Impresion Individual, datos de alumnos desde el profesor

20/09/15 23:06

Note: the marked answers on grey are your own answers.

Test: (13/25) - started on 20/9/2015 22:40, finished on 20/9/2015 23:6

1.- Assume revenues exceed expenses in a given period. What is the impact on retained earnings?
Retained earnings increases.
Retained earnings decreases.
Retained earnings is not impacted.
We need additional information to determine the impact on retained earnings.
2.- An accounting firm receives 1,000 from a new audit client right after the first meeting. Which of the
following is the journal entry to be recorded?
Debit to Audit Fees Revenues 1,000, Credit to Cash 1,000
Debit to Cash 1,000, Credit to Audit Fees Revenues 1,000
Debit to Cash 1,000, Credit to Unearned Revenues 1,000
Debit to Accounts Receivable 1,000, Credit to Unearned Revenues 1,000
3.- Which of the following accounts is not included on the income statement?
Rent Expense
Net Sales
Gain on sale of Property, Plant and Equipment
Accumulated depreciation
4.- A company buys land for 100,000. It pays half in cash. The other half is financed with a note payable. This
transaction has the following impact on the accounting equation:
Total assets increase 100,000 and total liabilities increase 100,000.
Total assets increase 100,000 and total liabilities increase 50,000.
Total assets increase 50,000 and total liabilities increase 50,000.
Total assets increase 50,000 and owners equity increases 50,000.
5.- Assume a company has incurred interest expense but has not yet paid the interest. Which of the following
is the journal entry to be recorded?
Debit to Interest Expense, Credit to Cash
Debit to Interest Payable, Credit to Interest Expense
Debit to Interest Expense, Credit to Interest Payable
Debit to Interest Expense, Credit to Retained Earnings

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6.- Which of the following does not describe the impact of the adjusting journal entry required to recognize the
rent expense and reduce the rent paid in advance?
Expenses increase and Retained Earnings decreases
Expenses increase and Assets decrease
Expenses increase and Stockholders Equity increases
Expenses increase and Stockholders Equity decreases
7.- Your company receives a cash deposit from a customer on January 15. The goods will be delivered to the
client on February 15. Which of the following statements is false?
Cash will be reported on the statement of cash flows for the month of January.
Revenue will be recorded and reported on the income statement for February.
A liability will be reported on the balance sheet at the end of January.
A prepaid asset will be reported on the balance sheet at the end of January.
8.- If we debit "Depreciation expense" and credit "Accumulated depreciation",
Total assets is not affected
Net income is not affected
Liabilities will increase
Total assets will decrease
9.- Which of the following accounts does not normally have a credit balance?
Contributed Capital
Accounts payable
Accounts Receivable
Retained Earnings
10.- The issuance of new shares in exchange for property would appear on the statement of cash flows as a(n)
Operating activity
Investing activity
Financing activity
None of them
11.- Which of the following statements is false:
Relevant information has the ability to influence a users economic decision.
The matching principle states that all expenses incurred in the generation of revenue should be
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20/09/15 23:06

recognized in the same period as the revenue is earned.

Reliable information is accurate, verifiable, and unbiased.
Accumulated depreciation appears on the income statement.
12.- Indicate which of the following statements is correct:
Retained earnings include contributed capital.
Assets on the balance sheet include retained earnings.
A firms net income does not necessarily equal its cash flow from operations.
The balance sheet equation states that assets equal contributed capital.

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