HELP WITH THESE QUESTIONS

1.Which basic principle of accounting states that assets are initially recorded at the amounts paid to acquire the assets?

Select one:

A. Objectivity principle

B. Cost principle

C. Measuring unit concept

D. Going concern concept

E. None of the above

2.Urbana Company signed a one-year lease on April 1, 2016, and paid the $22,800 total year’s rent in advance. Urbana recorded the transaction as a debit to Prepaid Rent and a credit to Cash. 

What adjusting entry should Urbana make on December 31, 2016 (no previous adjustment has been made)?

Select one:

A.

17,100

17,100

B.

17,100

17,100

C.

5,700

5,700

D.

5,700

5,700

3.On January 1, 2016, Sirius Black Corporation's retained earnings account had a balance of $1,570,000. During 2016 the company had revenues of $270,000 and expenses of $186,000. On December 31, the company’s retained earnings had a balance of $1,601,000.

Determine the amount of dividends paid during 2016.

Select one:

A. $85,000

B. $53,000

C. $26,500

D. $61,500

4.Which one of the following is not a reason for which adjusting entries are made?

Select one:

A. To accrue expenses to reflect expenses incurred in the period that are not yet paid or recorded

B. To allocate the earned portion of unearned revenue to reflect revenues earned during the period

C. To close the income statement accounts and prepare them for the following year's activity

D. To allocate used or expired assets to reflect expenses incurred in the period

5.A trial balance that balances is useful because it indicates with certainty that:

Select one:

A. All entries into accounts during the period were made correctly.

B. All accounts have normal balances.

C. Total debits in the general ledger equal total credits.

D. All of the above

Rent Expense

17,100

 

 

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