6. Journal -> Ledger T F 7. T-account have three part including credit side, debit side and amount value
7. Amount value -> Title account T F 8. Under FIFO inventory cost flow assumption is the cost of the most recent purchase matched first with sales revenues
8. FIFO -> LIFO T F 9. Income is the excess of a company’s revenues over expenses for a given point of time.
9. Income -> Net income T F 10. An accounting year that covers a period of time other than January 1 through December 31 is typically referred to as a calendar year.
Multiple Choices | 3 points/ each
1. In what condition order of current assets do you listed the balance sheet?
A. Liquidity B. Leverage
C. Time to use
2. Which of the following statements is INCORRECT A. Accrued revenues have been earned but not yet received.
B. Accrued expense are goods and services purchased for future consumption and paid for in advance
C. Unearned revenue represents future revenue that has been collected but not yet earned
D. An adjusting journal entry to record an accrued expense would necessarily involve a debit to an expense account.
3. On December 1 202x, ABC Co. hired Juanita Perez to begin working on January 10 202x at a monthly salary of $4,000. ABC's balance sheet of December 31 202x will show a liability of what amount?
D. No Liability
4. In recording an accounting transaction in a double-entry system
A. the number of debit accounts must equal the number of credit accounts.
B. there must always be entries made on both sides of the accounting equation.
C. the amount of the debits must equal the amount of the credits. D. there must only be two accounts affected by any transaction.
5. For purposes of measuring business income, the life of a business is
A. divided into specific points in time.
B. divided into irregular cycles.