ACCT 105 Week 3 Quiz

Question 110 / 10 points

The depreciation expense on office equipment was recorded by a debit to Depreciation Expense and a credit to Office Equipment. If statements are now prepared:Question options:

net income a stockholders’ equity are correct.
the total dollar amount of total assets is correct but the details shown on the balance sheet are in error.
total liabilities are correct.
All of the above.
(a) and (c), but not (b).
Question 20 / 10 points

If the subtotal of the income statement debit column is $250,000, the subtotal of the income statement credit column is $300,000, and the total of the Statement of Retained Earnings debit column is $475,000, what is the beginning balance in Retained Earnings? (Assume no dividends were declared.)Question options:

$425,000
$250,000
$525,000
$300,000
None of the above.
Question 310 / 10 points

Which of the following statements is false?Question options:

Inclusion of special journals and subsidiary ledgers increased the efficiency of the manual accounting system.
Microcomputers were used for accounting functions before mainframe computers.
Even if special journals are used, the general journal is used.
Many accounting software packages are relatively inexpensive (under $500).
Question 410 / 10 points

The completed-contract method is a method of recognizing revenue on long-term projects in which no revenue is recognized until the period in which the project is completed.Question options:

True
False
Question 510 / 10 points

The completed-contract method recognizes revenues at the point of sale.Question options:

True
False
Question 610 / 10 points

The historical cost approach to recording accounting data has been severely criticized in periods of high inflation because often the income statement reports income when the economic value of the owner’s investment has declined.Question options:

True
False
Question 710 / 10 points

Losses are asset expirations which are incurred voluntarily to produce revenue.Question options:

True
False
Question 810 / 10 points

The installment basis of revenue recognition is acceptable only when a high degree of certainty exists as to the collectability of the installments.Question options:

True
False
Question 910 / 10 points

Materiality is a modifying convention which allows the accountant to deal with immaterial items in a theoretically incorrect but expedient manner.Question options:

True
False
Question 1010 / 10 points

Many accounting measurements are estimates and involve approximation and judgment.Question options:

True
False