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Question: fotal labilities increased by 7000 c from the point of...

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fotal labilities increased by $7,000. c. From the point of view of a short-term creditor, this transaction makes the business more liquid d. This transaction had an immediate effect on the owners equity in the business. 3. The following statements correctly describe net income except a. Net income is equal to revenue minus the sum of expenses and dividends. b. Net income is equal to revenue minus expenses. c. Net income increases owners equity d. Net income is reported by a company for a specific period of time. 4is a type of account credited when customers pay in advance for services to be rendered in the future. a. Prepaid expenses b. Accrued expenses d. Unrecorded revenue c. Unearned revenue 5is the method used to record the cost of goods sold when each unit in the inventory is unique a. Specific identification b. FIFO method c. LIFO method d. Average method 6. Which of the following accounts may appear on a post-closing trial balance? a. Cash, Salaries Payable, and Capital c. Cash, Service Revenue and Salaries Expense d. Cash, Salaries Payable, and Salaries Expense 7. The Sarbanes-Oxley Act a. created the Private Company Accounting Board b. Cash, Salaries Payable, and Service Revenue b. allows accountants to audit and to perform any type of consulting work for a public company. c. stipulates that violators of the act may serve 20 years in prison for securities fraud. d. requires that an outside auditor must evaluate a public companys internal control.
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8.The entry to record a write-off of an uncollectible account when using the direct write off method involve a. debit to Allowance for Bad Debts c.credit to Cash b. debit to Accounts Receivable d. debits to Bad Debts Expense 9. A copy machine costs $45,000 when new and has accumulated depreciation of $44,000. Suppose your company sold the machine for $1,000. What is the result of the disposal transaction? a. No gain no loss c. Gain of $1,000 10. Your company sells $180,000 (selling price) of goods and collects sales of tax of 8%, what current liability does the sales create? a. Sales revenue of $194,400 c. Sales tax payable of $14,400 b. Loss of $1,000 d. Loss of $45,000 b. Unearned Revenue of $194,400 d. Sales revenue of $180,000
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