These questions are probably gonna be on my upcoming test and
they're kicking my but, I keep getting them wrong.
The days’ sales uncollected ratio is calculated by which of the following equations?
1. Accounts receivable / (credit sales X 365).
2. Accounts receivable / (credit sales / 365).
3. Accounts payable / (credit purchases X 365).
4. Accounts payable / (credit purchases / 365).
Save Answer
13. U05q1 Question 13 (Points: 5)
When an asset is used up or consumed in the operations of the business, the resulting transaction includes incurring an expense.
a. True.
b. False.
Save Answer
14. U05q1 Question 14 (Points: 5)
Over the life of a business, most expenditures will become expenses, but in a single accounting period, expenses are not the same as expenditures.
a. True.
b. False.
Save Answer
15. U05q1 Question 15 (Points: 4)
This accounting concepts states that accounting reports only facts that can be expressed in monetary amounts:
a. Entity concept.
b. Materiality concept.
c. Money-measurement concept.
d. Asset-measurement concept.
Save Answer
16. U05q1 Question 16 (Points: 4)
A business’s cost of sales can be calculated by which of the following formulas?
a. $Purchases + $ending inventory – $beginning inventory.
b. $Purchases + $beginning inventory - $ending inventory.
c. $Revenues - $purchases.
d. $Net income + $purchases - $expenses.
Save Answer
17. U05q1 Question 17 (Points: 4)
Which ending inventory valuation method assumes that the most recently purchased items are the first to be sold?
a. LIFO.
b. Average cost.
c. FIFO.
d. Specific identification.
Save Answer
18. U05q1 - Question 18 (Points: 4)
When an asset is acquired, it should be recorded at its current market value, rather than its purchase cost.
a. True.
b. False.
Save Answer
19. U05q1 - Question 19 (Points: 4)
With this depreciation method, annual depreciation decreases the amount of taxable income more in the earlier years of an asset’s service life.
a. Straight-line method.
b. Units-of-production method.
c. Accelerated method.
d. Lower of cost or market method.
Save Answer
20. U05q1 - Question 20 (Points: 4)
Depletion is associated with which of the following assets?
a. Plant and equipment.
b. Prepaid assets.
c. Accounts receivable.
d. Natural assets that waste away.
Save Answer
21. u05q1 - Question 21 (Points: 4)
The set of rules, conventions, standards, and procedures established for reporting financial information are known as:
1. Financial accounting standards.
2. Generally accepted financial principles.
3. Generally accepted accounting principles.
4. Accounting standards and procedures.
Save Answer
22. u05q1 - Question 22 (Points: 4)
Under the accrual basis for recording financial events, a transaction is recorded only when the cash has been received or paid.
1. True.
2. False.
they're kicking my but, I keep getting them wrong.
The days’ sales uncollected ratio is calculated by which of the following equations?
1. Accounts receivable / (credit sales X 365).
2. Accounts receivable / (credit sales / 365).
3. Accounts payable / (credit purchases X 365).
4. Accounts payable / (credit purchases / 365).
Save Answer
13. U05q1 Question 13 (Points: 5)
When an asset is used up or consumed in the operations of the business, the resulting transaction includes incurring an expense.
a. True.
b. False.
Save Answer
14. U05q1 Question 14 (Points: 5)
Over the life of a business, most expenditures will become expenses, but in a single accounting period, expenses are not the same as expenditures.
a. True.
b. False.
Save Answer
15. U05q1 Question 15 (Points: 4)
This accounting concepts states that accounting reports only facts that can be expressed in monetary amounts:
a. Entity concept.
b. Materiality concept.
c. Money-measurement concept.
d. Asset-measurement concept.
Save Answer
16. U05q1 Question 16 (Points: 4)
A business’s cost of sales can be calculated by which of the following formulas?
a. $Purchases + $ending inventory – $beginning inventory.
b. $Purchases + $beginning inventory - $ending inventory.
c. $Revenues - $purchases.
d. $Net income + $purchases - $expenses.
Save Answer
17. U05q1 Question 17 (Points: 4)
Which ending inventory valuation method assumes that the most recently purchased items are the first to be sold?
a. LIFO.
b. Average cost.
c. FIFO.
d. Specific identification.
Save Answer
18. U05q1 - Question 18 (Points: 4)
When an asset is acquired, it should be recorded at its current market value, rather than its purchase cost.
a. True.
b. False.
Save Answer
19. U05q1 - Question 19 (Points: 4)
With this depreciation method, annual depreciation decreases the amount of taxable income more in the earlier years of an asset’s service life.
a. Straight-line method.
b. Units-of-production method.
c. Accelerated method.
d. Lower of cost or market method.
Save Answer
20. U05q1 - Question 20 (Points: 4)
Depletion is associated with which of the following assets?
a. Plant and equipment.
b. Prepaid assets.
c. Accounts receivable.
d. Natural assets that waste away.
Save Answer
21. u05q1 - Question 21 (Points: 4)
The set of rules, conventions, standards, and procedures established for reporting financial information are known as:
1. Financial accounting standards.
2. Generally accepted financial principles.
3. Generally accepted accounting principles.
4. Accounting standards and procedures.
Save Answer
22. u05q1 - Question 22 (Points: 4)
Under the accrual basis for recording financial events, a transaction is recorded only when the cash has been received or paid.
1. True.
2. False.