ACC561 10 Final Questions A+ Work-9 - 23043

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11) Any event that affects the financial position of an organization and requires recording is called a(n)_____.
A. account
B. transaction
C. posting
D. accounting change

12) _____ would not appear on the financial statements for a sole proprietorship.
A. Cost of Goods Sold
B. Paid-in Capital

C. Accumulated Depreciation

D. Unearned Sales Revenues

13) The accounting convention of _____ guides the relative sophistication of the accounting system.
A. cost benefit
B. objectivity
C. Conservatism
D. materiality

14) Mr. Bryant invested $50,000 cash in a new corporation. The new corporation will record this transaction with a debit to_____.
A. Cash and a credit to Retained Income for $50,000
B. Cash and a credit to Paid-in Capital for $50,000
C. Retained Earnings and a credit to Cash for $50,000
D. Paid-in Capital and a credit to Retained Earnings for $50,000

15) The accounting convention of _____ means selecting the method of measurement that yields the gloomiest immediate results.
A.  objectivity
B. conservatism
C. cost benefit
D. materiality

16) The statement of cash flows is used for all of the following except_____.
A. determining a company's ability to pay its debts when they are due
B. evaluating the creditworthiness of the organization
C. showing the relationship of net income to changes in cash
D. revealing commitments that may restrict future courses of action

17) The Rebecca Company acquired merchandise inventory costing $10,000 on September 1. The company will not pay for the inventory until October 1. This transaction will affect the Rebecca Company by increasing the Merchandise Inventory account by $10,000 and _____.
A. decreasing the Accounts Payable account by $10,000
B. decreasing the Capital account by $10,000
C. increasing the Accounts Payable account by $10,000
D. increasing the Capital account by $10,000
18) Nonoperating items on the income statement_____.
A. reflect the effects of financial management decisions
B. appear on the income statement immediately after gross profit
C. are revenues and expenses arising from adjusting entries
D. appear only on corporate income statements

19) Which value chain function would include depreciation on transportation cost?
A. The customer service function would include depreciation on transportation cost.
B. The marketing function would include depreciation on transportation cost
C. The distribution function would include depreciation on transportation cost.
D. The production function would include depreciation on transportation cost.

20) Which value chain function would include advertising costs?
A. The customer service function would include advertising costs.
B. The production function would include advertising costs.
C. The distribution function would include advertising costs.
D. The marketing function would include advertising costs.

Solution Description

11) Any event that affects the financial position of an organization and requires recording is called a(n)_____.
A. account
B. transaction
C. posting
D. accounting change

12) _____ would not appear on the financial statements for a sole proprietorship.
A. Cost of Goods Sold
B. Paid-in Capital

C. Accumulated Depreciation

D. Unearned Sales Revenues

13) The accounting convention of _____ guides the relative sophistication of the accounting system.