I Only Want The Correct Option in these MCQs can u please help me 41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for$20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using thestraight-line method at 25% per annum on a month by month basis.What was the profit or loss on the disposal of the machine?a. loss $1000b. loss $1500c. profit $1000d. profit $150042. under a perpetual inventory system, when goods are purchased for resale by a company:a. purchases on account are debited to Inventory.b. purchases on account are debited to Purchases.c. purchase returns are debited to Purchase Returns and Allowances.d. freight costs are debited to Freight-out.43. The sales accounts that normally have a debit balance are:a. Sales Discounts.b. Sales Returns and Allowances.c. Both (a) and (b).d. Neither (a) nor (b).44. Bell Company has the following:UnitsUnit CostInventory, Jan. 18,000$1Purchase, June 1913,00012Purchase, Nov. 85,00013If Tinker Bell has 9,000 units on hand at December 31, the cost of the ending inventory underFIFO is:a. $99,000b. $108,000c. $113,000.d. $117,00045. Using the data in Question 44 above, the cost of the ending inventory under LIFO is:a. $113,000b. $108,000c. $99,000.d. $100,00011 37. Which of the following statements about the accrual basis of accounting is false?a. Events that change a company's financial statements are recorded in the periods in which theevents occur.b. Revenue is recognized in the period in which it is earned.c. This basis is in accord with generally accepted accounting principles.d. Revenue is recorded only when cash is received, and expense is recorded only when cash ispaid.38. Adjustments for unearned revenues:a. decrease liabilities and increase revenues.b. have an assets and revenues account relationship.c. increase assets and increase revenues.d. decrease revenues and decrease assets.39. The principle or assumption dictating that efforts (expenses) be matched withaccomplishments (revenues) is the:a. expense recognition principle.b. cost assumption.c. time period principle.d. revenue recognition principle.40. What is correct about a bank reconciliation statement?prepared bythe bankprepared bythe traderpart of double entrybook-keepingAnoyesnonoyesyesyesnonoDyesnoyes10

41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for $20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using the straight-line method at 25% per annum on a month by month basis. What was the profit or loss on the disposal of the machine? a. loss $1000 b. loss $1500 c. profit $1000 d. profit $1500

41. Imran's financial year ends on 31 December. A machine purchased on 1 January 2015 for $20 000 was sold on 30 June 2017 for $8500. The machine had been depreciated using the straight-line method at 25% per annum on a month by month basis. What was the profit or loss on the disposal of the machine? a. loss $1000 b. loss $1500 c. profit $1000 d. profit $1500

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 1MCQ: Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a...

See similar textbooks

Similar questions

That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.
Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A. accrual basis accounting B. cash basis accounting C. tax basis accounting D. revenue basis accounting
The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation.
When a company recognizes revenue during a period, what does it also recognize in its balance sheet?
What is the effect on the accounting equation when a business pays the balance due on accounts payable?
Under the cash basis of accounting, which of the following statements is true? a. Revenue is recorded when it is earned, regardless of when the cash is received. b. Expenses are recorded when they are paid. c. Expenses are recorded when they are incurred, regardless of when the cash is paid. d. The cash basis of accounting is allowed for all corporations.
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
Which of the following statements is false? A. Noncash activities should be reported in accrual basis financial statements. B. Net cash flow from operating activities relates to normal business operations. C. Net income usually equals net cash flow from operating activities. D. The statement of cash flows is an essential part of the basic financial statements.