each:Type of asset and liability and for each element of owners' equity.
Business transaction.
Business day.
Journal entry.
MCQS 32
The cost of a new windshield wiper on a delivery vehicle would be classified as:
A. A capital expenditure.
B. A revenue expenditure.
C. Part of the cost of goods sold.
D. An unusual and infrequent expense
MCQS 33
The cash effects of transactions that create revenues and expenses are
financing activities.
investing activities.
operating activities.
processing activities.
MCQS 34
Harvard Company purchased equipment having an invoice price of $11,500. The terms of sale were 2/10, n/30, and Harvard paid within the discount period. In addition, Harvard paid a $160 delivery charge, $185 installation charge, and $931 sales tax. The amount recorded as the cost of this equipment is:
A. $11,845.
B. $12,776.
C. $11,615.
D. $12,546.
MCQS 35
Immaterial items may be accounted for in the most convenient manner, without regard to other theoretical concepts.
True
False
MCQS 36
True
False
MCQS 37
Decreases in owners' equity are caused by:
Purchases of assets and payment of liabilities.
Purchases of assets and incurrence of liabilities.
Payment of liabilities and unprofitable operations.
Distributions of assets to the owners and unprofitable operations.
MCQS 38
The cost of insurance is considered an expense:
Only when the entire policy period has passed.
Only when the policy is purchased.
Only when the premium is paid.
Evenly over the term of the policy.
MCQS 39
To understand and use accounting information in making economic decisions, you must understand?
(a) The nature of economic activities that accounting information describes
(b) The assumptions and measurement techniques involved in developing accounting information
(c) Which information is relevant for a particular type of decision that is being made?
(d) All of Above
MCQS 40
Which of the following would not be regarded as an asset?
(a) A piece of equipment owned by a business
(b) A sum of money owed to the business
(c) An inventory of goods that have yet to be sold
(d) Leasehold premises
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