Accounting 2010 Final Exam Multiple Choice Questions and Correct Answers

Each of the following is one of the four basic financial statements except what? a. income statement b. statement of cash flows c. statement of stockholders' equity d. balance sheet e. bank statement e. bank statement All of the following items are classified on the income statement as a revenue expect what? a. sales revenue b. interest income c. service revenue d. deferred revenue d. deferred revenue Which of the following is an adjusting entry? a. recording depreciation expense b. debit unearned revenue; credit sales revenue c. debit rent expense; credit prepaid rent d. all of the above d. all of the above The primary purpose of the balance sheet is to do what? report the resources owned, amounts owed, and owners' interest in the company at a point in time Mark Corporation reported the following on December 31, 2016: total assets, $65,000; total liabilities, $20,000; contributed capital, $30,000. Therefore, retained earnings was $15,000 When would a company report a net loss its expenses exceeded its revenues for an accounting period Adjusting entries: recognize expensive in the period incurred, recognize revenue in the period it is earned, and affect both income statement and balance sheet accounts The entries that transfer revenues and expenses to retained earnings at the end of the period are referred to as: closing entries A classified balance sheet: organizes assets and liabilities into current and long-term subgroups Which of the following assets is NOT depreciated? a. store fixtures b. computers c. land d. buildings land