4. The cost of an asset and its fair value are Select answer from the options below: a) irrelevant when the asset is used by the business in its operations. b)never the same c) the same on the date of acquisition. d) the same when the asset is sold. 6. If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates Select answer from the options below: a. no errors can be discovered. b. no errors have been made. c. the mathematical equality of the accounting equation. . that all accounts reflect correct balances. 7. The final step in the recording process is to Select answer from the options below: a. enter the transaction in a journal. b. prepare a trial balance. c. transfer journal information to ledger accounts. d. analyze each transaction. 8. The time period assumption states that Select answer from the options below: a. the economic life of a business can be divided into artificial time periods. b. estimates should not be made if a transaction affects more than one time period. c. adjustments to the company's accounts can only be made in the time period when the business terminates its operations. d. a transaction can only affect one period of time. 9. Under accrual - basis accounting Select answer from the options below a. net income is calculated by matching cash outflows against cash inflows. b. cash must be received before revenue is recognized. c. events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. d. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. 10. Sunland Company purchased supplies costing $7030 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1870 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be Select answer from the options below a. Debit Supplies Expense, $1870; Credit Supplies, $1870. b. Debit Supplies, $1870; Credit Supplies Expense, $1870. c. Debit Supplies, $5160; Credit Supplies Expense, $5160. d. Debit Supplies Expense, $5160; Credit Supplies, $5160.

4. The cost of an asset and its fair value are Select answer from the options below: a) irrelevant when the asset is used by the business in its operations. b)never the same c) the same on the date of acquisition. d) the same when the asset is sold. 6. If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates Select answer from the options below: a. no errors can be discovered. b. no errors have been made. c. the mathematical equality of the accounting equation. . that all accounts reflect correct balances. 7. The final step in the recording process is to Select answer from the options below: a. enter the transaction in a journal. b. prepare a trial balance. c. transfer journal information to ledger accounts. d. analyze each transaction. 8. The time period assumption states that Select answer from the options below: a. the economic life of a business can be divided into artificial time periods. b. estimates should not be made if a transaction affects more than one time period. c. adjustments to the company's accounts can only be made in the time period when the business terminates its operations. d. a transaction can only affect one period of time. 9. Under accrual - basis accounting Select answer from the options below a. net income is calculated by matching cash outflows against cash inflows. b. cash must be received before revenue is recognized. c. events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. d. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. 10. Sunland Company purchased supplies costing $7030 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1870 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be Select answer from the options below a. Debit Supplies Expense, $1870; Credit Supplies, $1870. b. Debit Supplies, $1870; Credit Supplies Expense, $1870. c. Debit Supplies, $5160; Credit Supplies Expense, $5160. d. Debit Supplies Expense, $5160; Credit Supplies, $5160.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 27MC: What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both...

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