GB 518 Quiz 3\t\u00a0\t\u00a0\t\u00a0\tGB518 Financial Accounting Principles and Analysis\t1. \ufffd\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Which of the following elements are found on the income statement?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Cash\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Accounts Receivable\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Common Stock\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Retained Earnings\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Salaries Expense\t\u00a0\t\u00a0\t\u00a0\tQuestion 2. \ufffd Question : \ufffd\u00a0\u00a0 Fast-Forward had cash inflows from operations of $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0$40,500 increase\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$40,500 decrease\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$134,500 decrease\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$134,000 increase\t\u00a0\t\u00a0\tQuestion 3. \ufffd Question : \ufffd\u00a0\u00a0 A debit is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An increase in an account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0The right-hand side of a T-account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0A decrease in an account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0The left-hand side of a T-account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An increase to a liability account\t\u00a0\t\u00a0\tQuestion 4. \ufffd Question : \ufffd\u00a0\u00a0 Which of the following elements are found on the Balance Sheet?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Service Revenue\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Net Income\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Operating Activities\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Utilities Expense\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Retained Earnings\t\u00a0\t\u00a0\tQuestion 5. \ufffd Question : \ufffd\u00a0\u00a0 A credit is used to record:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An increase in an expense account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An increase in an asset account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0An increase in an unearned revenue account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0A decrease in a revenue account\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0A decrease to retained earnings\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tQuestion 6. \ufffd Question : \ufffd\u00a0\u00a0 Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Assets increase by $75,000 and expenses increase by $75,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Assets increase by $75,000 and expenses decrease by $75,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Liabilities increase by $75,000 and expenses decrease by $75,000\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Assets decrease by $75,000 and expenses decrease by $75,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Assets increase by $75,000 and liabilities increase by $75,000\t\u00a0\t\u00a0\tQuestion 7. \ufffd Question : \ufffd\u00a0\u00a0 Of the following accounts, the one that normally has a credit balance is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Cash\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Office Equipment\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Sales Salaries Payable\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Dividends\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Sales Salaries Expense\t\u00a0\t\u00a0\t\u00a0\tQuestion 8. \ufffd Question : \ufffd\u00a0\u00a0 The primary objective of financial accounting is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0To serve the decision-making needs of internal users\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0To provide financial statements to help external users analyze and interpret an organization’s activities\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0To monitor and control company activities\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0To provide information on both the costs and benefits of managing products and services\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0To know what, when and how much to produce\t\u00a0\t\u00a0\t\u00a0\tQuestion 9. \ufffd Question : \ufffd\u00a0\u00a0 The debt ratio is used:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0To measure the amount of equity relative to the expenses\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0To reflect the risk associated with a company’s debts\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Only by banks when a business applies for a loan\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0To determine how much debt a firm should pay off\t\u00a0\t\u00a0\tQuestion 10.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Going-concern principle\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Cost principle\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Revenue recognition principle\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Objectivity principle\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Business entity principle\t\u00a0\t\u00a0\tQuestion 11.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Creditors’ claims on the assets of a company are called:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Net losses\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Expenses\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Revenues\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Equity\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Liabilities\t\u00a0\t\u00a0\t\u00a0\tQuestion 12.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 An example of a financing activity is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Buying office supplies\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Obtaining a long-term loan\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Buying office equipment\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Selling inventory\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Buying land\t\u00a0\t\u00a0\tQuestion 13.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000 and purchased for $137,000. The land should be recorded in the purchaser’s books at:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$95,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0$137,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$138,500\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$140,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$150,000\t\u00a0\t\u00a0\tQuestion 14.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Prepaid expenses are:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Payments made for products and services that do not ever expire\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Classified as liabilities on the balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Decreases in retained earnings\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Assets that represent prepayments of future expenses\t\u00a0\t\u00a0\t\u00a0\tQuestion 15.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 A company has twice as much owner’s equity as it does liabilities. If total liabilities are $50,000, what amounts of assets are owned by the company?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$50,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$100,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0$150,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$200,000\t\u00a0\t\u00a0\t\u00a0\tQuestion 16.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 The main purpose of adjusting entries is to:\t\u00a0\t \ufffd \ufffd\u00a0 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \u00a0Record external transactions and events\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Record internal transactions and events\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Recognize assets purchased during the period\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Recognize debts paid during the period\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Correct errors\t\u00a0\t\u00a0\t\u00a0\tQuestion 17.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Which of the following statements is incorrect?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An income statement reports revenues earned less expenses incurred\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Interim financial reports can be based on one-month or three-month accounting periods\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Property, plant and equipment are referred to as plant assets\t\u00a0\t\u00a0\tQuestion 18.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Prepaid Insurance, $1,800; credit Cash, $1,800\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Prepaid Insurance, $360; credit Insurance Expense, $360\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Debit Insurance Expense, $360; credit Prepaid Insurance, $360\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440\t\u00a0\t\u00a0\tQuestion 19.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Unpaid Salaries $600 and credit Salaries Payable $600\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Debit Salaries Expense $400 and credit Salaries Payable $400\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Salaries Expense $600 and credit Salaries Payable $600\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Debit Salaries Payable $400 and credit Salaries Expense $400\t\u00a0\t\u00a0\t\u00a0\tQuestion 20.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance?\tCash\u00a0\u00a0\u00a0 $ 6,754 \ufffd \ufffd Dividends \ufffd\u00a0 $ 2,000\tAccounts receivable\u00a0\u00a0\u00a0 $ 13,733 \ufffd\u00a0\u00a0\u00a0\u00a0 Consulting fees earned \ufffd\u00a0\u00a0\u00a0\u00a0 $ 13,718\tOffice supplies \ufffd \ufffd\u00a0 $ 2,625 \ufffd \ufffd Rent expense\u00a0\u00a0 $ 3,673\tLand\u00a0\u00a0\u00a0 $ 37,153 \ufffd\u00a0\u00a0\u00a0\u00a0 Salaries expense \ufffd\u00a0\u00a0\u00a0\u00a0 $ 6,642\tOffice equipment \ufffd\u00a0\u00a0 $ 14,535 \ufffd\u00a0\u00a0\u00a0\u00a0 Telephone expense \ufffd $ 560\tAccounts payable \ufffd\u00a0\u00a0 $ 6,463 \ufffd \ufffd Miscellaneous expense \ufffd \ufffd\u00a0 $ 280\tCommon stock \ufffd \ufffd $ 54,490 \ufffd\u00a0\u00a0\u00a0\u00a0 Retained Earnings \ufffd ?\t\u00a0\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$0\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$13,718\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$13,155\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0$13,284\t\u00a0\t\u00a0\t \ufffd \ufffd\u00a0\tQuestion 21.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Unearned revenue is reported on the financial statements as:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0A revenue on the balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0A liability on the balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An unearned revenue on the income statement\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An asset on the balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0An operating activity on the statement of cash flows\t\u00a0\t\u00a0\tQuestion 22.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Which of the following identifies the proper order of the accounting cycle?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Analyze, Journalize, Unadjusted Trial Balance\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Analyze, Post, Unadjusted Trial Balance\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Journalize, Post, Adjusted Trial Balance\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Unadjusted Trial Balance, Adjusted Trial Balance, Close\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Adjusted Trial Balance, Adjustments, Financial Statements\t\u00a0\t\u00a0\t\u00a0\tQuestion 23.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Cash basis accounting\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0The matching principle\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0The time period principle\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Accrual basis accounting\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Revenue basis accounting\t\u00a0\t\u00a0\t\u00a0\tQuestion 24.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 A balance sheet that places the assets above the liabilities and equity is called a(n):\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Report form balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Account form balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Classified balance sheet\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Unadjusted balance sheet\t\u00a0\t\u00a0\t\u00a0\tQuestion 25.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 A classified balance sheet:\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Measures a company’s ability to pay its bills on time\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0Organizes assets and liabilities into important subgroups\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Presents revenues, expenses and net income\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Reports operating, investing and financing activities\t\u00a0\t\u00a0\tQuestion 26.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0 \u00a0$3,250\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$3,500\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$4,000\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0$6,500\t\u00a0\t \ufffd \ufffd\u00a0\u00a0\u00a0&<\/p>\n","protected":false},"excerpt":{"rendered":"
GB 518 Quiz 3 \u00a0 \u00a0 \u00a0 GB518 Financial Accounting Principles and Analysis 1. \ufffd\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 Which of the following elements are found on the income statement? \u00a0 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \u00a0Cash \u00a0 \ufffd Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-217235","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=217235"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217235\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=217235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=217235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=217235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}