BUS 591 Week 2 Quiz

1. When a company receives a utility bill but will not pay it right away, it should (Points : 1)

2. Is the purchase of equipment treated as an expense at the time of purchase? Why or why not? (Points : 1)

3. Unearned revenue is classified as a(n): (Points : 1)

4. Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting.

(Points : 1)

5. The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand.  The adjusting entry that should be made by the company on June 30 is: (Points : 1)

6. In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a (Points : 1)

7. Which of the following accounts has a normal credit balance? (Points : 1)

8. The following is selected information from C Corporation for the fiscal year ending October 31, 2011.
 

 
Based on the accrual basis of accounting, what is C Corporation's net income for the year ending October 31, 2011? (Points : 1)

9. Expenses are recognized when: (Points : 1)

10. Assets normally show (Points : 1)