Posted: August 1st, 2022

Accounting- Daly Investments (MCQ 24)

    

 

1 Question: Adjusting entries   can be classified as 

    
A

Postponements     and advances

 
B

Accruals and deferrals

 
C

Deferrals     and postponements

 
D

Accruals     and advances

    

2 Question: Daly Investments   purchased an 18-month insurance policy on May 31, 2010 for

$3,600

. The   December 31, 2010 balance sheet would report Prepaid Insurance of 

    
A

$0     because Prepaid Insurance is reported on the Income Statement

 
B

$1,400

 
C

$2,200

 
D
$3,600
 

3 Question: Daly Investments   purchased an 18-month insurance policy on May 31, 2010 for $3,600. The   December 31, 2010 balance sheet would report Prepaid Insurance of 

    
A
$0     because Prepaid Insurance is reported on the Income Statement
 
B
$1,400
 
C
$2,200
 
D
$3,600
 

4 Question: Southwestern City   College sold season tickets for the 2010 football season for

$160,000

. A   total of 8 games will be played during September, October and November.   Assuming all the games are played, the Unearned Revenue balance that will be   reported on the December 31 balance sheet will be 

    
A
$0
 
B

$60,000

 
C

$100

,000

 
D
$160,000
 

5 Question: The operating cycle   of a company is the average time that is required to go from cash to 

    
A

Sales     in producing revenues

 
B

Cash in producing revenues

 
C

Inventory     in producing revenues

 
D

Accounts     receivable in producing revenues

 

6 Question: The income statement   for the month of June, 2010 of Ramirez Enterprises contains the following   information:

The entry to close   Income Summary to Ramirez, Capital includes 

    
A

A     debit to Revenue for $7,000

 
B

Credits     to Expenses totaling $3,600

 
C

A     credit to Income Summary for $3,400

 
D

A     credit to Ramirez,     Capital for $3,400

 

7 Question: Joyce’s Gifts signs a three-month note   payable to help finance increases in inventory for the Christmas shopping   season. The note is signed on November 1 in the amount of $50,000 with annual   interest of 12%. What is the adjusting entry to be made on December 31 for   the interest expense accrued to that date, if no entries have been made   previously for the interest? A

    
A

 
B

 
C

 
D

    

8 Question: All of the following   statements about the post-closing trial balance are correct except it 

    
A

Shows     that the accounting equation is in balance

 
B

Provides     evidence that the journalizing and posting of closing entries have been     properly completed

 
C

Contains     only permanent accounts

 
D

Proves that all transactions have     been recorded

 

9 Question: The following items   are taken from the financial statements of Dinkel Company for the year ending   December 31, 2010:

What is the   company’s net income for the year ending December 31, 2010? 

    
A

$133,000

 
B

$42,000

 
C

$28,000

 
D

$12,000

 

10 Question: O.K.C. Company   collected

$8,400

in May of 2010 for four months of service which would take   place from October of 2010 through January of 2011. The revenue reported from   this transaction during 2010 would be 

    
A
0
 
B

$6,300

 
C
$8,400
 
D

$2,010

 

11 Question: The following   information is for Benton Office Supplies:

The total dollar   amount of assets to be classified as property, plant, and equipment is 

    
A

$320,000

 
B

$170,000

 
C

$245,000

 
D

$190,000

    

12 Question: Henry-K Company   purchased a computer system for $3,600 on January 1, 2010. The company   expects to use the computer system for 3 years. It has no salvage value.   Monthly depreciation expense on the asset is 

    
A
$0
 
B
$100
 
C

$1,200

 
D
$3,600
 

13 Question: What is the proper   adjusting entry at June 30, the end of the fiscal year, based on a prepaid   insurance account balance before adjustment, $15,500, and unexpired amounts   per analysis of policies of $4,500? 

    
A

Debit     Insurance Expense, $4,500; Credit Prepaid Insurance, $4,500

 
B

Debit     Insurance Expense, $15,500; Credit Prepaid Insurance, $15,500

 
C

Debit     Prepaid Insurance, $11,000; Credit Insurance Expense, $11,000

 
D

Debit Insurance Expense, $11,000;     Credit Prepaid Insurance, $11,000

    

14 Question: The following items   are taken from the financial statements of Dinkel Company for the year ending   December 31, 2010:

The   sub-classifications for assets on the company’s classified balance sheet   would include all of the following except 

    
A

Current     Assets

 
B

Property, Plant, and Equipment

 
C

Intangible     Assets

 
D

Long-term     Assets

 

15 Question: Can financial   statements be prepared directly from the adjusted trial balance? 

    
A

They     cannot. The general ledger must be used

 
B

Yes, adjusting entries have been     recorded in the general journal and posted to the ledger accounts

 
C

No,     the adjusted trial balance merely proves the equality of the total debit     and total credit balances in the ledger after adjustments are posted. It     has no other purpose

 
D

They     can because that is the only reason that an adjusted trial balance is     prepared

 

16 Question: The following   information is for Acme Auto Supplies:

The total dollar   amount of assets to be classified as current assets is 

    
A

220,000

 
B

$150,000

 
C

$300,000

 
D

$180,000

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