FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Accounting for Accruals

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

[The following information applies to the questions displayed below.] The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: -What is the amount of net income that will be reported on the Year 1 income statement?

A) $2,200
B) $3,200
C) $1,000
D) $200

E) B) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Bledsoe Company acquired $17,000 cash by issuing common stock on January 1,Year 1.During Year 1,Bledsoe earned $8,500 of revenue on account.The company collected $6,000 cash from customers in partial settlement of its accounts receivable and paid $5,400 cash for operating expenses.Based on this information alone,what was the impact on total assets during Year 1?

A) Total assets increased by $20,100.
B) Total assets increased by $600.
C) Total assets increased by $26,100.
D) Total assets did not change.

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

On September 1,Year 1,Gomez Company collected $9,000 in advance from a customer for services to be provided over a one-year period beginning on that date.How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31,Year 1? How much would the company report as net cash flows from operating activities for Year 1?

The following account balances were drawn from the Year 1 financial statements of Grayson Company: What is the balance of the Common Stock account?

Jackson Company paid $500 cash for salary expenses.Which of the following accurately reflects how this event affects the company's horizontal financial statements model?

Indicate whether each of the following statements about corporate governance is true or false.

Accounts payable is reported on the income statement.

Recognizing an expense may be accompanied by which of the following?

The collection of an account receivable is a claims exchange transaction.

Delta Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \text { Asset } & = & \text { Lizb. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } & \begin{array} { c } \text { Strnt d } \\\text { Cash Flows }\end{array} \\\hline - & = & \text { NA } & + & - & \text { NA } & - & + & = & - & - \text { OA } \\\hline\end{array}$ Which of the following accounting events could have caused these effects on the elements of Delta's statements?

Which of the following describes the effects of a claims exchange transaction on a company's financial statements?

[The following information applies to the questions displayed below.] Nelson Company experienced the following transactions during Year 1, its first year in operation. 1) Acquired $12,000 cash by issuing common stock 2) Provided $4,600 of services on account 3) Paid $3,200 cash for operating expenses 4) Collected $3,800 of cash from customers in partial settlement of its accounts receivable 5) Paid a $200 cash dividend to stockholders -What is the amount of total assets that will be reported on the balance sheet as of December 31,Year 1?

Which of the following is an asset source transaction?

Which of the following is not a principle of the AICPA Code of Professional Conduct?

Mize Company provided $45,500 of services on account,and collected $38,000 from customers during the year.The company also incurred $37,000 of expenses on account,and paid $32,400 against its payables.How do these events impact the elements of the horizontal financial statements model?

An increase in an expense may be accompanied by a decrease in a liability.

A company may recognize a revenue or expense without a corresponding cash collection or payment in the same accounting period.

If a company provides services to clients but has not yet collected any cash,how should that transaction be classified?

The Sarbanes-Oxley Act includes several significant reforms that affect the auditing profession,but it did not reduce an audit firm's ability to provide nonaudit services to its audit clients.

Which of the following is not one of the common elements that are typically present when fraud occurs?