Question 1
Springville Distributors made sales using a list price of $880 and a trade discount of 30%.
What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616
ANSWER
D
Question 2
Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission
(SEC) final say on matters of financial reporting by publicly owned corporations.
A) True
B) False
ANSWER
A
Question 3
When equipment is purchased for cash,
A) one asset increases and another asset decreases
1
, B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease
ANSWER
A
Question 4
Tax planning is any activity associated with the preparation of tax returns and the audit of
those returns.
A) True
B) False
ANSWER
B
Question 5
The frequency of deposits of federal income taxes withheld and social security and Medicare
taxes is determined by the amount owed.
A) True
B) False
ANSWER
A
Question 6
Which of the following is not a reason why the book balance of cash may not agree with the
balance on the bank statement?
2
Springville Distributors made sales using a list price of $880 and a trade discount of 30%.
What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616
ANSWER
D
Question 2
Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission
(SEC) final say on matters of financial reporting by publicly owned corporations.
A) True
B) False
ANSWER
A
Question 3
When equipment is purchased for cash,
A) one asset increases and another asset decreases
1
, B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease
ANSWER
A
Question 4
Tax planning is any activity associated with the preparation of tax returns and the audit of
those returns.
A) True
B) False
ANSWER
B
Question 5
The frequency of deposits of federal income taxes withheld and social security and Medicare
taxes is determined by the amount owed.
A) True
B) False
ANSWER
A
Question 6
Which of the following is not a reason why the book balance of cash may not agree with the
balance on the bank statement?
2
