Accounts Receivable and Correct Marks

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1
Marks: 5
Which of the following events involves an accrual?
Choose one answer.
| a. Recording interest that has been earned but not received | | | b. Recording supplies that have been purchased with cash but not yet used. | | | c. Recording revenue that has been earned but not yet collected in cash. | | | d. A. and C. | |

Correct
Marks for this submission: 5/5.
Question 2
Marks: 5
Which resource provider typically receives first priority when resources are divided as part of a business's liquidation? Choose one answer.
| a. stockholders | |
| b. owners | |
| c. the company's managers | |
| d. creditors | |
Correct
Marks for this submission: 5/5.
Question 3
Marks: 5
Which of the following transactions involves a deferral?
Choose one answer.
| a. Recording salaries of employees earned but not yet paid. | | | b. Recording the interest earned (but not received) on a CD. | | | c. Recording interest accrued on a note payable. | |

| d. Recording the prepayment of three months rent. | |
Correct
Marks for this submission: 5/5.
Question 4
Marks: 5
Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States? Choose one answer.
| a. Internal Revenue Service | |
| b. U.S. Congress | |
| c. Governmental Accounting Standards Board | |
| d. Financial Accounting Standards Board | |
Correct
Marks for this submission: 5/5.
Question 5
Marks: 5
The left side of a T-account is known as the:
Choose one answer.
| a. Debit Side | |
| b. Credit side | |
| c. Claims side | |
| d. Equity side | |
Correct
Marks for this submission: 5/5.

1
Marks: 5
Product costs are matched against sales revenue
Choose one answer.
| a. in the period immediately following the sale. | |
| b. when the merchandise is purchased. | |
| c. when the sale is made. | |
| d. in the period immediately following the purchase. | | Correct
Marks for this submission: 5/5.
Question 2
Marks: 5
The left side of a T-account is known as the:
Choose one answer.
| a. Claims side | |
| b. Equity side | |
| c. Credit side | |
| d. Debit Side | |
Correct
Marks for this submission: 5/5.
Question 3
Marks: 5
When prices are rising, which method of inventory, if any, will result in the lowest relative net cash outflow (including the effects of taxes, if any)? Choose one answer.
| a. weighted average. | |
| b. FIFO | |
| c. LIFO | |
| d. None of these; inventory methods cannot affect cash flows. | | Incorrect
Marks for this submission: 0/5.
Question 4
Marks: 5
Which of the following is considered a period cost?
Choose one answer.
| a. Transportation cost on goods received from suppliers. | | | b. Cost of merchandise purchased. | |
| c. Packaging costs for merchandise to be sold. | |
| d. Advertising expense for the current month. | |
Correct
Marks for this submission: 5/5.
Question 5
Marks: 5
Which of the following is considered a product cost?
Choose one answer.
| a. Salaries paid to employees of a retailer. | |
| b. Utility expense for the current month. | |
| c. Transportation cost on goods received from suppliers. | | | d. Transportation cost on goods shipped to customers. | | Correct
Marks for this submission: 5/5.

1
Marks: 5
Receivables are normally reported on the balance sheet at net realizable value. In contrast, payables are carried at face value. Which accounting principle requires this treatment of payables? Choose one answer.

| a. Matching concept. | |
| b. Monetary unit assumption. | |
| c. Going concern assumption. | |
| d. Materiality concept. | |
Correct
Marks for this submission: 5/5.
Question 2
Marks: 5
The amount of accounts receivable that is actually expected to...
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