Finance Questions

Financial accounting standards are known collectively as GAAP. What does that acronym stand for?A) Generally Authorized Auditing PrinciplesB) Generally Applied Accounting ProceduresC) Governmentally Approved Accounting PracticesD) Generally Accepted Accounting Principles

Which of the following best describes the purpose of an audit?A) To audit every transaction that an entity entered into.B) To establish that a corporation's stock is a sound investment.C) To prove the accuracy of an entity's financial statements.D) To lend credibility to an entity's financial statements.

For accounting information to be useful, it must be which of the following?A) It must be comparable and reliable.B) It must be consistent and comparable.C) It must be a faithful representation and relevant.D) It must be relevant and consistent.

if prices are steady what gives highest end inventroy

what would happen to accounts receivable if you did not account for bad debts

sales discounts should have debit or credit (Normal Balance)?

if company offers discount for early payment and buyer plans to take it AR will be (overstaided or understated or correctly stated)?

Understate Beginning Inventory (effect on COGS and Net Income)

a comapny forgot to write off what is true assets or income?

in periods of rising cost what gives the highest COGS (FIFO, LIFO, Average)

Which of the following statements related to the adjusted trial balance is incorrect? - companies can prepare financial statements directly from the adjusted trial balance- it proves the equality of the total debit balances and the total credit balances in the ledger - it shows the balances of all accounts at the end of the accounting period - it is prepared before adjusting entries have been made

On December 31, before any year-end adjustments, Hunt Company's Insurance Expense account had a balance of $925 and its Prepaid Insurance account had a balance of $1,900 of which $1,500 had expired by year-end. The adjusted balance for Insurance Expense for the year would be-$1,500-$975-$925-$2,425

The trial balance shows Supplies $0 and Supplies Expense $1,500. If $800 of supplies are on hand at the end of the period, the adjusting entry is - debit supplies $800 and credit Supplies Expense $800- debit Supplies Expense $800 and credit Supplies $800- debit Supplies $700 and credit Supplies Expense $700 - debit Supplies Expense $700 and credit Supplies $700

Wencaster Services purchased office supplies from a bulk supply store on credit on July 17. The company received a bill on July 31, and the bill is due and paid on August 31. Where in the accounting equation will this transaction be recorded on July 31 versus August 31? - The July 31 transaction will be recorded as an Expense, and the August 31 transaction will be recorded in Notes Payable (liability) -both transactions will be recorded in Inventory (asset) and Account Payable (liability) -The July 31 transaction will be recorded in Expenses, and the August 31 transaction will be recorded in Accounts Payable (liability) -the July 31 transaction will be recorded as Inventory (asset) and in Accounts Payable (liability), and the August 31 transaction will be recorded in Cash (asset) and in Accounts Payable (liability)

On June 30, a printing shop provides $1,000 of services to a customer to custom print a restaurant menus. The customer is sent a bill on July 5 for the amount due. A check in the amount of $1,000 is received from the customer on July 25. The printing shop follows GAAP and applies the revenue recognition principle. When is the $1,000 revenue organized?-July 25-July 5-June 30-July 1

An adjusting entry generally - is always a compound entry -affects a balance sheet account and an income statement account -affects two balance sheets accounts -affects two income statement accounts

All of the following are considered internal users of Red Company, Inc, except: - Shareholders of Red Company Inc-Vice President of Red Company Inc-Marketing Manager of Red Company Inc-Any employee of Red Company Inc

the cost of assets consumed in the process generating revenue

A manufacturing company has received its monthly utility bill on January 31, and payment is due on February 14. Where would the utility bill be recorded on January 31 when the month ends and the bill is still unpaid-liabilities -dividends -revenues -assets

George Stevens has purchases 1,000 shares of stock in JKL Corporation. JKL recently reported a year-end net income of $1,400,000; JKL retains $1,000,000. George, along with his fellow stock holders, will receive the remainder in the form of -revenues -liabilities -dividends -withdrawals