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ACCT 5312 Final Verified Exam Questions and
Answers Practice Questions with Solutions Newest |
Already Graded A+||Newest Exam!!!
6. A cash equivalent is a current asset that:
A. will be converted to cash within one year.
B. will be converted to cash within one month.
C. is readily convertible into cash with a minimal risk.
D. is readily convertible into cash with a substantial risk.
E. none of these. - Answer-is readily convertible into cash
with a minimal risk.
7. The accounting concept or principle applied when the
cost of short-term marketable securities is adjusted to
market value is:
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A. objectivity.
B. matching revenue and expense.
C. original cost.
D. consistency. - Answer-matching revenue and expense.
8. The accrual of interest on short-term marketable
securities results in:
A. an increase in current assets and a decrease in net
income.
B. an increase in current assets and an increase in net
income.
C. an increase in noncurrent assets and an increase in
liabilities.
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D. an increase in current liabilities and an increase in net
income. - Answer-an increase in current assets and an
increase in net income.
9. The accounting concept or principle applied when an
allowance is provided for estimated uncollectible accounts
receivable is:
A. consistency.
B. matching revenue and expense.
C. original cost.
D. objectivity. - Answer-matching revenue and expense.
10. The allowance for uncollectible accounts is a(n):
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A. asset.
B. contra current asset.
C. expense.
D. contra revenue. - Answer-contra current asset.
1. The current assets of most companies are usually made
up of:
A. assets that are currently used in the operations of the
company.
B. cash and assets expected to be converted to cash
within a year.
C. a very small proportion (less than 10%) of the total
assets of the entity.
D. cash, marketable securities, and accounts and notes
receivable. - Answer-cash and assets expected to be
converted to cash within a year.
ACCT 5312 Final Verified Exam Questions and
Answers Practice Questions with Solutions Newest |
Already Graded A+||Newest Exam!!!
6. A cash equivalent is a current asset that:
A. will be converted to cash within one year.
B. will be converted to cash within one month.
C. is readily convertible into cash with a minimal risk.
D. is readily convertible into cash with a substantial risk.
E. none of these. - Answer-is readily convertible into cash
with a minimal risk.
7. The accounting concept or principle applied when the
cost of short-term marketable securities is adjusted to
market value is:
,2|Page
A. objectivity.
B. matching revenue and expense.
C. original cost.
D. consistency. - Answer-matching revenue and expense.
8. The accrual of interest on short-term marketable
securities results in:
A. an increase in current assets and a decrease in net
income.
B. an increase in current assets and an increase in net
income.
C. an increase in noncurrent assets and an increase in
liabilities.
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D. an increase in current liabilities and an increase in net
income. - Answer-an increase in current assets and an
increase in net income.
9. The accounting concept or principle applied when an
allowance is provided for estimated uncollectible accounts
receivable is:
A. consistency.
B. matching revenue and expense.
C. original cost.
D. objectivity. - Answer-matching revenue and expense.
10. The allowance for uncollectible accounts is a(n):
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A. asset.
B. contra current asset.
C. expense.
D. contra revenue. - Answer-contra current asset.
1. The current assets of most companies are usually made
up of:
A. assets that are currently used in the operations of the
company.
B. cash and assets expected to be converted to cash
within a year.
C. a very small proportion (less than 10%) of the total
assets of the entity.
D. cash, marketable securities, and accounts and notes
receivable. - Answer-cash and assets expected to be
converted to cash within a year.
