{"id":99297,"date":"2022-10-13T07:00:40","date_gmt":"2022-10-13T07:00:40","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/accounting-daly-investments-mcq-24\/"},"modified":"2022-10-13T07:00:40","modified_gmt":"2022-10-13T07:00:40","slug":"accounting-daly-investments-mcq-24","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/accounting-daly-investments-mcq-24\/","title":{"rendered":"Accounting- daly investments (mcq 24)"},"content":{"rendered":"
\n

\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

1 Question: <\/strong>Adjusting entries \u00a0\u00a0can be classified as\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

Postponements \u00a0\u00a0\u00a0\u00a0and advances<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Accruals and deferrals<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

Deferrals \u00a0\u00a0\u00a0\u00a0and postponements<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

Accruals \u00a0\u00a0\u00a0\u00a0and advances<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

2 Question: <\/strong>Daly Investments \u00a0\u00a0purchased an 18-month insurance policy on May 31, 2010 for $3,600. The \u00a0\u00a0December 31, 2010 balance sheet would report Prepaid Insurance of\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

$0 \u00a0\u00a0\u00a0\u00a0because Prepaid Insurance is reported on the Income Statement<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$1,400<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$2,200<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$3,600<\/p>\n

\u00a0<\/p>\n

3 Question: <\/strong>Daly Investments \u00a0\u00a0purchased an 18-month insurance policy on May 31, 2010 for $3,600. The \u00a0\u00a0December 31, 2010 balance sheet would report Prepaid Insurance of\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

$0 \u00a0\u00a0\u00a0\u00a0because Prepaid Insurance is reported on the Income Statement<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$1,400<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$2,200<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$3,600<\/p>\n

\u00a0<\/p>\n

4 Question: <\/strong>Southwestern City \u00a0\u00a0College sold season tickets for the 2010 football season for $160,000. A \u00a0\u00a0total of 8 games will be played during September, October and November. \u00a0\u00a0Assuming all the games are played, the Unearned Revenue balance that will be \u00a0\u00a0reported on the December 31 balance sheet will be\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

$0<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$60,000<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$100,000<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$160,000<\/p>\n

\u00a0<\/p>\n

5 Question: <\/strong>The operating cycle \u00a0\u00a0of a company is the average time that is required to go from cash to\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

Sales \u00a0\u00a0\u00a0\u00a0in producing revenues<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Cash in producing revenues<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

Inventory \u00a0\u00a0\u00a0\u00a0in producing revenues<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

Accounts \u00a0\u00a0\u00a0\u00a0receivable in producing revenues<\/p>\n

\u00a0<\/p>\n

6 Question: <\/strong>The income statement \u00a0\u00a0for the month of June, 2010 of Ramirez Enterprises contains the following \u00a0\u00a0information:
\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Questions\/5697893.bmp\"<\/p>\n

The entry to close \u00a0\u00a0Income Summary to Ramirez, Capital includes\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

A \u00a0\u00a0\u00a0\u00a0debit to Revenue for $7,000<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Credits \u00a0\u00a0\u00a0\u00a0to Expenses totaling $3,600<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

A \u00a0\u00a0\u00a0\u00a0credit to Income Summary for $3,400<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

A \u00a0\u00a0\u00a0\u00a0credit to Ramirez, \u00a0\u00a0\u00a0\u00a0Capital for $3,400<\/p>\n

\u00a0<\/p>\n

7 Question: <\/strong>Joyce\u2019s Gifts signs a three-month note \u00a0\u00a0payable to help finance increases in inventory for the Christmas shopping \u00a0\u00a0season. The note is signed on November 1 in the amount of $50,000 with annual \u00a0\u00a0interest of 12%. What is the adjusting entry to be made on December 31 for \u00a0\u00a0the interest expense accrued to that date, if no entries have been made \u00a0\u00a0previously for the interest? A<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Answers\/30505799.bmp\"<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Answers\/30505800.bmp\"<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Answers\/30505801.bmp\"<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Answers\/30505802.bmp\"<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

8 Question: <\/strong>All of the following \u00a0\u00a0statements about the post-closing trial balance are correct except it\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

Shows \u00a0\u00a0\u00a0\u00a0that the accounting equation is in balance<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Provides \u00a0\u00a0\u00a0\u00a0evidence that the journalizing and posting of closing entries have been \u00a0\u00a0\u00a0\u00a0properly completed<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

Contains \u00a0\u00a0\u00a0\u00a0only permanent accounts<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

Proves that all transactions have \u00a0\u00a0\u00a0\u00a0been recorded<\/p>\n

\u00a0<\/p>\n

9 Question: <\/strong>The following items \u00a0\u00a0are taken from the financial statements of Dinkel Company for the year ending \u00a0\u00a0December 31, 2010:
\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Questions\/5701187-1.bmp\"<\/p>\n

What is the \u00a0\u00a0company\u2019s net income for the year ending December 31, 2010?\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

$133,000<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$42,000<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$28,000<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$12,000<\/p>\n

\u00a0<\/p>\n

10 Question: <\/strong>O.K.C. Company \u00a0\u00a0collected $8,400 in May of 2010 for four months of service which would take \u00a0\u00a0place from October of 2010 through January of 2011. The revenue reported from \u00a0\u00a0this transaction during 2010 would be\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

0<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$6,300<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$8,400<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$2,010<\/p>\n

\u00a0<\/p>\n

11 Question: <\/strong>The following \u00a0\u00a0information is for Benton Office Supplies:
\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Questions\/5701180.bmp\"<\/p>\n

The total dollar \u00a0\u00a0amount of assets to be classified as property, plant, and equipment is\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

$320,000<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$170,000<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$245,000<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$190,000<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

12 Question: <\/strong>Henry-K Company \u00a0\u00a0purchased a computer system for $3,600 on January 1, 2010. The company \u00a0\u00a0expects to use the computer system for 3 years. It has no salvage value. \u00a0\u00a0Monthly depreciation expense on the asset is\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

$0<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$100<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$1,200<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$3,600<\/p>\n

\u00a0<\/p>\n

13 Question: <\/strong>What is the proper \u00a0\u00a0adjusting entry at June 30, the end of the fiscal year, based on a prepaid \u00a0\u00a0insurance account balance before adjustment, $15,500, and unexpired amounts \u00a0\u00a0per analysis of policies of $4,500?\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

Debit \u00a0\u00a0\u00a0\u00a0Insurance Expense, $4,500; Credit Prepaid Insurance, $4,500<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Debit \u00a0\u00a0\u00a0\u00a0Insurance Expense, $15,500; Credit Prepaid Insurance, $15,500<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

Debit \u00a0\u00a0\u00a0\u00a0Prepaid Insurance, $11,000; Credit Insurance Expense, $11,000<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

Debit Insurance Expense, $11,000; \u00a0\u00a0\u00a0\u00a0Credit Prepaid Insurance, $11,000<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

14 Question: <\/strong>The following items \u00a0\u00a0are taken from the financial statements of Dinkel Company for the year ending \u00a0\u00a0December 31, 2010:
\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Questions\/5701194-1.bmp\"<\/p>\n

The \u00a0\u00a0sub-classifications for assets on the company\u2019s classified balance sheet \u00a0\u00a0would include all of the following except\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

Current \u00a0\u00a0\u00a0\u00a0Assets<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Property, Plant, and Equipment<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

Intangible \u00a0\u00a0\u00a0\u00a0Assets<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

Long-term \u00a0\u00a0\u00a0\u00a0Assets<\/p>\n

\u00a0<\/p>\n

15 Question: <\/strong>Can financial \u00a0\u00a0statements be prepared directly from the adjusted trial balance?\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

They \u00a0\u00a0\u00a0\u00a0cannot. The general ledger must be used<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

Yes, adjusting entries have been \u00a0\u00a0\u00a0\u00a0recorded in the general journal and posted to the ledger accounts<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

No, \u00a0\u00a0\u00a0\u00a0the adjusted trial balance merely proves the equality of the total debit \u00a0\u00a0\u00a0\u00a0and total credit balances in the ledger after adjustments are posted. It \u00a0\u00a0\u00a0\u00a0has no other purpose<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

They \u00a0\u00a0\u00a0\u00a0can because that is the only reason that an adjusted trial balance is \u00a0\u00a0\u00a0\u00a0prepared<\/p>\n

\u00a0<\/p>\n

16 Question: <\/strong>The following \u00a0\u00a0information is for Acme Auto Supplies:
\"http:\/\/attachments.bisk.com\/TestEngine\/Live\/Attachments\/Questions\/5701183.bmp\"<\/p>\n

The total dollar \u00a0\u00a0amount of assets to be classified as current assets is\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/p>\n

A<\/strong><\/p>\n

220,000<\/p>\n

\u00a0<\/p>\n

B<\/strong><\/p>\n

$150,000<\/p>\n

\u00a0<\/p>\n

C<\/strong><\/p>\n

$300,000<\/p>\n

\u00a0<\/p>\n

D<\/strong><\/p>\n

$180,000<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0 1 Question: Adjusting entries \u00a0\u00a0can be classified as\u00a0 \u00a0\u00a0\u00a0\u00a0 A Postponements \u00a0\u00a0\u00a0\u00a0and advances \u00a0 B Accruals and deferrals \u00a0 C Deferrals \u00a0\u00a0\u00a0\u00a0and postponements \u00a0 D Accruals \u00a0\u00a0\u00a0\u00a0and advances \u00a0\u00a0\u00a0\u00a0 2 Question: Daly Investments \u00a0\u00a0purchased an 18-month insurance policy on May 31, 2010 for $3,600. The \u00a0\u00a0December 31, 2010 balance sheet would report Prepaid Insurance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-99297","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/99297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=99297"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/99297\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=99297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=99297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=99297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}