Question 1

An example of an explicit transaction is ________.

Accepted Answer

A)  recording depreciation expense
B)  paying cash for three months' rent in advance
C)  accruing wages expense at the end of the month
D)  accruing interest expense at the end of the yearE) C) and D)
F) A) and D)

Question 2

The adjusting entry for ________ increases expenses and decreases assets.

Accepted Answer

A)  wages expense
B)  depreciation expense
C)  unearned revenue
D)  accruing interest expenseE) C) and D)
F) B) and D)

Question 3

VanHalen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry at the end of the month will ________.

Accepted Answer

A)  increase expenses and decrease cash
B)  increase assets and increase expenses
C)  increase liabilities and increase expenses
D)  decrease liabilities and decrease cashE) A) and D)
F) B) and C)

Question 4

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

Accepted Answer

A)  conservatism
B)  relevance
C)  going concern
D)  materialityE) A) and B)
F) All of the above

Question 5

Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?

Accepted Answer

A)  no effect
B)  liabilities will increase $400
C)  owners' equity will increase $400
D)  owners' equity will increase $1,000E) C) and D)
F) None of the above

Question 6

XYZ Company reports the following information on December 31,2011:  What are total assets at December 31,2011?

Accepted Answer

A)  $172,000
B)  $202,000
C)  $206,000
D)  $218,000E) None of the above
F) A) and D)

Question 7

Amounts due from customers are called accounts payable.

Accepted Answer

A) True 
 B)False

Question 8

The matching convention attempts to match revenues and assets to a particular period.

Accepted Answer

A) True 
 B)False

Question 9

The Smuckers Company reports the following accounts and balances on December 31,2015.
  Required:
Prepare a balance sheet at December 31,2015.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Assets: <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> ...

Question 10

Revenue and expense accounts are permanent stockholders' equity accounts.

Accepted Answer

A) True 
 B)False

Question 11

Under accrual basis accounting,unexpired costs are considered to be ________.

Accepted Answer

A)  expenses if cash has been paid
B)  expenses if cash has not been paid
C)  assets
D)  accrued liabilitiesE) A) and C)
F) All of the above

Question 12

Rent paid in advance would be considered to be a prepaid asset by the renter.

Accepted Answer

A) True 
 B)False

Question 13

Cash collections of Accounts Receivable will increase ________ and decrease ________.

Accepted Answer

A)  Accounts Receivable; Accounts Payable
B)  Accounts Payable; Accounts Receivable
C)  Cash; Accounts Payable
D)  Cash; Accounts ReceivableE) B) and D)
F) All of the above

Question 14

The ownership claim arising from the reinvestment of previous profits is called ________.

Accepted Answer

A)  net assets
B)  stockholders' equity
C)  investment income
D)  retained earningsE) A) and B)
F) A) and C)

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

The matching convention attempts to match revenues and assets to a particular period.

Correct Answer
verified

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

Correct Answer
verified

The ownership claim arising from the reinvestment of previous profits is called ________.

Correct Answer
verified

Under accrual basis accounting,unexpired costs are considered to be ________.

Correct Answer
verified

Cash collections of Accounts Receivable will increase and decrease .

Correct Answer
verified

An example of an explicit transaction is ________.

Correct Answer
verified

XYZ Company reports the following information on December 31,2011: What are total assets at December 31,2011?

Correct Answer
verified

The Smuckers Company reports the following accounts and balances on December 31,2015. Required: Prepare a balance sheet at December 31,2015.

Correct Answer
verified
Assets: ...
View Answer

Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?

Correct Answer
verified

Amounts due from customers are called accounts payable.

Correct Answer
verified

VanHalen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry at the end of the month will ________.

Correct Answer
verified

Revenue and expense accounts are permanent stockholders' equity accounts.

Correct Answer
verified

Rent paid in advance would be considered to be a prepaid asset by the renter.

Correct Answer
verified

The adjusting entry for ________ increases expenses and decreases assets.

Correct Answer
verified

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

The matching convention attempts to match revenues and assets to a particular period.

Correct AnswerverifiedShow Answer

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

Correct AnswerverifiedShow Answer

The ownership claim arising from the reinvestment of previous profits is called ________.

Correct AnswerverifiedShow Answer

Under accrual basis accounting,unexpired costs are considered to be ________.

Correct AnswerverifiedShow Answer

Cash collections of Accounts Receivable will increase ________ and decrease ________.

Correct AnswerverifiedShow Answer

An example of an explicit transaction is ________.

Correct AnswerverifiedShow Answer

XYZ Company reports the following information on December 31,2011: What are total assets at December 31,2011?

Correct AnswerverifiedShow Answer

The Smuckers Company reports the following accounts and balances on December 31,2015. Required: Prepare a balance sheet at December 31,2015.

Correct Answerverified Assets: ...View AnswerShow Answer

Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?

Correct AnswerverifiedShow Answer

Amounts due from customers are called accounts payable.

Correct AnswerverifiedShow Answer

VanHalen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry at the end of the month will ________.

Correct AnswerverifiedShow Answer

Revenue and expense accounts are permanent stockholders' equity accounts.

Correct AnswerverifiedShow Answer

Rent paid in advance would be considered to be a prepaid asset by the renter.

Correct AnswerverifiedShow Answer

The adjusting entry for ________ increases expenses and decreases assets.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Cash collections of Accounts Receivable will increase and decrease .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Assets: ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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