ADM1340 IN CLASS MULTIPLE CHOICE
QUESTIONS WITH 100% ACCURATE ANSWERS
A consulting firm received $30,000 cash for consulting services to be rendered in the future. The full
amount was credited to Deferred Revenue. If the consulting services have been provided by the end of
the accounting period and no adjusting entry has previously been made, this would cause - Accurate
answers revenues to be understated
On July 1, Carleton Inc. paid $30,000 to ABC Rentals for six month's rent, starting July 1.
Prepaid rent was debited for the full amount. What adjusting entry should Carleton Inc.
should make when it prepares financial statements on July 31? - Accurate answers debit Rent
Expense, 5,000; credit
Prepaid Rent, 5,000
Which form of organization is easier to raise funds? - Accurate answers public corporation
Which one is the easiest form of organization to set up? - Accurate answers sole proprietorship
The investing activity in a business involves - Accurate answers the purchase of assets such as land.
Which of the following financial statements is prepared as of a specific point in time? - Accurate
answers Statement of Financial Position
Net income will result during a time period when: - Accurate answers revenues exceed expenses
Joe Refresh Ltd. had a balance in its Retained Earnings account of 400,000 at the beginning of the year
and 450,000 at the end of the year. The company earned 150,000 during the year.
The amount of dividend declared or paid is: - Accurate answers $100,000
Patents and copyrights are: - Accurate answers intangible assets
Which of the following is not a long-term liability? - Accurate answers Current maturities of long-
term debt
The balance in retained earnings is not affected by: - Accurate answers Issuance of common stock
For 2022, Kanata Company reported net income 26,000; net sales 400,000; and the weighted-average
common shares outstanding 6,000.
Preferred dividends were 2,000.
What was the 2022 earnings per share? - Accurate answers $4.00
increase assets and decrease liabilities - Accurate answers Debits
Accounts that normally have debit balances are - Accurate answers assets, dividends, and
expenses
