::: vuaskari.com ::: fin621 mcqs help required

Which option is correct

 

A business has purchased a building on credit, how it would be recorded in the

journal?

􀀀 Building - Credit; Accounts payable - Debit

􀀀 Building - Debit; Notes payable -Credit

􀀀 Building - Debit; Owner's equity- Credit

􀀀 Building - Debit; Accounts payable – Credit

 

Which of the following is TRUE regarding the entry to recognize the depreciation expenses?

􀀀 It is an application of matching principle

􀀀 It is a closing entry

􀀀 Usually includes an offsetting credit either to cash or accounts payable

􀀀 It is done only at the end of financial year

 

Which of the following activities convert the income statement items from the accrual basis

of accounting to cash?

► Operating activities

► Investing activities

► Financing activities

► Non cash activities

 

Which of the following is NOT normally required for revenue to be recognized according to the revenue principle for accrual basis accounting?

The price is fixed or determinable

Services have been performed

Cash that has already been collected

Evidence of an arrangement for customer payment exists

--

Abdul Aziz

MBA-4th Semester (Finance)

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