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Question 1
0 out of 10 points
On 1 July 2009, Canine Company signed a two-year $50 000 note payable with 8 percent interest. At due date, 1 July 2011, the principal and interest will be paid in full. Interest expense should be reported on the income statement for the year ended 31 December 2009, in the amount of:
Answer
Correct Answer: $ 2 000.
Question 2
10 out of 10 points
Which of the following statements is false about earnings per share?
Answer
Correct Answer: It discloses the amount of dividends on a per ordinary share basis
Question 3
10 out of 10 points
Which of the following accounts would most likely lead to deferred adjustment? (select the best answer)
Answer
Correct Answer: Both office supplies and prepaid insurance would lead to deferred adjustments
Question 4
0 out of 10 points
At the end of its accounting period, 31 December 2009, August Corporation owed $1 000 for property taxes which had not been recorded or paid. Therefore, the 2009, adjusting entry should be:
Answer
Correct Answer: $1 000 credited to a liability account and debited to an expense account.
Question 5
10 out of 10 points
The primary purpose of closing entries is to:
Answer
Correct Answer: update the balance of retained earnings and prepare revenue, expense, and dividend accounts for next period’s transactions.
Question 6
10 out of 10 points
Net profit would appear on the:
Answer
Correct Answer: statement of changes in equity and income statement.
Question 7
0 out of 10 points
A machine that cost $28 000 (GST excl.) was purchased at the beginning of the current year. Its estimated useful life is 8 years and its estimated residual value is $4 000. The adjusting entry at the end of the first year would include a:
Answer
Correct Answer: $3 000 credit to
0 out of 10 points
On 1 July 2009, Canine Company signed a two-year $50 000 note payable with 8 percent interest. At due date, 1 July 2011, the principal and interest will be paid in full. Interest expense should be reported on the income statement for the year ended 31 December 2009, in the amount of:
Answer
Correct Answer: $ 2 000.
Question 2
10 out of 10 points
Which of the following statements is false about earnings per share?
Answer
Correct Answer: It discloses the amount of dividends on a per ordinary share basis
Question 3
10 out of 10 points
Which of the following accounts would most likely lead to deferred adjustment? (select the best answer)
Answer
Correct Answer: Both office supplies and prepaid insurance would lead to deferred adjustments
Question 4
0 out of 10 points
At the end of its accounting period, 31 December 2009, August Corporation owed $1 000 for property taxes which had not been recorded or paid. Therefore, the 2009, adjusting entry should be:
Answer
Correct Answer: $1 000 credited to a liability account and debited to an expense account.
Question 5
10 out of 10 points
The primary purpose of closing entries is to:
Answer
Correct Answer: update the balance of retained earnings and prepare revenue, expense, and dividend accounts for next period’s transactions.
Question 6
10 out of 10 points
Net profit would appear on the:
Answer
Correct Answer: statement of changes in equity and income statement.
Question 7
0 out of 10 points
A machine that cost $28 000 (GST excl.) was purchased at the beginning of the current year. Its estimated useful life is 8 years and its estimated residual value is $4 000. The adjusting entry at the end of the first year would include a:
Answer
Correct Answer: $3 000 credit to